Business Strategy, Internal Resources, National Culture And Competitive Advantage: A Critical Review
Abstract
Businesses thrive in the market through utilization of available internal resources by the development and implementation of strategies which give them a competitive edge over and above their competitors. Competition is a compelling force for development as it motivates firms to reduce inefficiencies, restructure outdated operations and introduce new product lines and technologies. Organizations acquire competitive advantage over its competitors in an industry through offering customers greater value, either by lower prices or by producing additional benefits and services that justify similar benefit or possibly higher prices as compared to other market players. Achieving sustainable competitive advantage assures the
maintenance and improvement of the business competitive position in the market, which can be achieved by continuously creating and developing existing internal resources and capabilities in response to the rapidly changing market conditions as a result of globalization and liberalization of world economies.Different countries and communities have different national cultures and traditions which inform their product and services loyalty as well as preferences. A business strategy that has been successful in one national cultural setup may not necessarily contribute to the same proportional competitive advantage while in a different national culture. Internal Resources can be used in multiple ways or simultaneously and are both inputs and outputs of business activities and when linked to national cultural influences they enable a business entity to improve in performance and better satisfy the needs in its environment and earning economic rents in the process. This Paper critically analyzes how business strategy and internal resources is utilized for competitive advantage in reference to the national culture.
Key Words: Business Strategy, Internal Resources, National Culture and Competitive advantage
maintenance and improvement of the business competitive position in the market, which can be achieved by continuously creating and developing existing internal resources and capabilities in response to the rapidly changing market conditions as a result of globalization and liberalization of world economies.Different countries and communities have different national cultures and traditions which inform their product and services loyalty as well as preferences. A business strategy that has been successful in one national cultural setup may not necessarily contribute to the same proportional competitive advantage while in a different national culture. Internal Resources can be used in multiple ways or simultaneously and are both inputs and outputs of business activities and when linked to national cultural influences they enable a business entity to improve in performance and better satisfy the needs in its environment and earning economic rents in the process. This Paper critically analyzes how business strategy and internal resources is utilized for competitive advantage in reference to the national culture.
Key Words: Business Strategy, Internal Resources, National Culture and Competitive advantage
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