Competitive Advantage on the Road Again: Exploring Nuances through a Conceptual Review and Future Research Avenues

Authors: Abdolali Mortazavi, Faegheh Taheran

Abstract:

By giving an overview of previous arguments and findings concerned with the concept of competitive advantage, first, we define the overall concept of competitive advantage and discuss nuances of understanding such an important and strategic idea. Finally, by considering the major concerns of marketing academia, including globalization, Artificial Intelligence (AI)-based technologies, consumer well-being, and internal coopetition between a firm’s units, fruitful avenues to be explored by future studies are presented in the form of research propositions. In the end, relevant gaps mentioned by numerous studies that are worth investigating are demonstrated.

Keywords: Artificial Intelligence, competitive advantage, consumer well-being, coopetition, globalization, literature review, temporary competitive advantage.

References:

[1] M. E. Porter, “Technology and competitive advantage,” Journal of business strategy, vol. 5, no. 3, pp. 60–78, 1985.
[2] G. S. Day and R. Wensley, “Assessing advantage: a framework for diagnosing competitive superiority,” Journal of marketing, vol. 52, no. 2, pp. 1–20, 1988.
[3] M. E. Porter, “The competitive advantage of nations,” Harvard business review, vol. 73, p. 91, 1990.
[4] J. Barney, “Firm resources and sustained competitive advantage,” Journal of management, vol. 17, no. 1, pp. 99–120, 1991.
[5] P. G. Warr, “Comparative and competitive advantage,” Asian-Pacific Economic Literature, vol. 8, no. 2, pp. 1–14, 1994.
[6] S. Suprihono, A. Prasetya, and Y. Abdillah, “Improving firm performance through Competitive Advantage, differentiation strategy and cost leadership: A Literature Review,” International Journal of Artificial Intelligence Research, vol. 6, no. 1.1, 2023.
[7] N. Kumar, L. Scheer, and P. Kotler, “From market driven to market driving,” European management journal, vol. 18, no. 2, pp. 129–142, 2000.
[8] R. Simić, B. Bolfek, and A. Stoić, “Document management system as source of competitive advantage,” Proceedings of New ways in Manufacturing Technologies 2008, 2008.
[9] H. Ma, “Competitive advantage and firm performance,” Competitiveness Review: An International Business Journal, 2000.
[10] W.-C. Wang, C.-H. Lin, and Y.-C. Chu, “Types of competitive advantage and analysis,” International Journal of Business and Management, vol. 6, no. 5, p. 100, 2011.
[11] W. E. Fulmer and J. Goodwin, “Differentiation: begin with the consumer,” Business Horizons, vol. 31, no. 5, pp. 55–63, 1988.
[12] M. Acquaah, “Business strategy and competitive advantage in family businesses in Ghana: The role of social networking relationships,” Journal of developmental entrepreneurship, vol. 16, no. 01, pp. 103–126, 2011.
[13] R. S. Schuler and I. C. MacMillan, “Gaining competitive advantage through human resource management practices,” Human resource management, vol. 23, no. 3, pp. 241–255, 1984.
[14] M. E. Porter, V. E. Millar, and others, “How information gives you competitive advantage.” Harvard Business Review Reprint Service, 1985.
[15] N. S. Davcik and P. Sharma, “Marketing resources, performance, and competitive advantage: A review and future research directions,” Journal of Business Research, vol. 69, no. 12, pp. 5547–5552, 2016.
[16] R. M. Grant, “The resource-based theory of competitive advantage: implications for strategy formulation,” California management review, vol. 33, no. 3, pp. 114–135, 1991.
[17] S. G. Bharadwaj, P. R. Varadarajan, and J. Fahy, “Sustainable competitive advantage in service industries: a conceptual model and research propositions,” Journal of marketing, vol. 57, no. 4, pp. 83–99, 1993.
[18] I. Cockburn and Z. Griliches, “The estimation and measurement of spillover effects of R&D investment-industry effects and appropriability measures in the stock market’s valuation of R&D and patents,” The American Economic Review, vol. 78, no. 2, pp. 419–423, 1988.
[19] C. Prahalad and G. Hamel, “The core competence of the corporation’ Harvard Business Review,” Harvard business review, pp. 79–91, 1990.
[20] H. Harmsen, K. G. Grunert, and F. Declerck, “Why did we make that cheese? An empirically based framework for understanding what drives innovation activity,” R&d Management, vol. 30, no. 2, pp. 151–166, 2000.
[21] M. Dasgupta, A. Sahay, and R. Gupta, “Technological innovation and role of technology strategy: Towards development of a model,” in 9th global conference on business & economics, 2009, pp. 1–34.
[22] G. Knight, “International Business Strategy and Managerial Skills.” Prentice Hall. USA, 2007.
[23] S. E. Jackson and R. S. Schuler, “Understanding human resource management in the context of organizations and their environments,” Annual review of psychology, vol. 46, no. 1, pp. 237–264, 1995.
[24] C. M. Christensen, “Competitive advantage,” mit sloan management review, vol. 42, no. 2, pp. 105–109, 2001.
[25] S. Akhtar, D. Z. Ding, and G. L. Ge, “Strategic HRM practices and their impact on company performance in Chinese enterprises,” Human Resource Management: Published in Cooperation with the School of Business Administration, The University of Michigan and in alliance with the Society of Human Resources Management, vol. 47, no. 1, pp. 15–32, 2008.
[26] P. Petison and L. M. Johri, “Driving harmony: philosophy of Toyota Motor Thailand,” Strategic Direction, vol. 22, no. 11, pp. 3–5, 2006.
[27] O. F. Bustinza, A. Z. Bigdeli, T. Baines, and C. Elliot, “Servitization and competitive advantage: the importance of organizational structure and value chain position,” Research-Technology Management, vol. 58, no. 5, pp. 53–60, 2015.
[28] K. Ohmae, “The strategic triangle: A new perspective on business unit strategy,” European Management Journal, vol. 1, no. 1, pp. 38–48, 1982.
[29] J. A. Black and K. B. Boal, “Strategic resources: Traits, configurations and paths to sustainable competitive advantage,” Strategic management journal, vol. 15, no. S2, pp. 131–148, 1994.
[30] R. Hall, “A framework linking intangible resources and capabiliites to sustainable competitive advantage,” Strategic management journal, vol. 14, no. 8, pp. 607–618, 1993.
[31] R. E. Caves, “Economic analysis and the quest for competitive advantage,” The American Economic Review, vol. 74, no. 2, pp. 127–132, 1984.
[32] J. B. Barney, “Organizational culture: can it be a source of sustained competitive advantage?,” Academy of management review, vol. 11, no. 3, pp. 656–665, 1986.
[33] C. Giachetti, J. Lampel, and S. L. Pira, “Red queen competitive imitation in the UK mobile phone industry,” Academy of Management Journal, vol. 60, no. 5, pp. 1882–1914, 2017.
[34] G. B. Dagnino, P. M. Picone, and G. Ferrigno, “Temporary competitive advantage: a state-of-the-art literature review and research directions,” International Journal of Management Reviews, vol. 23, no. 1, pp. 85–115, 2021.
[35] G. Pacheco-de-Almeida, “Erosion, time compression, and self-displacement of leaders in hypercompetitive environments,” Strategic Management Journal, vol. 31, no. 13, pp. 1498–1526, 2010.
[36] V. Lenarduzzi and D. Taibi, “MVP explained: A systematic mapping study on the definitions of minimal viable product,” in 2016 42th Euromicro Conference on Software Engineering and Advanced Applications (SEAA), IEEE, 2016, pp. 112–119.
[37] A. A. Lado, N. G. Boyd, and P. Wright, “A competency-based model of sustainable competitive advantage: Toward a conceptual integration,” Journal of management, vol. 18, no. 1, pp. 77–91, 1992.
[38] J. B. Barney, “Looking inside for competitive advantage,” Academy of Management Perspectives, vol. 9, no. 4, pp. 49–61, 1995.
[39] R. E. Caves and M. E. Porter, “Market structure, oligopoly, and stability of market shares,” The Journal of Industrial Economics, pp. 289–313, 1978.
[40] R. Varadarajan, “Customer information resources advantage, marketing strategy and business performance: A market resources based view,” Industrial Marketing Management, vol. 89, pp. 89–97, 2020.
[41] S. D. Hunt and R. M. Morgan, “The comparative advantage theory of competition,” Journal of marketing, vol. 59, no. 2, pp. 1–15, 1995.
[42] R. Amit and P. J. Schoemaker, “Strategic assets and organizational rent,” Strategic management journal, vol. 14, no. 1, pp. 33–46, 1993.
[43] C. E. Helfat and M. A. Peteraf, “The dynamic resource-based view: Capability lifecycles,” Strategic management journal, vol. 24, no. 10, pp. 997–1010, 2003.
[44] T. Levitt, “Marketing myopia,” Journal of Library Administration, vol. 4, no. 4, pp. 59–80, 1984.
[45] C. M. Fabrizio, F. Kaczam, G. L. de Moura, L. S. C. V. da Silva, W. V. da Silva, and C. P. da Veiga, “Competitive advantage and dynamic capability in small and medium-sized enterprises: A systematic literature review and future research directions,” Review of Managerial Science, vol. 16, no. 3, pp. 617–648, 2022.
[46] R. K. Chandy, G. V. Johar, C. Moorman, and J. H. Roberts, “Better marketing for a better world,” Journal of Marketing, vol. 85, no. 3. SAGE Publications Sage CA: Los Angeles, CA, pp. 1–9, 2021.
[47] D. L. Hoffman, C. P. Moreau, S. Stremersch, and M. Wedel, “The rise of new technologies in marketing: A framework and outlook,” Journal of Marketing, vol. 86, no. 1. SAGE Publications Sage CA: Los Angeles, CA, pp. 1–6, 2022.
[48] A. Mortazavi, F. F. Taheran, and D. Amiri, “Behind Chatbot Dialogues: The Power of Message Length Similarity and its Effect on Attitudes Toward Chatbot,” Available at SSRN 4712679, 2024, Online. Available: https://ssrn.com/abstract=4712679
[49] S. Kotha, V. P. Rindova, and F. T. Rothaermel, “Assets and actions: Firm-specific factors in the internationalization of US Internet firms,” Journal of International Business Studies, vol. 32, pp. 769–791, 2001.
[50] C. M. Sousa and F. Bradley, “Cultural distance and psychic distance: refinements in conceptualisation and measurement,” Journal of Marketing Management, vol. 24, no. 5–6, pp. 467–488, 2008.
[51] M. Mureithi, “Self-destructive competition in cellular: regulatory options to harness the benefits of liberalisation,” Telecommunications Policy, vol. 27, no. 1–2, pp. 11–19, 2003.
[52] B. J. Jaworski and A. K. Kohli, “Market orientation: review, refinement, and roadmap,” Journal of Market-Focused Management, vol. 1, pp. 119–135, 1996.
[53] M. A. Hossain, S. Akter, and V. Yanamandram, “Why doesn’t our value creation payoff: Unpacking customer analytics-driven value creation capability to sustain competitive advantage,” Journal of Business Research, vol. 131, pp. 287–296, 2021.
[54] A. Parasuraman, “Reflections on gaining competitive advantage through customer value,” Journal of the Academy of marketing Science, vol. 25, pp. 154–161, 1997.
[55] F. Huber, A. Herrmann, and R. E. Morgan, “Gaining competitive advantage through customer value oriented management,” Journal of consumer marketing, vol. 18, no. 1, pp. 41–53, 2001.
[56] V. Kumar, D. Ramachandran, and B. Kumar, “Influence of new-age technologies on marketing: A research agenda,” Journal of Business Research, vol. 125, pp. 864–877, 2021.
[57] E. M. Denga, N. R. Vajjhala, and S. Rakshit, “The Role of Digital Marketing in Achieving Sustainable Competitive Advantage,” Digital Transformation and Internationalization Strategies in Organizations, pp. 44–60, 2022.
[58] S. Krakowski, J. Luger, and S. Raisch, “Artificial intelligence and the changing sources of competitive advantage,” Strategic Management Journal, 2022.
[59] W. Tsai, “Social structure of ‘coopetition’ within a multiunit organization: Coordination, competition, and intraorganizational knowledge sharing,” Organization science, vol. 13, no. 2, pp. 179–190, 2002.
[60] X. Luo, R. J. Slotegraaf, and X. Pan, “Cross-functional ‘coopetition’: The simultaneous role of cooperation and competition within firms,” Journal of marketing, vol. 70, no. 2, pp. 67–80, 2006.
[61] T. text provides general information S. assumes no liability for the information given being complete or correct D. to varying update cycles and S. C. D. M. up-to-D. D. T. R. in the Text, “Topic: Service sector of the U.S.,” Statista. Accessed: Apr. 10, 2023.
[Online]. Available: https://www.statista.com/topics/7997/service-sector-of-the-us/
[62] S. L. Vargo and R. F. Lusch, “Evolving to a new dominant logic for marketing,” Journal of marketing, vol. 68, no. 1, pp. 1–17, 2004.
[63] W. Mitchell, P. Dussauge, and B. Garrette, “Alliances with competitors: how to combine and protect key resources?,” Creativity and innovation management, vol. 11, no. 3, pp. 203–223, 2002.
[64] V. L. Thomas, K. Fowler, and F. Taheran, “How social media influencer collaborations are perceived by consumers,” Psychology and Marketing, vol. 41, no. 1, pp. 168–183, Jan. 2024, doi: 10.1002/mar.21918.
[65] M.-H. Huang and R. T. Rust, “A strategic framework for artificial intelligence in marketing,” Journal of the Academy of Marketing Science, vol. 49, pp. 30–50, 2021.
[66] R. Bintara, W. Yadiati, M. W. Zarkasyi, and N. D. Tanzil, “Management of Green Competitive Advantage: A Systematic Literature Review and Research Agenda,” Economies, vol. 11, no. 2, p. 66, 2023.
[67] Y.-S. Chen, “Green organizational identity: sources and consequence,” Management decision, 2011.