Corporate culture, business models, competitive advantage, strategic assets and the bottom line

Abstract

Purpose -This paper seeks to enhance understanding of the role and effect of corporate culture as a unique strategic asset on the success of business models. Design/methodology/approach -The paper is a conceptual exploration of several key constructs and their interrelationship. The argument is based on four related notions: that corporate culture is an "asset"; that it is a "strategic asset" in the sense of comprising a source of competitive advantage; that it might well be the "ultimate strategic asset"; and that culture as a strategic asset can be the essence or core of a business model. The paper also uses "empirical examples" of actual companies to study and demonstrate the core constructs and ideas. It also examines issues involving the key dimensions of corporate culture, the measurement of corporate culture, and certain related performance measurement issues. Findings -The paper shows that corporate culture is a strategic asset, which, if managed properly, can be the key differentiating factor in a successful business model. It also shows that when not managed properly, can actually transform into a "liability". Practical implications -This paper demonstrates that corporate culture is a critical strategic asset because of its role in creating competitive advantage and successful business models. It suggests that corporate culture can also be the single most important source of competitive advantage in business models. Finally, it suggests that practicing leaders as well as investors and academics need to pay attention to corporate culture as a component of business strategy. Originality/value -This paper contributes to the literature and to practice by examining the notion that corporate culture is a strategic asset in depth and examining the relationship between culture as a strategic asset and business models. It also takes steps towards a coherent framework for both scholars and practicing managers to frame and understand the issues involved in the management and measurement of this critical strategic asset.

Can Environmental Regulations Promote Corporate Environmental Responsibility? Evidence from the Moderated Mediating Effect Model and an Empirical Study in China

“…ERs and manager's personal features will influence business decisions. However, corporate culture determines the extent of influence [42]. In other words, the corporate culture regulates the effects of other factors on business decisions.…”

The effect of creative corporate culture and intangibility on the performance of foreign firms traded on the NYSE

“…2. Review of the literature and hypotheses 2.1 Creative corporate culture, intangibility and performance Corporate culture may be defined as a set of central organizational values which inform corporate decisions and behaviors and which may influence the beliefs and actions of stakeholders (Flamholtz and Randle, 2012). According to Cameron and Quinn (1999), corporate culture is a set of elementsbasic values, approaches, assumptions, interpretations, etc.which characterizes a given firm; thus, each culture profile may have a different impact on corporate success, also taking into account the firm's strategic orientation and the needs of the external environment.…”

“…A strategic resource controlled by the firm, corporate culture, is a potential source of sustainable competitive advantage (Barney, 1986;Flamholtz and Randle, 2012). In light of the tenets of resource-based view (RBV), the success of a firm depends on the resources it has at its disposal and its ability to control such resources, including intangible assets (Galbreath, 2005).…”

“…Thus, based on RBV, corporate culture may be considered a sustainable strategic resource controlled by the firm, with specific characteristics which can determine the success or failure of a business, which, in turn, increases organizational efficacy in a culture-specific manner, leading to better performance (Barney, 1986;Fekete and Böcskei, 2011;Flamholtz and Randle, 2012;Han, 2012;Helfat and Peteraf, 2003).…”

Pembelajaran Pengetahuan Kreatif M elalui As et Strategis Dalam Menin gkatkan Keunggulan Kompetitif

“…Aset strategis merupakan aset yang menghasilkan sumber keunggulan bersaing yang berkelanjutan. Flamholtz & Randle (2012) menjelaskan bahwa tidak semua aset bisa menjadi aset strategis, karena suatu aset dapat menjadi aset strategis ketika memenuhi dua kriteria: kriteria yang pertama adalah suatu aset harus menghasilkan beberapa perbedaan kompetitif yang memberikan manfaat dan menjadi sumber keuntungan bagi perusahaan. Merek sebagai aset tidak berwujud dapat menjadi aset strategis karena memiliki nilai ekonomis yang sangat besar.…”