The Harmonized Effects of Generic Strategies and Business Capabilities on Business Performance

Abstract

Abstract.Resource-based view and the positioning theory are the two main approaches which are considered as contrary to each other in order to achieve competitive advantage and superior business performance. In this study, the main subject is to harmonize these two theories with a research model which is based on the assumption that business strategy is more effective when pursued with related capabilities. To perform the study, we conducted a questionnaire survey with 445 owners/executives of manufacturing firms. We measured business capabilities in terms of management, production, marketing-sales, information system, logistics and external relationship dimensions. Component factors and key variables for the constructs, which are identified through a literature review, are confirmed using AMOS 16.0. Then data have been analyzed to test the hypothesis by using SPSS 15.0. As a result, separate and harmonized effects of business capabilities (BC) and generic strategies (GS) on business performance have been examined.

Does alignment matter? The performance implications of HR roles connected to organizational strategy

“…Here, the main focus is on decreasing costs whenever possible and as such, organizations using this type of strategy are aiming to achieve more efficiency at the employee level through HRM (cf. Acar & Zehir, 2010;Yamin et al, 1999). In line with this is also Huselid, Becker, and Beatty's (2005) argument regarding the appropriate behaviors within such organizations.…”

“…Organizations with a cost-based strategy commonly focus more on standardized processes and repetitive tasks to achieve efficiencies. The operational roles of HR are well suited to contribute to developing standards (Huselid et al, 2005), organizing processes (Acar & Zehir, 2010;Yamin et al, 1999) and monitoring employees (Katou & Budhwar, 2009) to achieve the main goals of a cost-based strategy. Furthermore, applying an operational HR role is well suited to target the needs and concerns of employees by a clear focus on routines and standardized behavior (Truss, 2008;Ulrich, 1997) that completes the alignment with a cost-based strategy.…”

“…Commonly, two generic organization strategies are distinguished in the literature: the cost-based strategy and the innovation-based strategy (Acar & Zehir, 2010;Arthur, 1992;Dess & Davis, 1984;Gates & Langevin, 2010;Miller, 1986). This typology can be found among the most popular strategy models such as Porter's (1980) generic organization strategies of cost-leadership and differentiation or Snow's (1978, 2003) prospector strategy (innovation focused) and defender strategy (cost focused).…”

“…There are several authors that linked these two generic organizational strategies to performance (Acar & Zehir, 2010;Dess & Davis, 1984;Dröge, Vickery, & Markland, 1994;Miller, 1986;Yamin, Gunasekaran, & Mavondo, 1999). By linking the human aspects of the organization to the organizational strategy, the HR function will further enable the structure and development of necessary skills and abilities of employees to constitute a viable source of competitive advantage and thereby having a positive impact on performance outcomes (Becker & Huselid, 2006;Christiansen & Higgs, 2008;Combs et al, 2006;Huselid, 1995;Lawler & Boudreau, 2009;Ulrich, Brockbank, & Johnson, 2009).…”

The Cycle of Customer Value: A Model Integrating Customer and Firm Perspectives

“…This perspective focuses on the links between customer value, firm performance and competitive advantage and argues that a firm's success depends on the extent to which it delivers what is of value to its customers (Acar, Zehir 2010;Payne, Holt 2001). Naumann (1995) stresses that product quality alone is not enough to guarantee a firm's survival and states that the key success factor is the firm's ability to create and deliver superior customer value compared to its competitors.…”