寻找价值和维护竞争优势

Session8THESEARCHFORVALUEANDSUSTAINABLECOMPETITIVEADVANTAGE

SustainablecompetitiveadvantageTheultimatedeterminantsofsuccessandfailureinthefirm’ssearchforvalue.Arethereanyusefulgeneralisationstobemadewhichcanhelptoguidethestrategyprocess?SustainablecompetitiveadvantageandresourcebasedtheoryIntroduction::anexaminationofthesourcesofsustainabilityofprofitsWhyaresomefirmsabletosustainsuccessoveralongperiod?Porter’sapproachtobusinessperformance::competitiveadvantage.ThecapabilitiesapproachtofirmperformanceThenatureandsignificanceofcapabilitiesArchitecture,reputation,andinnovationThevalueofcapabilities:Aresourcebasedtheoryoffirmperformance::Peteraf’smodel.ConclusionsPart1:Porter’sapproachPorter’sfiveforcesapproach(industryattractiveness)seesindustryperformanceasafunctionofindustrystructure/conduct.(P&S,table10.1)BUTwithinindustriesfirmperformancevaries,Sowhatdeterminesrelativefirmperformance?In‘CompetitiveAdvantage’hetriedtoanswerthis?Porter,cont.‘Competitiveadvantage’arguesthatitdependsonthefirm’sabilitytomanagethecostdrivers/differentiationdriverssoastoproduceacostadvantageoradifferentiationadvantage.Butthisapproachhasproblemsandisincomplete.SomequestionsaboutPorterWhydoesthesuccessfulfirmnotbuytheunsuccessfulandteachithowtominimisecosts?Whydoesthesuccessfulfirmnotsellitsexpertiseincostreducingtolesssuccessfulfirms?Whydoesthesuccessfulfirmnotcutitspricesanddriveitscompetitorsoutofbusiness?Whydoestheunsuccessfulfirmnotbidfortheexecutive(s)inchargeofcostdriversfromthesuccessfulfirm?Thesedohappen:e.g.battlebetweenGeneralMotorsandVolkswagenfortheservicesofcostguruMr.Lopez.Porter’srecipeIfitispossibleforMichaelPortertodescribehowtocreateandsustaincompetitiveadvantagethensurelyallfirmshaveequalaccesstothisknowledgeoncePorterhascodifiedit.SocanitbeasourceofSCA?Bewarerecipes!Finally,lowcost/differentiationcan’tbetheultimatesource.Theultimatesourceissurelywhoorwhatproducesthelowcost/differentiationadvantage.BeyondPorterDoesanyoneofferabetterexplanationoftherootsofbusinessperformance?Inthe90’sacapabilitiesapproachemergedasa‘neworthodoxy’leadingtoadistinctive‘resourcebasedview’ofthefirmandstrategy.Part2:Thecapabilitiesapproach

Question:Whatcouldgiveaparticularfirmasustainableedgeoveritsrivals?AseriesofinfluentialarticlesintheHBRduringthe90’ssuggestedanewapproach(althoughitturnedoutitsoriginsweremuchearlier)PrahaladandHamel(1990):

corecompetenciesManagement’sabilitytoconsolidatetechnologyandproductionskillsintocompetenciessothebusinesscanadaptquicklytochangingopportunities/circumstances.Corecompetencies=collectivelearningoftheorganisationaboutprod/tech/markets.

e.g.Sony’sminiaturisationskills.Competencieshavetobebuiltoveralongperiod.Theyaredifficulttoidentifypreciselyandhardtoimitate.Manyfirmsfailtoidentifytheirowncorecompetenciesandsofailtonurturethemproperlyorexploitthemfully.Stalk,Evans,andShulman(1992):capabilitiesCompetitiveadvantageisbasedontheabilitytorespondtoevolvingopportunitieswhichdependsonbusinessprocessesorcapabilities.Businesssuccessinvolveschoosingtherightcapabilitiestobuild,managingthemcarefully,andexploitingthemfully.

e.g.Honda,Canon.Chandler(1990):initialriskyinvestmentsChandler(1990):successfulgiantssuchasIBMandBayerderivefromtheinitialheavyandriskyinvestmentsinbuildingorganisationalknowledgeandcapabilitieswhichallowedthemtoexploittheopportunitiesavailabletoexploitscaleandscopeeconomies.CollisandMontgomery(1995):competingonresourcesCompetitiveadvantagederivesultimatelyfromtheownershipofavaluableresource.Superiorperformancederivesfromdevelopinga‘competitivelydistinct’setofresourcesanddeployingtheminawellconceivedstrategy.Resourcescanbephysical,intangible,ororganisationalcapabilities.Example:MarksandSpencer(poortiming!)JohnKay(1993):Distinctivecapabilities.Inhisbestseller,‘‘Thefoundationsofcorporatesuccess’Kayarguesthatthesourceofcompetitiveadvantageisthecreationandexploitationofdistinctivecapabilities.Thevalueofanyadvantagecreateddependsonitssustainabilityanditsappropriability.Kayprovidesadetailedanalysisofthis(seealsoP&S)DistinctivecapabilitiesKayidentifiesonlythreebasictypesofdistinctivecapability:CorporateArchitectureInnovationReputation.DistinctivecapabilitiesWhatisitaboutthesethingsinparticular?Difficulttobuildandmaintain.Difficulttocodify/makeintorecipes.Difficulttocopy/emulate.Can’’tsimplybebought‘‘offtheshelf’’.StrategicassetsHealsodiscussesmarketdominance(monopoly)basedontheownershipofstrategicassetsasasourceofsuccess.Naturalmonopoliessuchasutilitynetworks,orlicensedmonopoliessuchasthenationallottery.Andthosebasedonheavysunkcostswhichdiscouragechallengersforthefirstmover.Buthearguesthatinthesecaseitisessentiallystructuralfactorsthatcountnotdistinctivecapabilities.Theremayofcourseberoomfordebateinsomecases.ArchitectureasadistinctivecapabilityConcernsorganisationaleffectivenessinthesearchforvalue.Connectsbacktothediscussionofcorporateobjectivesandtheco-operationneededtogetthingsdoneinP&Schap4.Howtofocusindividualsonachievingorganisationalgoals.ArchitectureThenetworkofcontractualrelationshipswhichdefinesthefirm.Thecapacityoforganisationsto:1.Createandstoreorganisationalknowledgeandroutines2.Promotemoreeffectiveco-operationbetweenthemembers.3.Achieveanopenandeasyflowofinformationbetweenmembers.4.Adaptrapidlyandflexibly.ArchitectureArchitectureislargelyabouthowyouorganisetogetthingsdoneaseffectivelyaspossible.ButNBitalsoinfluenceswhatyouchoosetodo(strategy)inthefirstplace.Because?Architectureisaboutorganisationalform,incentivemechanisms,workorganisation,performanceevaluation,andgovernance.Architecturee.g.IBMinitsheyday,MarksandSpencer(backwhen!),LiverpoolFootballClub.e.g.ManyJapanesefirms:theJapaneseemploymentsystem,itssuppliernetworks,thecloserelationsbetweenindustryandfinance,thegreatemphasisonco-operationandcollaboration,thedevelopmentoflongtermcommercialrelationships,andthegenerallyhigherleveloftrustwhichencouragesco-operationArchitectureNowaspecialisedstudyarea.Seeforexample,Brickley,Smith,andZimmerman:EconomicsandOrganisationalArchitecture.ReputationasadistinctivecapabilityThisisaboutconveyinginformationtoconsumersaboutquality.Butitisn’tequallyimportantforallgoodsandservices.Itappliestoaparticularcategoryofgoodscalled,Longtermexperiencegoods.Thesearegoodswhereproductqualityisvitaltotheconsumerbutwhereitisdifficultfortheconsumertoestablishqualityexceptthroughtimeandexperience.ReputationKaymentionscarhireservices,legalservices,accountancyservices,funeralservices(?),consumerdurables.Addvitaminpills,roofingservices,pensionfunds,and………Allstudentsareveryfamiliarwiththeprobleminvolved.ReputationProblemisthatyouwantquality,butthatqualitytakestimetomanifestitself.Allsupplierswill‘‘guaranteesatisfaction’’.Howcanyoudistinguishbetweenthem?Ifdifficultthenconsumerswillassumelowqualityandpayonlylowprices.Ifyoucanconvincethemyoucanobtainapremiumpriceforqualityassurance.ReputationSellingonreputationissayingwehavemadeaninvestmentinanassetsowehavealottoloseifwefailtosatisfy.Soyoucantrustus,butnotthe‘‘hitandrun’supplierswhosellon(low)pricealone.Howmightitbedone.Longevity(est.1768sortofthing).Warranties.Advertising?AdvertisingandreputationHeavyadvertisingmaybeaway.Advisasunkcostwhichimpliescommitmenttotheservice.Thereissomethingtolose.Evidenceisthat‘‘longtermexperience’’goodsdohavethehighestadv/salesratio(5%).(B.S.R.1992).ReputationanddiversificationNoteforlater,ReputationmightbeabasisforgrowththroughdiversificationbutKaynotesthatanexpensivelycreatedreputationcanbedamagedbyunwisediversificationwhenfirmsstrayintoareastheydon’’tfullyunderstand.InnovationasadistinctivecapabilityAcapacityforloweringcostsorimprovingitsproductsorintroducingnewproductsaheadofitscompetitors.Innovationbyitselfasasourceofcompetitiveadvantageisactuallyquiterare.Innovationisverydifficult.Itisuncertain,anditishardtomanageproperly.Therearenorecipes.ItcanbedifficultforfirmswhichinvestinR&Dtosecureorappropriateallthereturns.Sobeingabletodoitwellwillundoubtedlygiveyouagoodedge.Howevermanyfirmswhichseekcompetitiveadvantagebythisroutefail.TheValueofCapabilitiesDistinctivecapabilitiesgeneratesuccesswhichattractscompetitors.Theirvaluedependsontheirsustainabilityandtheappropriabilityofthevaluetheygenerate.(seealsoCollisetalHBR95)Theseinturndependonthefollowingfactors:TheValueofCapabilitiesTransparency:howeasyisittoidentifyandunderstand?J.managementtechniques?Replicability:howeasytoimitate/replicate?Ateamformationsuchas4-4-2iseasy,butGerman‘‘efficiency’’orBrazilian‘‘flair’’ismoredifficult.Substitutability:Howeasytofindasubstitutefor.Sonyo/mofinnovation,M&Ssupplychainorganisation.TheValueofCapabilitiesWhocapturestheincomestreamfromthecapability?Theorganisationortheunderlyingresources.Thisistheissueofappropriability.Tobevaluabletotheorganisationthecapabilityhastobeimmobile/organisationallyspecific.Notabletowalk!AppropriabilityResourcessuchaspeoplearemarketableandcancapturetheirfullmarketvalue.Sotheorganisation’scapabilityhastobemorethanthesumofits(marketable)parts.TakeManchesterUnitedandtheRoyKeaneeffect(£50,000perweek!).TobeavaluablebusinessMUmustproduceateamcapabilitybeyondthemarketvalueofitsexpensiveplayersandcoaches.TosumupThevalueoftheorganisationscapabilityrequiresthatthecompetition:Can’tseeiteasily.Can’timitateit.Can’tfindasubforit.Can’tjustbuyit.IsolatingmechanismsNamegiventobarrierspreventingthereplicationoforganisationscapabilities.Causalambiguity.Timecompressiondiseconomies.Extracostsofaccumulatingresourcesandcapabilitiesquicklytotakeonafirstmover.PART3:RESOURCEBASED‘‘THEORY’’OFTHEFIRMAdistinctiveresourcebased‘‘theory’’ofthefirmhasemergedtryingtoformalisethecapabilitiesapproach.The““resource-based”approachisconcernedwiththenatureofthefirm’’sresourcesandhowtheseresourcesarecombinedintocapabilities.KeyexampleisPeteraf(1993).Herapproachisoutlinedbelowandsummedupinthisfigure.NotesheusesthetermRENTcommoninUSwritingtoconnotetheresultofsustainablecompetitiveadvantage.TheLinnexampleisfromastudentcasestudy.PeterafmodelHeterogeneityEx-postlimits

tocompetitionImperfect

mobilityEx-antelimits

tocompetitionRentsobtainedRentscaptured

bythefirmRentssustainedRentsnotoffset

bybuildingcostsCompetitive

advantageCompetitiveAdvantageEx-postlimitstocompetitionEx-antelimitstocompetitionHeterogeneityImperfectMobilityTheindustryismadeoffirmswithaccesstodifferentresourcesandskills.Linnhasparticulardistinctivecompetencies.SpecialistknowledgeandreputationSharedspecialistknowledgeandreputationLinnhasdemonstratedanabilitytoleveragethepotentialofexistingtechnologiesPeteraf’smodel-LinnProductsALLTHESELEADTOSUSTAINABLECOMPETITIVEADVANTAGETHROUGHDIFFERENTATIONCompetitiveAdvantagealaPeterafAfirmissaidtohaveacompetitiveadvantagewhenitcan:achieverents:whichrequiresresourceheterogeneitybetweenfirms(somebetterbundlesthanothers).enjoyrentsthatarenotoffsetbythecostsofachievingasuperiorsetofresources:whichrequiresexantelimitstocompetitionforthoseresources.appropriatethoserentsforthefirm:whichrequiresimperfectresourcemobility.sustainthoserents:whichrequiresex-postlimitstocompetition.Heterogeneity:Bundlesofresourcesandcapabilitiesareheterogeneousacrossfirms.Heterogeneityimpliesthatfirmswithsuperiorresources/capabilitieswillearnsuperiorreturns.Animportantclassofresourcesarethosewhicharelimitedintheshortrunbutmayberenewedandexpandedwithinfirmsthatusethem.PrahaladandHamel(1990)arguethatcorecompetencies-particularlyknowledge-basedresources-areenhancedastheyareusedbecauseoflearning.Ex-postlimitstocompetitionForceswhichlimitcompetitionfromimitators.Thesearisefromsourcesalreadydiscussed:Imperfectimitability,replicability,andsubstitutabilityofresources/capabilitiesisolatingthefirmfromchallengers.ExantelimitstocompetitionThesourceofafirm’’srentsisasuperiorresourceposition.Butimaginethesituationbeforeanyfirmhasachievedthisposition.Ifmanyfirmsrecogniseditspotential,acompetitivestrugglewouldensuetoobtaintheresourcesandbuildthecapabilitiestooccupythatposition.Thisprocesswouldcompeteawayallrentsthatcouldbeobtainedfromoccupyingtheposition.Forexample,NorthSeaOilfields.ManchesterUnitedteam!NationalLotterylicence.Sonylicencefortransistor.Thescriptfor‘FourweddingsandaFuneral’EntrepreneurshipandrentSoafirmneedstheforesighttoacquireresourcesandbuildcapabilitiesintheabsenceofsuchcompetition.Thisrequiresthepresenceofuncertaintyandincompleteinformationandawillingnesstotakerisks.TheessenceofsuccessfulENTREPRENEURSHIPisofcourseforesightandtakingadvantageofuncertaintyandincompleteinformationbeforesomeoneelsedoes.SowhatPeterafseemstobesayinghereissimplythatallrentsbeginwithanentrepreneurialact.Whic