Injecting courage into strategy: the perspective of competitive advantage

Abstract

Purpose This study aims to examine the mediating effect of four antecedents of competitive advantage on the linkage of risky strategy to firm performance, measured by revenue dynamics. It considers the roots of competitive advantage to highlight different patterns and foundations of achieving superior performance. It investigates whether pursuing a risky strategy fosters revenue dynamics growth and whether different mediators are included in that relationship. Design/methodology/approach Path analysis (structural equation modeling) method is used to analyze data from 122 companies of various sizes and industries. All respondents were responsible for executing strategic management processes. The paper used the subjective perspective, which is based on the individual opinion of senior company managers and owners. Findings The authors find a positive relationship between risky strategy and firm performance, but no evidence of a mediating role of competitive advantage and dynamic growth in this relationship. Competitive advantage should be perceived as a set of integrated factors that can be analyzed from an aggregated perspective. Integrating all antecedents requires a holistic and systematic approach and the development of a particular mindset. Aggregated competitive advantage is related to setting dynamic growth as a priority. However, no relationship between risky strategy and achieving competitive advantage, or between implementing a risky strategy and setting dynamic growth as a priority, is observed, which was assumed to explain the revenue dynamics growth. Research limitations/implications Secondary data should be analyzed to explore how risky strategies are manifested, and which managerial decisions are reflected in high-level risk. A multidimensional scale could be developed to check how risk shapes the constructs’ interdependence. Therefore, the dynamic capabilities approach could be further expanded. Practical implications This research offers insights into the short-term relationship between risky strategy and revenue dynamics, although competitive advantage does not mediate that relationship. Special attention should be paid to the selected antecedents of competitive advantage, as they influence dynamic growth. Originality/value This work provides insights into different antecedents of competitive advantage, which is not necessarily based on making risky decisions, and into factors that facilitate firm performance measured by revenue dynamics.

Analisis efektivitas ship management untuk optimalisasi kinerja di era industry 5.0

“…Kinerja perusahaan berhubungan dengan keberhasilan yang digapai oleh perusahaan di mana keberhasilan tersebut biasanya diukur menggunakan pengukuran yang Program Studi S1 Manajemen Fakultas Ekonomika dan Bisnis Universitas Negeri Surabaya 2024 123 bersifat subyektif atau obyektif (Aliyyah et al, 2021). Pengukuran kinerja yang obyektif dinilai lebih baik daripada pengukuran kinerja yang subyektif (Radomska et al, 2021). Pengukuran kinerja yang obyektif dapat dilihat berdasarkan sudut pandang finansial yang meliputi keberhasilan finansial meliputi pemanfaatan sumber daya, dan pangsa pasar secara maksimal, sedangkan pengukuran kinerja yang subyektif dapat dilihat berdasarkan sudut pandang non-finansial yang meliputi kualitas layanan, kepuasan personel, dan kepuasan pelanggan (Kennett et al, 2020).…”