Abstract

     The purpose of the study is to analyse how green reverse logistics technology impacts agricultural entrepreneurial marketing firms’ operational efficiency and sustainable competitive advantage. Systematic literature review and meta-analytical methodology was adopted to execute the current study. Reverse Logistics Model has been used for the current study as the theoretical model grounding the study as it enables a quick reaction and finding resolution for the customer return whilst regaining the highest value that is possible on each returned item. Results indicate that green reverse logistics technology has a strong influence on agricultural entrepreneurial marketing firms’ operational efficiency and sustainable competitive advantage. The study further shows existing research gaps that can be closed by future research studies. The study has limitations which may affect the generalisability of the results since they can only be applied testing the validity and reliability of the developed conceptual model. The study adds to theoretical literature development by extending knowledge on the Reverse Logistics Model theoretical modelling framework since there is paucity of research that have directly applied the same model in agricultural inputs entrepreneurial marketing firms’ operational efficiency and sustainable competitive advantage. Practically, the study enhances the need for adoption of contemporary technologies to solve the current challenges facing agricultural inputs entrepreneurial marketing firms’ sustainable operational efficiency and competitive advantage in the marginalised areas, not only in developing and emerging economies, but also dotted around the world. The study contributes to the conceptual development, theoretical and practical policy directions applicable to any agricultural inputs entrepreneurial marketing firms. A model can be tested to prove its validity and reliability in future similar studies, using alternative methodologies.

Introduction

     Environmental concerns have affected how business is done world over (Alnoor, Eneizan, Makhamreh & Rahoma, 2018; Kiatcharoenpol & Sirisawat, 2020). This has caused agricultural entrepreneurial marketing firms to re-design and re-align their processes in such a way that they are environmentally friendly (Kariuki, Ngugi & Mburu, 2022; Kazancoglu, Ekinci, Mangla, Sezer & Kayikci, 2021). The need for agricultural entrepreneurial marketing firms and consumers to ensure the dismantling of used products in a bid to extract parts for reuse, recycling or alternatively to ensure safe disposal (Martín & Fernandez, 2022). This allows companies to seamlessly integrate value creating activities of different supply chain partners (Martínez, Carracedo, Comas & Siemens, 2021). Seamless integrating of value creating activities include the movement of end of useful life goods or products from consumers to agricultural entrepreneurial marketing firms for the purposes of recapturing value and or ensuring disposal in an environmentally friendly manner (Martínez, Puertas, Martín & Ribeiro-Soriano, 2022; Nyagadza, 2021). This process of moving goods or products from the consumers to the manufacturer for recapturing value or ensuring disposal in an environmentally friendly manner is known as reverse logistics (Hills & Hultman, 2013; Isernia, Passaro, Quinto & Thomas, 2019; Julianelli, Caiado, Scavarda & Cruz, 2020). Firms aim at attaining operational efficiency as they strategically manage the process of product returns (Guarnieri, Cerqueira-Streit & Batista, 2020; Alharthi, 2012; Hersleth et al., 2022). By gaining operational efficiency through strategic management of reverse logistics (RL) can result in the improvement of the agricultural entrepreneurial marketing firm’s competitive position. Operational efficiency (OE) lead to improved competitive advantage of a firm (Job, Njihia, Maalu & Iraki, 2020). In many agricultural inputs industries RL costs tend to exceed the costs of production. Lack of an integrated supply chain strategy may in the long-term influence the agricultural entrepreneurial marketing firm’s competitiveness (Nyagadza, Pashapa, Chare, Mazuruse & Hove, 2022).

Discussion and conclusion

     With the perspective of the stated hypotheses, the modelling conceptual framework in Fig. 2 shows the antecedents of GRLT such as Reuse (X1), Repair (X2), Remanufacture (X3), and Recycle (X4), directly influence Operational Efficiency (OE) (M1) and Sustainable Competitive Advantage (SCA) (Y1 ) of the agricultural inputs entrepreneurial marketing firms. During the process of validating the structural modelling framework and its proposed hypotheses, future researchers need to make verifications of the absence of endogeneity through the simultaneity between Y1 and X1. If there is endogeneity on X1then an instrumental factor should be applied to have a solution for the problem under study.

     Further to this, suppliers and other supply chain participants receive returned goods, materials, and sub-assemblies for remanufacturing (Beamon, 1999). The basic design of a product must account for disassembly processes. Having suppliers on board is crucial for creating environmentally friendly products (Wu & Dunn, 1995). A company’s environmental impact can only be reduced by taking into account the entire system in which it operates (Andrushchak, 2018; Beamon, 1999; Richnák & Gubová, 2021). For widespread greening efforts, the green supply chain is the perfect emphasis since it reflects this comprehensive, systems-level perspective. The importance of constructing decision frameworks for reverse logistics processes for effective product take-back, reuse, and recycling of specific components and materials of end-of-life structures. The research also suggests effective choice approaches for reverse logistics vehicle routing (Lee & Lam, 2012; Kassem & Chen, 2012). Consequently, many experts in the field have proposed and executed several approaches to making decisions (Job et al., 2020). Recently, Chanintrakul, Coronado Mondragon, Lalwani and Wong (2009) provided a state-of-the-art review of the design of reverse logistics networks.

Abstract

Introduction

Theoretical background

Conceptual framework

The customer context in the C-O-T-E framework

The organisational context in the C-O-T-E framework

The technological context in the C-O-T-E framework

The environmental context in the C-O-T-E framework

Methodology and research context

Findings

Introduction to forms of co-creation in practice

Customer-context of co-creation

Organisation-context of co-creation

Technology-context of co-creation

Environment-context of co-creation

Challenges to value co-creation

Discussion and implications of findings

A new form of co-creation: co-conception for competition

Customer context of co-creation

Organisation context of co-creation

Technology context of co-creation

Environment context of co-creation

Conclusions, limitations and future research

Theoretical contributions

Practical contributions

Limitations and future research direction

Disclosure statement

References

Abstract

     This study aims to bring a renewed focus on Value Co-Creation (VCC) between an organisation (service provider) and its customers in the business-to-business (B2B) context. From the literature review, a conceptual framework of factors affecting VCC was developed by adding Customer to the Technology-Organisation-Environment framework (T-O-E). The enhanced Customer-Organisation-Technology-Environment (C-O-T-E) framework was empirically investigated from the focal firms’ perspectives using semi-structured interviews with seventeen executives from knowledge-intensive service organisations. The research captured a total of sixteen factors affecting VCC and highlighted co-conception for competition as a new form of co-creation, where the customer-service provider’s long-term relationship positively enables a competitive strategy. These findings have significant implications for how service providers achieve competitive advantage in a challenging B2B marketplace.

Introduction

     Co-creation is defined as, ‘the practice of developing systems, products, or services through collaboration with customers, managers, employees, and other company stakeholders’ (Ramaswamy & Gouillart, 2010, p. 2). To make co-creation successful, it is necessary to understand what motivates organisations and their partners involved in the co-creation process (Frow et al., 2015; Fuller, 2010). The benefits of customer co-creation are well reported (Ind et al., 2013; Moreira et al., 2020; Ramaswamy & Ozcan, 2018). Purchase and Volery’s (2020) systematic review of 289 papers highlights the growing focus on the role of external actors, in specific sectors, in enabling marketing innovation through co-creation and enhancing organisational performance.

     Nonetheless, this process can be challenging. Mckinsey’s 2014 study of 300 companies found that 90 per cent of executives were eager to integrate customers’ opinions and resources into their core processes, although only 12% actually did this (Bughin, 2014). From the customer perspective, Bughin’s (2014) study revealed that only a quarter of customers were aware of the co-creation concept; a further 5% knew about co-creation but not how it worked. Recent scholarly work has called for an extension of the boundary of co-creation research to include customers’ and organisations’ networks (Brodie et al., 2019; Vargo & Lusch, 2016), and for the study of factors that are essential for co-creation in the business-to-business (B2B) context (Ostrom et al., 2015; Ranta et al., 2020). In response to these gaps, this study explores the relationships between B2B vendors (service providers) and their customers (service buyers).

Conclusions, limitations and future research

     The study’s findings highlight various forms of co-creation in practice and C-O-T-E framework-related factors (Figure 1), empirically identifying challenges to VCC in the B2B context. In response to RQ1, this research identifies several factors affecting customer participation in VCC: culture of customer firm, motivation, perceived value, competence, trust and relationship, and peer influence. This is one of the few studies to highlight the importance of the customer firm’s culture in VCC; similarly, this paper has emphasised that customers can influence their peers. In response to RQ2, this study finds that the organisational factors that affect participation in VCC are motivation, perceived value, competence, policy and governance, and organisational culture. Several technological and environmental factors and forms of co-creation in the B2B context are identified. A key contribution of this paper is the identification of a new form of co-creation: co-creation for competition. The empirical findings also confirmed the customer (C) context of co-creation, which extends the work of Tornatzky et al.’s (1990) TOE framework by applying it in the new context of value co-creation.

Abstract

     This study aims at investigating the mediating impact of business intelligence, innovation speed and innovation quality on the relationship between the different components of intellectual capital and competitive advantage in the context of Jordanian companies. To achieve this, the study developed a theoretical framework that depicts the mediation through data that were collected randomly, from the pharmaceutical and medical supplies companies, with a total sample of 569 participants. Data were analyzed using structural equation modeling, SEM (CB-SEM), for model fit and Process software for path analysis to estimate the different indirect effects. The findings provide evidence that all mediators serve differently as important mediating mechanisms between the different components of intellectual capital and competitive advantage. Overall, the results of this study show and clarify the mediating mechanism of business intelligence, innovation speed and innovation quality, as mediators through which human capital, structural capital and relational capital improve competitive advantage in the context of Jordanian companies.

Introduction

     In the field of business, knowledge has become very important in the success of organizations and their contribution to transformation into a knowledge economy, where most of knowledge is implicit and is available in the minds of individuals, and depends on their intuition, intellectual experience and skills. It is also available in the form of meaningful information about the market, the beneficiary, communications and technology. In fact, knowledge can be measured and plays a crucial role in achieving competitive advantage [1]. Competitive advantage is defined as a distinct skill, technology or resource that enables the organization to provide a service, commodity or benefits distinct from what competitors provide within the same sector, which confirms the distinction and difference of the organization from its competitors from the point of view of customers [2]. However, Dynamic Capabilities, sustainable competitive advantage, innovations and market responsiveness are all sources of competitive advantage. Dynamic Capabilities are the organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve and die [3]. An innovation is defined as an idea, a product or process, or a system that is perceived to be new to an individual [4]. Sustainable competitive advantage is defined as a strategy that cannot be easily imitated by the competitors of the resources owned and used by a company and thus creates value [5]. Market responsiveness describes how timely the organization is in responding to market changes [6]. In light of this, the methods of developing performance in organizations have changed, after they were focused on the organizational or material side of the administrative process, which was losing its spirit or human nature, and leading to a feeling of frustration for workers and beneficiaries. These methods became focused on the human aspect of the administrative process in its practical sense, including the elements of effective leadership, empowering workers and attention to intellectual capital [7].

Discussion, Conclusions and Recommendations

     Based on the results obtained, the study found that the impact of structural capital on competitive advantage via the mediation of business intelligence is insignificant, and the impact of relational capital on competitive advantage via the mediation of business intelligence is negatively significant, while the impact of human capital on competitive advantage via the mediation of business intelligence is positively significant. These findings together prove the existence of the mediation effect of business intelligence. This role of business intelligence is supported by [25], who showed that the various types of business intelligence are used for competitive advantage. In addition, business intelligence is involved in various other relations linked to competitive advantage as shown by [6]. However, in the current study, this is only clearly shown between human capital and competitive advantage. This result clarifies the mediating mechanism of business intelligence through which human capital improves competitive advantage in the pharmaceutical and medical supply companies in the Jordanian context. This means that pharmaceutical and medical supply companies in Jordan are effectively taking advantage of business intelligence by which human capital improves competitive advantage

     Having said this, the insignificant impact of structural capital and the negative impact of relational capital on competitive advantage through business intelligence could be attributed to either a low level of both structural and relational capital or the absence of such effect at all. These findings indicate that merely emphasizing structural capital and relational capital may not guarantee the expected competitive advantage. However, as none of the researchers have examined such mediation of the business intelligence relationship, especially at the individual level of the different components of intellectual capital, our findings can be partially supported by [6,25,33,42–44] only in the impact of Business intelligence on competitive advantage.

1- Introduction

2- Theoretical background

3- Materials and methods

4- Findings and discussion

5- Conclusions

References

Abstract

For many companies, the servitization of business grounded on Product Service Systems is proving to be a winning value proposition based as it is on a distinctive mix of economically, socially and environmentally sustainable solutions aimed at satisfying customer’s needs. This research investigates the conjoint effect of three potential sources of PSS’s competitive advantage: the type of PSS, i.e. a value proposition directed at a market segment based on specific customer behaviour, the core resources, competences and organizational processes on which the PSS’s business model is based and their level of protection from competitor’s replication. We adopted a multiple case study methodology to take into account the complex interrelation of the variables characterizing the phenomenon investigated by sampling 10 companies and collecting data by means of semi-structured interviews. Results of within- and cross-case analysis reveal that Use-Oriented PSS business models gain a competitive advantage from physical resources and organizational processes, whether protected against replication threat or not, while Result-Oriented PSS business models from people competences. Human capital is fundamental also for ProductOriented PSS business models, but companies can reach a competitive advantage only if protected against replication threat from competitors. The paper contributes to the expanding PSS literature by identifying potentially distinctive factors of the PSS business model and by providing useful considerations on PSS competitive and strategic potential, with an in-depth analysis of success elements.

Introduction

The Servitization of business refers to a shift from an exclusive focus on products or an exclusive focus on services toward integrated systems or bundles of products and services, with services playing an ever more relevant role as compared with products (Vandermerwe and Rada, 1988). Servitization can be based on a Product Service System, “a business model focused toward the provision of a marketable set of products and services, designed to be economically, socially and environmentally sustainable, with the final aim of fulfilling customer’s needs” (Annarelli et al., 2016: 1017). The integration of products and services can bring a non-negligible innovative potential, securing competitiveness while at the same time allowing companies to address environmental concerns and provide more sustainable offerings on the market. Indeed, PSS brings within it an incentive for companies to prolong the useful products’ life cycle, so as to ensure a better exploitation of physical resources and offering customers a more satisfactory experience (Tukker, 2015). Although there has been substantial research into Servitization and PSS for more than 20 years, there are still some important gaps concerning the analysis of the strategic value of PSS and its ability to constitute a value proposition (Baines et al., 2017; Kuijken et al., 2017). It is essential to investigate the current role of PSS as a value proposition and, to this end, evaluate the competitive advantage obtained by firms thanks to PSS implementation (Lightfoot et al., 2013). In their review, Annarelli et al. (2016) show that only a small number of papers (if compared to the total academic production on PSS) (~10%) have provided an analysis of PSS’s competitive potential. A considerable amount of contributions investigated the sustainability potential. Baines et al. (2007) underlined the impact of PSS on environmental dimension of sustainability: the reduction of consumption of inputs, of waste production and of public pressure on environmental issues. Lee et al. (2012) highlighted that PSS can impact positively on social sustainability by improving customers’ quality of life, comfortability of living environment, income level and health status. As regards the empirical base, some authors have focused on manufacturing firms. Azarenko et al. (2009) conducted a demonstration case study to investigate the feasibility of PSS for machine tool providers operating in a B2B context. Rese et al.

The study explores the key reinforcing factors of green competitive advantage among equipment manufacturing enterprises in China. Primary data using a survey method has been collected from managers and customers of equipment manufacturing organizations. Covariance-based structural equation modeling (CBSEM) using SPSS 23.0 and AMOS 23.0 have been employed to estimate empirical findings. The results show that green brand image leads the process of reinforcing green competitive advantage. It has been seen that customer pressure, regulatory pressure and green creativity positively influence green production. However, the influence of customer pressure is higher, which provide an insight to the decision makers. Additionally, the work has indicated that although green production and green creativity directly have a positive role in reinforcing green competitive advantage. But, the role becomes stronger when it contributes toward green competitive advantage via green brand image. The study concludes that the role of customers is highly significant, they can play a vital role in reinforcing green competitive advantage for the enterprises and also they can influence firms to adopt green production. Similarly, the green awareness programs would be pivotal to create awareness among the general customers for persuading a business environment for cleaner production in the country.

Introduction

The internal and external business environment of manufacturing firms has been significantly changed due to the rapid economic globalization. In order to adapt the changes of the market environment at a faster speed, reducing the operating cost and offering better products to customers, enterprises must emphasize upon innovation. At the same time, resources and environmental issues have become the primary dilemma faced by enterprises. The latest advancements show that a great deal of efforts is being made for environmental protection through innovation (Cole & Grossman, 2018; Shu et. al., 2016). Zailani et al., (2015) argued that due to the excessive consumption of resources and increasingly prominent environmental problems, firms should implement green production to effectively reduce environmental risks and their negative consequences in the whole production process. The concept and practice of green production is getting great attention due to its focus on addressing environmental issues. Green production refers to the process of adding environmental concepts into product life cycle (Przychodzen & Przychodzen, 2015). Even though, the implementation of green production reduces waste and improve productivity in an all-round way (Tseng et. al., 2013). But, to what extent it can be useful in establishing a green image and improving core competitiveness is not explored yet.

1- Introduction

2- Literature review and hypotheses development

3- Methods

4- Results

5- Discussion

References

Abstract

This paper seeks to clarify and refine the relationship between strategic and internal green marketing and firm competitiveness. Despite the significance of corporate environmental strategy to firms adopting a triple-bottom line performance evaluation, there is insufficient focus on strategic green marketing and its impact on a firm’s competitiveness. This study fills the gap by providing a comprehensive view of strategic green marketing and its impact on competitive advantage. Findings also reveal the moderating role of internal green marketing actions towards the development of a sustained competitive advantage. Specifically, the findings build on contemporary green marketing literature suggesting that a significant interplay between strategy and people exists which enhances the creation of competitive advantage. This in turn increases financial performance. Finally, this research uses an updated approach to build on current literature concerning the drivers and outcomes of strategic green marketing. This provides managers with nuanced insights about environmentally-driven competitive advantage.

Introduction

Unlocking the relationship between corporate environmental strategy and firm competitiveness is paramount for contemporary business researchers, policy makers and practitioners (Gibbs & O’Neill, 2016). A green economy that is low carbon, resource efficient and socially inclusive is also the goal of the United Nations Environment Programme (UNEP, 2011). Despite calls for radical, holistic approaches beyond mere technological fixes and product innovation (Geels, McMeekin, Mylan, & Southerton, 2015; Lim, 2016) there remains a perceived but unresolved tension between green marketing and competitive advantage. A reluctance to pursue a green marketing orientation (Papadas, Avlonitis, & Carrigan, 2017) undermines universal engagement with sustainable business practices, and exacerbates corporate risk and losses. Despite the potential costs involved, the damaging and costly environmental consequences of traditional linear production and consumption are driving more innovative firms to shift their focus to clean production, design for the environment and ecoefficiency (Banerjee, 2017), and pursue resource efficient circular economy (CE) strategies including materials recycling and product repurposing (Moreau, Sahakian, van Griethuysen, & Vuille, 2017). CE has also gained momentum in the European Union Circular Economy package (EU, 2015) and Chinese law. There is no alternative to sustainable development and yet many companies remain convinced that their competitiveness will be eroded if they become more environmentally-friendly (Nidumolu, Prahalad, & Rangaswami, 2009). Further, much research in marketing remains data rather than theory driven (Hult, 2011; Webster, 2009). This hinders progress and leads to fragmented understanding of environmental concerns in marketing. A gap exists for a sound theoretical approach to provide a holistic understanding of the intersection between green marketing and competitiveness. Such an advance in knowledge not only presents theoretical support for future empirical investigation, but also provides legitimacy for managers facing resistance to the adoption of a green marketing orientation. This paper addresses that theoretical gap.

Team game

A hill of beans

Six of the best

Reference

Review

There is nothing more satisfying than seeing once dominant force get its comeuppance from the new kid in town. Whether it is in the movies or in sport, the narrative of a king being usurped by a young pretender is played out time after time, and it never ceases to fascinate. We see it in business as well, and usually it is an established but slow-moving firm being disrupted by a smaller, more nimble, more agile adversary who seems to simply pull the rug from right under their feet. It is rare, however, to see mature but vibrant forces in business compete with rivals with fewer resources and lose at their own game. This is on the proverbial “level playing field”, where despite the fact all things being generally equal, you see the incumbent force outplayed and outmaneuvered by new entrants. One might expect that the established parties have better market knowledge, more reach and deeper pockets to stave off any new competition, no matter how much the neutral observer might want the underdog to give their rivals a bloody nose. But in a new era of globalization, there are new rules that have yet to be written, and it may well be that what we have seen previously has been the start of a cycle, and it might just start turning things the other way in favor of those countries that have yet to feel the full benefits of the global village.

1- Introduction

2- Literature review, conceptual framework and hypotheses development

3- Sustainable competitive advantage

4- Theoretical framework

5- Conceptual framework

6- Study methods

7- Result and discussions

8- Summary of study hypotheses testing

9- Conclusion

10- Recommendation and practical implication

11- Theoretical contribution

References

Abstract

Purpose – The purpose of this paper is to establish how small- and medium-sized enterprises (SMEs) in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries can sustain or improve their competitive advantage by integrating specific resources and capabilities. The paper seeks to offer an alternative framework “resource capability-based view (RCBV)” that provides a strategic marketing direction for SMEs regarding how innovative marketing practices and dynamic marketing capabilities integrate to create sustainable market advantage.
Design/methodology/approach – This current paper employed a quantitative survey design with a positivist methodological research paradigm. The paper used a multi-stage stratified and simple random sampling technique to collect data from 591 manufacturing SMEs in Ghana. SMEs in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries were sampled for the study. A structural equation model was employed to test the study hypotheses to arrive at the findings.
Findings – The study found that product design and packaging innovations, promotion innovations, retail innovations and pricing innovations provide sustainable market advantage for water, beverage, detergent and metal fabrication SMEs. The paper also found that new product designs and packages are the major drivers of sustainable market advantage followed by innovative retail outlets. The paper further originated that integrating marketing competence (marketing resources and marketing capabilities) and innovative marketing activities provides a marginal improvement in competitive advantage. Physical resources may result in market advantage but integrating physical resources with dynamic marketing capabilities provides sufficient competitive sustainability in a competitive market.
Practical implications – SMEs in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries should prioritise their key marketing resources and capabilities in product designs, promotion, pricing and retailing innovations in order to sustain market advantage. Old products should not be faded from the market but rather SME managers should employ innovative retail strategies, such as eco-friendly advertising, product re-branding and digital platforms (social network sites and websites), which are important to sustaining market performance. Government must develop targeted policies to bridge the information gap between SMEs and research institutions such as universities through regular subsidised entrepreneurial training and creation of semi-annual industry-academic fairs. The main theoretical contribution of this current paper is the development of “RCBV” as a framework which shows how SMEs can integrate specific resources and capabilities to achieve sustainable market advantage. This framework offers an integrative view of conventional resource-based view and dynamic capability theory (DCT) which are independently examined in the literature.
Originality/value – This current study has proposed an integrated and elaborative approach to the conventional resource-based view and DCT which does not provide a composite understanding in the literature. SMEs may lack the needed resources and capabilities to introduce new products or extant product lines but this paper has demonstrated that how SME can sustain market advantage of existing product(s) by synchronously using specific marketing resources and capabilities. The proposed framework offers a guide for SMEs to integrate their physical resources and capabilities to sustain their market advantage.

Introduction

The intensity of global market competition has created dynamic and fast-changing business environment which has affected all enterprises including small- and medium-sized enterprises (SMEs). SMEs have, therefore, realised the need to explore, exploit and deploy innovative strategies in order to stay competitive in the changing business environment (Carvalho and Costa, 2014). In both developed and developing countries across the world, SMEs form an important fragment of the local economic system (Ismail, 2015). In Ghana for instance, SMEs constitute about 90 per cent of businesses (Abor and Quartey, 2010), provide over 80 per cent of employment (Abor and Quartey, 2010) and contribute over 50 per cent to GDP (Buame, 2004). In developed and developing nations, the contributions of SMEs have been faced with multiplicity of challenges such as lack of access to improved and affordable technology (Quaye, 2014), and finance (Abor and Quartey, 2010; Fraser et al., 2015). Quaye and Mensah (2017) identified these challenges as either from the internal or external environment. These challenges, coupled with socio-cultural, legal and political characteristics of the domestic economy, present opportunities for SMEs to develop innovative strategies to survive, grow and expand. As a result of the challenging business environment, SME owner–managers create opportunities when they are compelled to “think outside the box” to develop new and/or different marketing strategies to meet the changing strategies of vicious competitors, consumer and regulatory demands.

This article aims to evaluate whether the enablers top and middle management support and strategic purchasing facilitate the development of sustainable supply chain practices, as well as the effect of the latter on competitive advantage. Partial least squares structural equation modelling (PLS-SEM) was applied to test the proposed model based on a sample from companies operating in Colombia. The main hypotheses of the research were supported, implying that a suitable combination between internal enablers and the adoption of sustainable supply chain practices is important to pursue competitive advantage. However, the hypothesis for the expected effect of environmental practices wasn’t supported, suggesting that there is a win-win perspective between social practices in supply chains and competitive advantage in the context of emerging economies. And the analysis of the non-supported hypothesis is one of the contributions of the article.

Introduction

Currently, businesses and their supply chains are challenged to pursue their objectives and conduct their operations in an increasingly open and unstable world (Winston, 2014). This scenario is particularly demanding when considering stakeholders’ requests for economic, social and environmental performance within focal firms’ supply chains (Seuring and Muller, 2008). These requests are relative to the application of sustainability to supply chains, that is, sustainable supply chain management (SSCM) (Carter and Rogers, 2008). Recent literature suggests that in response to these requests, companies need to develop new specific capabilities (Bowen et al., 2001; Liu et al., 2013; Meixell and Luoma, 2015; Paulraj, 2011; Sarkis, 2012; Shi et al., 2012). The above considerations are particularly important for developing or emerging economies, where SSCM practices and corporate social performance have not been widely addressed by the academic and business communities, in comparison to studies conducted in developed countries (Jabbour et al., 2017; Fahimnia et al., 2015; Kusi-Sarpong and Sarkis, 2017; Mani et al., 2018; Silvestre, 2015a, b). Some of the factors that hinder the adoption of SSCM practices in developing countries are the high complexity and uncertainty of the business environment. In turn, these factors can be associated with institutional voids, corruption, poor infrastructure, poverty, inequality, and informal employment (Silvestre, 2015a). Thus, the study of SSCM in Latin America can address the need for empirical and theoretical work in a context that lacks proper research on the subject (de Morais, 2017, p. 33). In particular, empirical studies of specific enablers and outcomes of social sustainability adoption in developing countries remain rare (Köksal et al., 2018; Mani and Gunasekaran, 2018, p. 150). Consequently, this article aims to evaluate whether two enablers – top and middle management support, and strategic purchasing – facilitate the development of SSCM practices (considered organizational capabilities), as well as the effect of the latter on the CA of focal firms located in the city of Bogotá, Colombia. We intend to achieve these objectives by addressing the following research questions: RQ1: Do top and middle management support and strategic purchasing affect the adoption of SSCM practices in the context of a developing economy? RQ2: Does any competitive advantage accrue for firms that implement social and environmental supply chain management practices in the context of a developing economy?

Abstract

This study examined the innovation that leads to a competitive advantage in the frozen food business in the context of small-sized and medium-sized enterprises (SMEs). The research process consisted of three parts: 1) a literature study; 2) an empirical research study using questionnaires as a data collection tool; and 3) an analysis and conclusion of the research results using exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modelling (SEM). The findings showed that innovation enhanced the advantages in competition via external factors. These external factors were divided into two groups: micro-oriented factors and macro-oriented factors. The external factors at the micro level had more influence on the innovation development of the frozen food businesses than those at the macro level. The results showed that entrepreneurs, especially SME entrepreneurs, need to adapt and readily prepare themselves to face upcoming economic changes, which are about to occur not only at the global level but also at the regional and the country levels. In addition to the internal contexts within the organization, external factors are also important, especially those that will lead to the development of innovation.

Introduction

Small- and medium-sized enterprises (SMEs) play an important role in the economic and social development of a country. The roles of SMEs are reflected in the creation of jobs and income, and improved trade balance and are the main mechanisms in revitalizing and enhancing national economic advancement via income generation and job creation. In addition, SMEs are the starting point of development into an industry. Most large companies at present developed from SMEs (Oduntan, 2014, Robu, 2013). SMEs are a major type of company, accounting for 95–99 percent of all businesses, with additional job creation totalling more than 60–70 percent (The Organization for Economic Co-operation and Development [OECD], 2016). In 2015 in Asia, SMEs accounted for 96 percent of the total enterprises and created more than 50–85 percent of the total employment positions within each Asian country.

1- Introduction

2- Theoretical background, literature analysis and research hypotheses

3- Methodology

4- Results

5- Discussion and conclusions

References

Abstract

Based on his own experience in a number of companies, Lee (2004) posits that the Triple-A (agility, adaptability and alignment) is essential for supply chain (SC) management to achieve a sustainable competitive advantage (CA). However, there is a lack of empirical research that analyzes the Triple-A SC and its impacts on CA. The objective of the present work is to address this omission and to provide empirical evidence on this topic using a multiple-informant, international sample from eight developed countries. A consistent partial least squares structural equation model (PLSc) is used on data for 151 manufacturing plants in three industrial sectors to determine whether agility, alignment and adaptability have individual and/or joint effects on achieving a CA in SCs. In relation to the individual effects, different CAs are achieved by each of the Triple-A variables. SC adaptability has been shown to have a significant positive relationship with all the dimensions of CA. SC alignment affects most of these dimensions, but SC agility only affects financial CA and flexibility CA. This research does, however, confirm the positive relationship for the joint effect of the Triple-A SC variables and CA. The effects are significant on all the CA measures except quality. Important implications can be drawn for managers by showing how SC levers can be set to improve performance indicators.

Introduction

Firms with operations, suppliers and customers located in any part of the world have been forced to seek new ways to manage their operations outside the strict limits of the individual company, and the supply chain (SC) has come under increasing scrutiny. In the struggle to achieve the competitive advantages that enable rapid positioning in the customer’s preferences and greater cost-effectiveness, there has been a shift from competition between companies to a framework in which it is the SCs that compete with each other (Ketchen and Hult, 2007; Alfalla-Luque et al., 2013). Competitive advantage (CA) is considered to be a capability developed from a company’s attributes and resources that allows the firm to achieve a higher level of performance than the competition (Hayes and Wheelwright, 1984). In a new context of high SC competition, Lee (2004) made a major statement that contrasted with current knowledge on the matter: “Ceteris paribus, companies whose supply chains became more efficient and cost-effective did not gain a sustainable advantage over their rivals’. He asserted that “only supply chains that are agile, adaptable, and aligned provide companies with sustainable competitive advantage”. However, this assessment was based on his professional experience and he conducted no formal empirical research to confirm his hypothesis. In spite of its evident interest in the current SC global context, theory development in this topic has been very limited. When analyzing the literature (see Section 2), it can be observed that there are almost no studies on this topic and that none have analyzed the CA’s sustainability. Furthermore, it should be stressed that most studies on the topic have focused on the effect of Triple-A SC variables on different performance measurements (e.g., operational performance, organizational performance, cost performance, firm performance, SC performance, etc.) but not on CA indicators. In other words, they do not show any comparison of a company’s performance with its main competitors.

According to Resource Based Theory (RBT), firms that possess valuable, rare, imperfectly imitable, and non-substitutable resources gain competitive advantage, owing to firm heterogeneity in the distribution of these resources and their imperfect mobility across firms (Barney, 1991). However, along with resources, firms also need to possess organizational capabilities to coordinate and exploit these resources and therefore Barney in his subsequent work stressed the importance of organizational capability to exploit the resources a firm possesses in order to attain and sustain competitive advantage (Barney, 1997). These resources and capabilities constitute bundles of tangible and intangible assets that include management skills, organizational processes, information and knowledge that the firm controls (Barney, 2001). In addition to the emphasis on resources and capabilities, which represents an important element in understanding competitive advantage, there was an increasingly felt need to probe the evolution of capabilities and their underlying linkages closely. In line with this belief, some prior work (e.g. Black & Boal, 1994) has argued that the interactions (or linkages) between various tangible and intangible resources1 enable firms to develop higher level routines leading to sustainable competitive advantage. Winter (2000) considers these higher level routines to be analogous to organizational capabilities.2 Black and Boal (1994) argue that strategic resources that are part of a complex network can enhance, compensate, detract or substitute for each other, such that the combination of resources is important to gain competitive advantage that is sustainable in the long run. Therefore, understanding how the interactions of these resources take place and enable evolution of capabilities (or higher level routines), potentially provides an important perspective towards unpacking the drivers that lead to competitive advantage in firms. Concurrent to the development of the theoretical building blocks pertaining to RBT, there have been several empirical studies that have focused on measuring the attributes of resources and capabilities and examining their implications on competitive advantage. (e.g., Barney, 2001; Henderson & Cockburn, 1994). In addition, studies have also engaged with issues pertaining to how capabilities change over time and the implications of these capability related changes on competitive advantage (e.g., Barney, 2001; Levinthal & Myatt, 1994). However, despite the importance of the phenomena, relatively scarce evidence exists of studies that empirically establish the linkages between resources and capabilities and their evolution. There are even fewer studies in the context of emerging markets where firms engage with each other based primarily on previous relations and trust, rather than presence of formal organizational processes, routines and structures (Kumaraswamy, Mudambi, Saranga, & Tripathy, 2012).