A quantitative capability-based model for assessing organizational competitive advantage

Abstract

A capability-based model is proposed using a quantitative approach to evaluate organizational competitive advantage Organizational capability is a source of competitive advantage and sustainability Once a company lacks necessary capabilities it is likely to fail to gain a competitive advantage In the case engaging in collaboration with rivals may be the best way to enhance the competitive advantage of this company since such activity has the potential to offer significant and faster access to both resources and capabilities In order to help a company understand the efficiencies of its organizational capabilities and competitive strengths two models for capability measurement are developed respectively based on utility measurement and efficiency measurement in this study Furthermore a decision framework to model decision-making related to collaboration activities based on resource dependency theory and game theory is proposed in which collaborative strategies are from the Miles and Snow typology This framework enables a company to improve the process of selecting which potential partner is most suitable to collaborate with what capability transfer policy should be formulated and how much performance can be improved An empirical data set of 35 global semiconductor companies (i e SIC Code 3674) collected from the S&P COMPUSTAT database for the ten years examined (i e during the period 2001—2010) is adopted to verify the model The result illustrates that the proposed model is a useful tool for assisting top management in planning and formulating an appropriate collaboration strategy as well as for reallocating organizational resources and capabilities to response environmental changes to achieve a better performance

Date of Award	2016 May 31
Original language	English
Supervisor	Chinho Lin (Supervisor)