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    The relationship between competitive intelligence and company success : a thesis presented in partial fulfilment of the requirements for the degree of Masters of Business Studies in Marketing at Massey University
    (Massey University, 1999) Fourie, Wilna Amoritha
    The past few years have seen a growing interest in competitive intelligence amongst academics and practitioners. This growth has been affected by a high degree of scepticism regarding the ability of competitive intelligence to effectively support business performance. The objectives of this study was to determine whether a relationship exists between competitive intelligence activities and company performance in a sample of New Zealand companies; to determine the level of competitive intelligence activities undertaken in this sample; and to determine the impact of the results on marketing strategy in general. To achieve this a mail survey was conducted and results based on a sample of 125 strategic business unit managers from various sized manufacturing, importing and distributing companies, in four respective industries of the Chemical industry sector. A composite competitive intelligence score was developed that included the following elements of the competitive intelligence cycle, namely: gathering activities, focus of intelligence, analysing activities, dissemination channels, use of intelligence, top management involvement and counter intelligence. Performance measures were self reported measures of growth over a three-year period (1994-1997). Although the results revealed a significant positive correlation between the composite competitive intelligence score and market share growth, it was a weak relationship with only three percent of the variance in market share explained by the composite competitive intelligence score (assuming this was the direction of causation). The competitive intelligence approach in the Chemical industry sector was found to be an ad hoc approach, characterised by informality and uncoordinated actions. Strategic business unit managers indicated that, even though using a predominantly informal approach, competitive intelligence activities: ▪ Improved their understanding of the dynamics of the market place. ▪ Improved implementation of new products or projects. ▪ Led to concrete actions. ▪ Helped shape policies. Although above mentioned benefits did not directly explain the variance in market share and only provide weak empirical support for an investment in competitive intelligence, it could indirectly play a significant role in the formulation of marketing strategies and ultimately in the creation and maintaining of a competitive advantage for a company.
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    Performance of the Sri Lankan value-added tea producers : an integration of resource and strategy perspectives : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Agribusiness at Massey University, Palmerston North, New Zealand
    (Massey University, 2001) Ariyawardana, Anoma
    This research examined the status of sources of competitive advantage and their influence on the performance of value-added tea producers in Sri Lanka using the strategy and resource perspectives of the competitive advantage paradigm. It aimed to extend the literature on competitive advantage by examining whether these perspectives influence firm performance within an agribusiness sector of a developing country. Both strategy and resource perspectives and the relationship between them were considered in the analytical framework. Primary data came from 40 of the 47 value-added tea producing firms registered at the Ceylon Chamber of Commerce in 1999. Initial assessment of firm characteristics revealed high heterogeneity among the firms in experience, involvement with businesses other than tea, market focus, managerial talent, involvement in the overall tea industry and branding. Multi-method, multivariate statistical techniques were performed based on the value-added tea industry segment-specific sources of competitive advantage. Core resources based on the dimensions scale, skill, brand equity, managerial talent, experience effects and backward integration, and core strategies based on the dimensions production, marketing, promotion, product development, quality and competitive strategies were selected. Initial factor analyses revealed four distinctive resource and six distinctive strategy patterns. Strategic groups formed based on both these patterns showed that Ward's method outperformed both average linkage and centroid methods. Three groups were identified: private labelling oriented (strategic group one), niche market oriented (strategic group two) and mass market oriented (strategic group three) based on the nature of the firms comprising the groups. Discriminant analysis showed that the three strategic groups differ significantly in their resource and strategy patterns, with the third group being the strongest with respect to both. Kruskal-Wallis one-way analysis of variance and chi-square procedures indicated that this group was associated with strong mobility barriers and the greatest performance differences. No performance differences were apparent between the first and the second groups. The significant differences across these three strategic groups in terms of both resource - and strategy-based sources of competitive advantage - demonstrated the importance of incorporating a mix of variables in strategic group formation. Although canonical analysis revealed a significant relationship between strategy and resource patterns, resource patterns explained only 21 per cent of the variance of the strategy patterns. The analysis indicated that the Sri Lankan value-added tea producing firms' choice of, and ability to perform, a particular strategy are weakly associated with their core resource strength. Factor analysis regressions indicated that both resource and strategy perspectives contribute to explaining firm performance. However, the explanatory power of the model based on the strategy perspective was shown to be weaker than that of the models based on the resource and integrated resource and strategy perspectives. The integrated model based on resource and strategy perspectives outperformed the other models. Resource-based sources of competitive advantage - skill, managerial experience, size of firm, brand awareness and backward integration - showed a positive influence on firm performance. Of the strategy-based sources of competitive advantage - tea imports, outward foreign direct investments, high perceived competitive advantage, proportion of tea exports, adoption of the Lion logo and the use of trade fairs - showed a positive influence on firm performance. Although prior research and theory have emphasised brand marketing, advertising and product development strategies in creating a unique position and meeting competitive challenges, none explained firm performance. Derived regressions of the three strategic groups revealed that resource patterns have more consistent relationships with firm performance across the groups than do strategy patterns. The level of influence of resource and strategy patterns on firm performance of these three strategic groups was shown to be different. These revealed that any assistance programmes that aims at developing sources of competitive advantage and enhancing firm performance should be created by considering strategic group differences.
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    Strategy-making processes of small and medium enterprises in New Zealand : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Strategic Management at Massey University (Albany), New Zealand
    (Massey University, 2005) Verreynne, Martie-Louise
    The concept of strategy-making in small and medium enterprises (SMEs) has been the source of much debate. Received wisdom suggests that strategy-making does not take place in SMEs. or is at best limited, often only for the purpose of attaining finance. Moreover, there is mixed evidence regarding the relationship between strategy-making in SMEs and firm performance. This thesis empirically addresses these hotly contested issues by asking: What are the strategy-making processes of SMEs in New Zealand and how are these related to firm performance? In order to answer this question the thesis uses the general literature on strategy-making processes and builds a framework tailored for SMEs drawing from the literature on strategic planning by SME scholars. Propositions derived from the framework are then empirically tested in a cross-industry sample of 477 SMEs in New Zealand. Several important conclusions are drawn in this study. First, through confirmatory factor analysis, four modes of strategy-making process emerge as relevant to SMEs, namely the simplistic, adaptive, participative, and intrapreneurial modes. Second, these modes are related to firm performance. Causal modelling indicates that adaptive and participative strategy-making contribute to firm performance, while simplistic strategy-making results from firm performance. The intrapreneurial mode shows little relation with firm performance, unless it is used in combination with a differentiation strategy. Third, firms with capabilities in several modes of strategy-making outperform firms that are only good at one or no modes of strategy-making. Fourth, the relationships between firm performance and the modes of strategy-making employed are influenced by a variety of context factors such as the firm's structure and competitive environment as well as the business strategics used. Fifth, and most fundamentally, the study demonstrates that SMEs do make strategy.
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    How corporate strategy contributes to firm performance : a cross-sectional study of resource governance decision making in US firms : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Strategic Management at Massey University, Palmerston North
    (Massey University, 2006) Monroe, Sondra Athene
    Corporate strategy has been a neglected topic in both theoretical and empirical discussions on superior firm performance. In addition to using competitive strategy to attain sustainable competitive advantage, firms should also focus on achieving a corporate level measure of performance, namely, persistent superior firm performance. The resource based theory paradigm suggests that factors which lead to superior firm performance are largely endogenous to the firm. Corporate strategy is one such factor. Empirical evidence has shown that corporate strategy matters. It has a small but significant influence on the variance of both business unit performance and firm performance. This research extends current knowledge by determining, firstly, if corporate strategy could be used to distinguish successful firms from nonsuccessful firms and, secondly, if so, how does corporate strategy actually influence firm performance. Fifteen Fortune 1000 US firms were categorised into three subpopulations based on persistent superior, average and inferior levels of performance. Eighteen indicators representing both excellence in corporate strategy and the incidence of corporate strategy were collected through the content analysis of Wall Street Journal articles from 1980 to 2004. Various inferential statistical techniques were conducted to provide a broad profile of findings. The frequency of resource governance decisions was found to distinguish the persistent superior firm performance category from both the persistent average and inferior firm performance categories. The corporate level decision making skill perspective provides an explanation for this empirical evidence. Superior performing firms, through the use of superior corporate level decision making skills, are able to simplify resource governance decision making (e.g., decision making rules). This simplification results in superior resource governance decisions being made, lowering the incidence of resource governance decisions. This research extends resource based theory by providing empirical evidence of the importance of resource governance decisions in achieving persistent superior firm performance. This research also integrates the concept of superior corporate level decision making skills into existing resource based theory. The research has implications also for both theoretical and practitioner literatures as it redefines corporate strategy. It shows that corporate strategy matters to firm performance, and importantly, it shows why corporate strategy matters.
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    Strategies, uncertainty and performance of small business startups
    (Kluwer, 2000) Van Gelderen, Marco; Frese, Michael; Thurik, Roy
    Personal strategies of owners/founders of small business startups are related to performance and to environmental uncertainty. This is done using a longitudinal data set. Personal strategies are operationalized by a behavioral measure of the manners in which small business founders deal with situations. The results suggest a dynamic process between strategy and performance. Business owners that perform poorly employ a Reactive Strategy, with poor performance leading to increased use of reactive behavior. High performing business owners start out focussing on the most crucial issues (Critical Point Strategy), with high performance leading to a more top-down (Complete Planning) approach. These relations are controlled for characteristics of the environment of the firm. Strategy use is dependent upon the type and level of environmental uncertainty. Complete Planning strategy is used less frequently in a fast changing environment and more often in a complex environment. Use of Opportunistic Strategy is negatively related to the complexity of the environment, while the Reactive Strategy is used more frequently in a non-munificent environment.
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    Success and risk factors in the pre-startup phase
    (Springer, 2006) Van Gelderen, Marco; Thurik, Roy; Bosma, Niels
    Why does one person actually succeed in starting a business, while a second person gives up? In order to answer this question, a sample of 517 nascent entrepreneurs (people in the process of setting up a business) was followed over a three-year period. After this period, it was established that 195 efforts were successful and that 115 startup efforts were abandoned. Our research focuses on estimating the relative importance of a variety of approaches and variables in explaining pre-startup success. These influences are organized in terms of Gartner's (1985) framework of new venture creation. This framework suggests that start-up efforts differ in terms of the characteristics of the individual(s) who start the venture, the organization that they create, the environment surrounding the new venture, and the process by which the new venture is started. Logistic regression analyses are run for the sample as a whole as well as for subgroups within the sample, namely for those with high ambition vs. low ambition and for those with substantial vs. limited experience. The results point to the importance of perceived risk of the market as a predictor of getting started vs. abandoning the startup effort.
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    Learning opportunities and learning behaviours of small business starters: Relations with goal achievement, skill development and satisfaction
    (Springer, 2005) Van Gelderen, Marco; Van der Sluis, Lidewey; Jansen, Paul
    Learning is a vital issue for small business starters, contributing to short term and long term business performance, as well as to personal development. This study investigates when and how small business starters learn. It specifies the situations that offer learning opportunities, as well as the learning behaviours that small business starters can employ in order to learn from these opportunities. In a cross-sectional, quantitative study of recently started small business founders, learning opportunities and learning behaviours are related to three outcome measures: a performance outcome (goal achievement), a personal growth outcome (skill development), and an affective evaluation outcome (satisfaction). The results show the importance of learning opportunities and learning behaviours in influencing these outcome variables, albeit not always in the directions we hypothesized.
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    Internationalisation of the micro-enterprise from a social exchange relationship building perspective : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Marketing at Massey University
    (Massey University. Department of Commerce, 2006) Pickering, Paul
    The micro-enterprise (MCE) represents by far the largest category of businesses in most industrialised economies but until now it has not been recognised as an important participant in the foreign market. Much has been written about how larger firms internationalise through the gradual acquisition of knowledge and resources, although there is a paucity of literature on how the MCE exploits international markets often despite the absence of such acquisitions. This thesis proposes that building a portfolio of relationships is critical in facilitating both market entry and subsequent outcomes. A more detailed investigation of this process helps reveal precisely how MCE internationalisation is largely a function of its specific relationship building efforts.Employing a multiple case study approach, in-depth interviews were held with founders and directors from seven MCE's, purposely selected from three main centres of commercial activity in New Zealand. Interview participants were encouraged to provide detailed longitudinal retrospections of their firm's internationalisation journey, with a particular emphasis on precisely how resource constraints were overcome during this process. All interviews were recorded and transcribed, and together with other confirmatory data sources, these formed the canon of evidence used for ongoing analysis and interpretation. The whole research process was an iterative one with observations made from earlier cases being challenged and refined through the consideration of data from subsequent cases.Several key findings emerged from this study. Firstly, internationalisation is of considerable significance to the MCE in that it expands product and market opportunities, improves operational competencies, and provides an outlet for the achievement of both financial and relational goals. Secondly, key relationships developed during this process include internal, manufacturer/supplier, distributor, support, EPO, and end-user types. Thirdly, MCE's gravitate towards adopting either a social exchange (characterised by trust, commitment and social norms) or transaction cost analysis (characterised by contractual mechanisms) approach to developing these relationship types. Critical to this finding though and previously unobserved in the literature, is that within the context of a social exchange or transaction cost analysis approach, governance (bilateral or unilateral/market) may be observed as a separate construct. Finally, the MCE adopting a social exchange approach overall achieves more robust international outcomes particularly in respect to increased cost efficiencies and new market opportunities.Although no statistical inferences can be drawn from the findings of this study, some important generalisations to theory can be made in respect to the manner in which small firm internationalisation is currently modelled. It is suggested that this research has begun to address the issue by proposing that the quality of relationships is central to the success of the smallest of internationalising concerns. Specifically, sequential knowledge, network, and resource based views, need to better incorporate the moderating role that the relational paradigm has on international progress. To this end it has been demonstrated that the precise underpinnings of the relationship can have a determining effect on both the rate and cost of international progress. Furthermore, managers may also benefit from these findings by improving both their relationship filtering and nurturing processes.
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    Impact of social media usage on performance of construction businesses (CBs) in Abuja-Nigeria
    (Emerald Publishing Limited, 27/07/2021) Oyewobi LO; Olorunyomi OS; Jimoh RA; Rotimi JOB
    Purpose Many construction businesses are currently building and keeping social media pages for their enterprises to be visible to the public to improve their social interaction, promote business interest, build trust and relationships with their targeted audience on social media. The purpose of this study is to examine the impact of social mediausage on performance of construction businesses (CBs) in Abuja, Nigeria. Design/methodology/approach This study used a quantitative research approach by identifying constructs that reveal three aspects of organisation’s physiognomies that impact the process of espousing, implementing and using technological innovations in conducting businesses. Well-structured questionnaire was used to obtain data from 113 purposively sampled building materials’ merchant operating in Dei-Dei Market, Abuja, Nigeria. This study used partial least squares structural equation modelling technique to establish the relationship among the constructs. Findings The results of this study indicated that technology has significant relationship with social media adoption, whereas social media adoption has a very strong positive impact on organisation’s performance (P < 0.001) with respect to improved customer relations and services and enhanced information accessibility. Research limitations/implications This study has implications for CBs that wish to adopt social media to promote their businesses by presenting to them the opportunity to understand the impact of technology, environment and organisational potential in improving business performance. This study is cross-sectional in nature, and this calls for caution in interpreting the results. Originality/value This paper developed and tested a conceptual framework presented to understand the interrelationships amongst the constructs, which would be of great significance to business owners in developing their social interaction and promote business interest via social media. The outcome of this research is beneficial to researchers to further study how the different social media tools could help in influencing business decisions.