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
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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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