Ofarrell and hitchens 1988 and 1989 stressed the

Info icon This preview shows pages 62–65. Sign up to view the full content.

O'Farrell and Hitchens (1988 and 1989) stressed the relationship between sources of competitiveness and corporate performance as well as the importance of the effects of price, quality, design, marketing and management on a firm‘s competitiveness. Other factors of competitiveness include the level of overhead costs, organisational structure, corporate culture, human resources, quality of
Image of page 62

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

48 customer service, product/service development and efficiency, and marketing expertise (Pratten, 1991; and, Slevin and Covin, 1995). With regard to external environment factors, Horne et al. (1992) point out that the scope for action and growth reflects the availability of opportunities to generate increased long-term profitability inherent in the external environment. Slevin and Covin (1995) suggested that continuous repositioning is needed for new, small firms to anticipate and be responsive to the actions of competitors. The influence of the entrepreneur is also an important factor affecting corporate competitiveness. Man et al. (2002) suggested that the process of achieving competitiveness is strongly influenced by key players. Scholars like the OECD (1993) and Stoner (1987) argue that the basic role played by the owner/manager is a major determinant of corporate competitiveness as the decisions made by this individual determine the firm‘s overall strategy. Other entrepreneurial factors include the ‗experience‘ and ‗goal orientation‘ of the small business owner (Chawla et al., 1997). Indicator Approaches (IA) Various indicators have been formulated by researchers for evaluating organisational competitiveness. This is the indicator approach (IA). Through an extensive literature review, 91 relevant papers published during the period from 1973 to 2007 are identified by Zhang et al. (2009). From these identified papers, Zhang summarised 24 contributors as described in Table 2.2. The rate at which each of these indicators appears in published papers is exhibited as Figure 2.1 (Zhang et al., 2009). This reflects the relative importance of these indicators as determined by researchers. F or example, indicators I12 and I16: ―innovation
Image of page 63
49 action‖ has appeared in 18 out of a total of 91 reviewed papers (a 20% adoption frequency) while ―market process‖ appeared in only 14 papers (a 15% adoption frequency). Table 2-2 Typical indicators for assessing the competitiveness of organizations (Zhang et al., 2009) Indicators I1-Brand value I5-Customer Satisfaction I9-Organisational Structure I13-IT Application I2-Core Competence I6-Competitiveness Strategy I10- Expertise Talent I14-Knowledge Management I3-Cost Advantage I7- Entrepreneurism I11-HR Management I15-Production Capacity I4-Culture I8-Total Assets I12-Innovation Capability I16-Production Efficiency I17-Market Share I18-Organisational Learning I19-Marketing I20-Productivity I21-Profitability I22-Quality Control I23-Uniqueness of Product I24-Value Creation The indicator approach is widely used to assess the competitiveness of an organisation or industry. It can be employed in one of two ways: the single indicator method and the multi-indicator method (Rappaport, 1983).
Image of page 64

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 65
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern