The main research question of the study is this: Is the firm embedded into ecology, society, and governance (ESG), or vice versa? Using the resource‐based view as a theoretical lens, and stakeholder ...capitalism as a paradigm anchored in the Dashgupat Review, we demonstrate in a panel data over 26 years that at the firm level, the relationship between sustained competitive advantage and the ESG footprint is concave shaped, and the impact inequality multiple gaps of the ESG footprint are 4.75 times the providing capacity of the natural and business environment. To solve the common method variance, endogeneity, and unobserved heterogeneity, system GMM is used as a method in a dataset of US manufacturing firms from 1992 to 2019. At the end, we argue that extant attributes of a resource base for sustained competitive advantage have an inherent flaw anchored in the resource‐based view, as they ignore the “environmental, social, and governance (ESG) friendliness” attribute of a resource. Managers need to rethink the objective of their firms if they want to survive in the new ESG‐friendly economy with stakeholder supremacy.
Research Summary
We develop a structural theory of power to explain how an organization is indirectly influenced by others through intermediaries. Our theory begins by explaining why an organization ...can improve its power position by acquiring partners that have direct advantages over it. We then propose the construct of indirect disadvantage to explain why an organization is motivated to acquire other partners that have advantages over its powerful partners. We further predict that the organization is motivated to acquire non‐partners to gain two‐step leverage over powerful partners. Finally, we theorize that the total indirect disadvantage of an organization relative to all partners negatively influences its performance. Using an extensive dataset on American businesses (1997–2007), we find strong support for our theory at both industry‐industry and firm‐industry levels.
Managerial Summary
Powerful buyers and suppliers are major influencers of the bottom line. This study develops a new theory to explain how to deal with them effectively, especially through mergers and acquisitions. In addition to considering powerful exchange partners as acquisition targets, firms can seek to exercise indirect influence over them through others. Acquiring other partners or non‐partners that have control over powerful buyers and suppliers is often feasible and effective in dealing with those organizations and improving the firm's financial position. Our analysis of a very large sample of American businesses over a decade not only provides clear evidence that supports our theory but also highlights the substantial competitive advantages enjoyed by firms that exercise indirect sources of influence over major exchange partners.
Basic theory suggests that multinational enterprises (MNEs) succeed when they develop knowledge-based capabilities, often called firm-specific advantages (FSAs). In China’s case its large MNEs have ...few such knowledge based FSAs. Instead, they are building scale economies based on China’s country-specific advantages (CSAs) in relatively cheap labor and natural resources. Thus, China’s MNEs will likely become knowledge seekers as they go abroad, not knowledge takers. Unlike Western MNEs who transfer knowledge and technology through their FSAs, China’s MNEs will lack such FSAs for some years to come. While China’s MNEs will have difficulty in sustaining their initial forays abroad, it is likely that they will expand intra-regionally rather than globally and in a similar manner to other large multinationals.
Instrumental stakeholder theory considers the performance consequences for firms of highly ethical relationships with stakeholders, characterized by high levels of trust, cooperation, and information ...sharing. While research suggests performance benefits, an obvious question remains: If instrumental stakeholder theory–based stakeholder treatment is so valuable, why isn’t it the dominant mode of relating to stakeholders? We argue that the existing instrumental stakeholder theory literature has three shortcomings that limit its ability to explain variance in performance. (1) Little theory exists around how instrumental stakeholder theory–based stakeholder management could provide sustainable competitive advantage. (2) The literature has largely neglected the potential downsides (i.e., costs) associated with pursuing these sorts of stakeholder relationships. (3) There is a paucity of theory on the contexts in which the incremental benefits of instrumental stakeholder theory–based stakeholder relationships are most likely to exceed the costs. As our primary contribution, we develop a theoretical path from a communal sharing relational ethics strategy—characterized by an intention to rely on relational contracts, joint wealth creation, high levels of mutual trust and cooperation, and communal sharing of property—to a close relationship capability, which we argue is valuable, rare, and difficult to imitate and, thus, a potential source of sustainable competitive advantage. We also consider the potential costs of achieving this capability and identify contexts in which the resulting relationships are likely to have the greatest net value.
Moser et al discuss the importance of considering situatedness in theorizing about competitive advantage through artificial intelligence (AI). They argue that AI technologies are not neutral and ...context-independent, but rather embedded in specific social, cultural, and organizational contexts. They highlight the need to understand how these contexts shape the development and deployment of AI systems and influence their impact on competitive advantage. They respond to Kemp's arguments about the potential of AI to disrupt traditional sources of competitive advantage and propose a situated approach that acknowledges the complex interplay between AI technologies and their contexts. They suggest that future research should focus on understanding the dynamics of situatedness in AI-driven competitive advantage and develop strategies for effectively leveraging AI technologies in different organizational contexts.
How can firms establish competitive advantages using artificial intelligence (AI)? Although AI is beginning to permeate business activities, our understanding of how AI can be used to create unique ...value is limited. To address this void, I introduce the concept of situated AI and illuminate its importance for establishing AI-driven competitive advantages. The paper highlights the organizational activities involved in situating AI-specifically, grounding, bounding, and recasting. It also explains the conditions in which these situating activities better enable firms to develop AI-driven capabilities that are firm-specific, cost-effective, and appropriate for opportunities in the strategic environment. Thus, this paper provides an integrative framework for connecting a firm's AI pursuits to competitive advantage.
Buckley et al.’s (J Int Bus Studi 38(4):499–518, 2007) pioneering work concluded that the determinants of outward foreign direct investment (OFDI) from China were similar to those observed in ...developed countries – but with a few modifications. In this commentary, we suggest continuing their effort to understand what is distinctive about Chinese multinational enterprises (CMNEs). We look for underlying explanations that are analytically useful and potentially generalizable, unlike a firm’s nationality, which is a catch-all variable with no analytical value. Based on prior research and Ramamurti (Glob Strategy J 2(1):41–47, 2012a), we argue that the following variables help explain distinctive aspects of CMNE internationalization: (1) their “stage of evolution as a multinational enterprise,” with most CMNEs being infant MNEs rather than mature MNEs; (2) the “global context for internationalization,” which has helped CMNEs internationalize faster than it was possible in earlier decades; (3) “government-created advantages,” which complemented China’s natural endowments and for the most part improved CMNEs’international competitiveness; and (4) “leapfrogging advantage,” which allowed late-mover Chinese firms to gain a competitive advantage in smokestack industries and some sunrise industries. These variables may also explain the behavior of MNEs from other emerging economies and are therefore candidates for inclusion in general models of the internationalization process.
Veterinary nursing embraces a wide variety of skills and, traditionally, VNs cover many different areas in their day-to-day jobs. However, for a veterinary nurse to be able to specialise their work ...into one particular area has many advantages. The foremost advantage for most specialised nurses is the increased job satisfaction gained by being able to focus on something that they particularly enjoy. Another significant advantage is the improved patient care offered, as specialised skills develop and specialised teams with like-minded colleagues are built, standardising care at a high level.
PDF
