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Auditing Figure 1. Theoretical profi le of a market-based view of competitive strategy


Uniqueness of resource and capabilities


4 Internal


recognition of unique capabilities


New


technology scanning


Organisational learning


Jockeying of


competitive position


Skills and knowledge investment


Commitment to HR


development


Generic processes operated


Business


performance 3


Greater emphasis on cost and service


Robustness of operations


Price a distinct strategic variable


performance


Measurement of innovation and learning


Skills


acquisition and learning


2 knowledge


Employee tacit


Development of unique capabilities


Market Signalling


Strategic grouping


Competitive positioning andconduct


1


Management Services Winter 2012


45


to a ‘supportive’ role through to the development of a more proactive, or driving (of competitive strategy) role. It is this latter role that theorists equate with ‘world class service delivery’. We adopted these distinctions in devising our audit approach.


How the audits were carried out


Figure 2. Theoretical profi le of a resourced-based view of competitive strategy


Uniqueness of resource and capabilities


4 Internal


recognition of unique capabilities


New


technology scanning


Organisational learning


Jockeying of


competitive position


Skills and knowledge investment


Commitment to HR development


Generic processes operated


Business


performance 3


unique customer value(s), an organisation can create and sustain a competitive edge. Clearly, the strategic intent for these two approaches to competitive strategy formulation is different and distinguishable. The differentiation could be accomplished through an analysis of the nature of


Greater emphasis on cost and service


Price a distinct strategic variable


Measurement of innovation and learning


Robustness of operations performance


Skills acquisition and learning


2 knowledge


Employee tacit


Development of unique capabilities


Market signalling


Strategic grouping


Competitive positioning andconduct


1


The audits of the view of competitive strategy being adopted and strategic contribution being made from the operations of 21 service fi rms were carried out by the use of questionnaires and structured interviews. The fi rst questionnaire (the y-axis questionnaire) was designed to analyse the competitive strategy of each fi rm. This was accomplished by soliciting, from the questionnaire respondent who was highly placed in each fi rm, the perceived signifi cance attributed to a number of preselected common types of competitive behaviour. The four major categories of competitive behaviour that constituted the foci of the competitive strategy audit and to which a number of subordinate questions were linked, based on the theories of Porter (1991, 1996) and Teece et al., (1992, 1997), were as follows: • Competitive positioning and conduct - market-based;


• Skill acquisition and learning – resource-based;


• Business performance characteristics – market- based;


the strategic management decision that an organisation makes to create and sustain a competitive edge.


Alternative strategic roles and contribution from operations


Models depicting the role and contribution of operations to competitive strategy


formulation and execution are well established (Hayes et al.,1988; Chase and Hayes 1991). They illustrate the theoretical stages of development of the operations function describing the signifi cant differences and characteristics of each stage. These roles may be summarised as being ‘a journeyman’ role


• The uniqueness of resources and capabilities – resource- based.


Each questionnaire respondent was asked to consider 15 ‘observable elements’ of these categories of competitive behaviour and to give a perceived assessment, on a fi ve point scale, of the fi rm’s commitment to their practice.


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