Therefore a disregard for environmental changes proves very costly. Due to its knowledge about the changes in the environment, a business enterprise waffle house trailer remains alert and dynamic. Literally, environment refers the surroundings external objects or circumstances in which someone or something exists.
This approach is credited for assuming a multidimensionality series of decisions that give management room to adapt in the face of changes in the business environment. This helps management to hedge themselves against negative risks. Thus management has room to make strategy adjustments in the case of future uncertainty.
In addition, according to the resource-based view, sustained competitive advantage is more a function of firm resources than of industry structure . In contrast, when the INV enters an environment of munificence, although it lacks resources, the environment provides the opportunity for it to create resources through the accumulation of revenues that can support survival and growth ; . The relationship between the company and its competitive environment; the allocation of resources among competing investment opportunities; and a long term perspective in which “patient money” figures prominently (Hamel & Prahalad, 1993). It is something to do with configuring the resources available within, or to, an organisation to achieve its future goals (Hutchinson, 2001, p. 268).
Nokia had used environmental scanning, product and technology roadmaps to define its competitive position and developing its product portfolio in the mobile communication industry. However, Nokia was not able to sustain its advantage over Google and Apple which entered the market unexpectedly exploiting the software skills they had originally developed in the PC industry. This entry of Apple and Google into the market can be identified as an example of a discontinuous driver of change that results in boundary uncertainty.
This article analyzes the role of top management as a key resource in obtaining sustained, competitive advantage for thefirm. The nature of managerial skills is examined and linked to isolating mechanisms and firm rents. The article aims to refocus attention on the importance of managerial expertise as a rent-generating firm resource and implies greater alignment of top management-shareholder interests than in many applications of agency theory to the firm. Although a cumulative body of literature explains entrepreneurial orientation and firm performance, there remain differing views on the mechanisms underlying this relationship. The purpose of this study is to investigate the effect of EO on firm performance by considering the roles of dynamic capabilities and corporate entrepreneurship . We propose that DC and CE mediate the relationship between EO and firm performance, and our empirical results support these propositions.
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