The Nature Of Firm’s Internal Environment Capabilities And Competencies Dynamics Evaluation: Feasible Strategy Crafting Imperatives
John E. Chikwe , Ph.D, Department Of Management University Of Port Harcourt Nigeria Chris Sam Biriowu , Ph.D, Department Of Management Rivers State University Port Harcourt, NigeriaAbstract
The study strategically evaluated the nature of firm’s internal environment capabilities and competencies dynamics that will ensure feasible strategy crafting. The understanding and analysis of the challenges posed in the internal environment helps strategists to make strategic decisions relating to the resources, capabilities and core competencies since they are non routine. In order to facilitate the development and effective usage of core competencies, managers/strategists are advised to have courage, self-confidence, integrity, the capacity to deal with uncertainty and complexity, and a willingness to hold people accountable for their work, as well as their being accountable themselves. This should be necessitated because the competitive advantage and firm’s performance are often strongly related to the resources firms hold and how they are managed. This is found to be so, since human beings are strategic critical resource that produces innovation, develops policies and strategies, and firm’s competitive advantage enhancement. The study further explored some related perspectives of valuable capabilities, personnel and organizational competencies, resources tangibility and intangibility, as well as competitive advantage sustainability criteria that will guide feasible strategy crafting. The study recommends amongst others, that organization managers should as a matter of necessity, monitor and evaluate the internal environment capabilities and competencies in order to have fit with that of external resources dynamics to enhance feasible strategy crafting.
Keywords
Environment;, Capabilities;
References
Autio, E., Sapienza, H.J., & Almeida, J.G. (2000). Effects of age at entry, knowledge intensity, and imitability on international growth, Academy of Management Journal, 43:909-924.
Barney, J.B. (1986). Organizational Culture: Can it be a source of sustained competitive advantage? Academy of Management Review, 11:656-665.
Barney, J.B. (1991). Firm resources and sustained competitive advantage, Journal of Management, 17:99-120.
Barney, J.B. (1997). Gaining and Sustaining Competitive Advantage. Reading, M.A.: Addison-Wesley, 145-164.
Berman, S.L., Down, J. and Hill, C.W.L. (2002). Tacit knowledge as a source of competitive advantage in the National Basketball Association, Academy of Management Journal, 45: 13-31.
Berthon, P., Holbrook, M.B. & Hulbert, J.M. (2003). Understanding and managing the brand space, MIT Sloan Management Review, 44(2): 44(2):49-54.
Bierly, P.E. (1999). Development of a Generic Knowledge Strategy Typology. Journal of Business Strategies. Springs, 3.
Brush, C.G., Green, P.G., & Hart, M.M. (2001). Initial idea to unique advantage: the entrepreneurial challenge of constructing a resource base, Academic of Management Executive, 15(1): 64-78.
Chi, T. (1994). Trading in strategic resource: necessary conditions, transaction cost problem, and choice of exchange structure; Strategic Management Journal, 15: 271-290.
Chikwe, J.E. (n.d.). Business Policy and Strategic Management Dynamics, Text and Cases, (in Press).
Chikwe, J.E. (2018). Fundamental Concept of Strategy Development: A Critical Examination. Global Journal of Business Management, 12(1), 125-139, June, New Delhi, India.
Chikwe, J.E. & Biriowu, C.S. (2019). Managerial Competencies and Organizational Innovativeness: Evidence from selected. Small and Medium Enterprises (SMEs) in Port Harcourt, Nigeria. International Journal of Research in Business Management (IMPACT: IJRBM), 7(6), 17-30, June.
Christensen, C.M. & Raynor, W.F. (2003). Why hard-rosed executives should care about management theory. Harvard Business Review.
Deeds, D.L., De Carolis, D., & Combs, J. (2000). Dynamic capabilities and new product development in high-technology ventures: An empirical analysis of new technology firms. Journal of Business Ventures, 15: 211-229.
Deeds, D.L. (2003). Alternative strategies for acquiring knowledge; in Jackson, S.E., Hitt, M.A and Denisi, A.S. (eds); Managing Knowledge for Sustained Competitive Advantage, San Francisco: Jossy-Bass, 37-63.
Deephouse, D.L. (2003). Media reputation as a strategic resource: an integration of mass communication and resource-based theories, Journal of Management, 26: 1091-1112.
Douglas, J.J; & Ryman, J.A. (2003). Understanding competitive advantage in the general hospital industry: Evaluating strategic competencies: Strategic Management Journal, 24: 33-47.
Dutta, S., Navasimhau, O. & Rajiv, S. (2005). Conceptualizing and measuring capabilities: Methodology and empirical application, Strategic Management Journal, 26:277-285.
Dutta, S., Zbaracki, M.J., & Bergen, M. (2003). Pricing process as a capability: A resource-based perspective; Strategic Management Journal, 24:615-630.
Ethiraj, S.K., Kale, P., Krishnan, M.S., & Singh, J.V. (2005). Where do capabilities come from and do they mater? A Study of the software services industry, Strategic Management Journal, 26:25-45.
Fiol, C.M. & O’Connor, E.J. (2003). Waking up! Mindfulness in the face of Bandwagous; General Management, 20(3): 76-90 Spring.
Florida, R. (2005). The Flight of the Creative Class; New York: Harper Business.
Funk, K, (2003). Sustainability and performance, MIT Sloan Management Review, 44(2):65-70.
Gavetti, G. & Levinthal, D. (2000). Looking forward and looking backward: Cognitive and experimental research, Administrative Science Quarterly, 45: 113-137.
Ghemawat, P. (2002). Competition and business strategy in historical perspective, Harvard Business Review.
Goldtein, H.W., Yusko, K.P.; & Nicolopoulos, V. (2001). Exploring black-white subgroup differences of managerial competences, Personnel Psychology, 54:782-808.
Grant, R.M. (1991). Contemporary Strategy Analysis. Cambridge, UK: Blackwell Business.
Greenboro, N.C. (1999). Centive for Creative Leadership, Personnel Psychology, 54:782-808.
Hall, R. (1992). The strategic analysis of intangible resources; Strategic Management Journal., 13: 136-139.
Hamel, G. & Prahalad, C.K. (1990). The core competence of the corporation. Harvard Business Review. May-June.
Hellriegel, D., Jackson, S.E.; & Slocum, J.W. (2005). Management: A competency-based approach (10th ed.), Mason, Ohio: Thomson South-Western.
Hitt, M.A. & Ireland, R.D. (2002). The essence of strategic leadership: Managing human and social capital; Journal of Leadership and Organization Studies, 9(1):3-14.
Hitt, M.A., Hoskisson, R.E., & Ireland, R.D. (2007). Management of Strategy, Concepts and Cases; USA: Thompson South-Western Higher Education.
Hitt, M.A., Ireland, R.D. and Palia, K.A. (1982). Industrial firms’ grand strategy and functional importance, Academy of Management Journal, 25:265-298.
Hoskisson, R.E. & Busenitz, L.W. (2002). Market uncertainty and learning distance in entrepreneurship entry mode choice. Oxford, UK: Blackwall Publishers, 151-172.
Hough, J.R. & White, M.A. (2003). Environment dynamism and strategic decision-making rationality: An examination at the decision level; Strategic Management Journal, 24: 385-392.
Ireland, R.D., Hitt M.A & Vaidyanath (2002). Managing strategic alliances to achieve a competitive advantage, Journal of Mangement, 28:416-446.
Jacobides, M.G. & Winter, S.G. (2005). The co-evolution of capabilities and transaction costs: Explaining the institutional structure of production, Strategic Management Journal, 26:395-413.
King, A.W. & Zeithaml, C.P. (2001). Competence and Firm’s performance: Examining the critical ambiguity paradox, Strategic Management Journal, 24: 763-772.
Knott, A.M. (2003). Persistent heterogenesity and sustainable innovation: Strategic Management Journal, 24:687-705.
Lubit, R. (2001). Tacit knowledge and knowledge management: The keys to sustainable competitive advantage; Organizational Dynamics, 29(3):164-178.
Makadok, R. (2001). Toward a synthesis of the resource-based and dynamic-capability views of rent creation; Strategic Management Journal, 22:387-401.
McCall, M.W. (1998). High fliers: Developing the Next Generation of Leaders, Boston: Harvard Business School Press.
Nutt, P.C. (2002). Why decisions fail; San-Francisco: Berrett-Koeller Pub.
Polanyi, M. (1966). The Facit Dimension. London: Routledge and Kegan Paul.
Quinn, J.B., Anderson, P., & Finkelstein, S. (1996). Making the mosh of the best, Harvard Business Review, 74(2):71-80.
Robertson, C.J. & Crittenden, W.F. (2003). Mapping moral philosophies: strategic implications for multinational firms, Strategic Management Journal, 24:385-392.
Schroeder, R.G., Bates, K.A., & Junttila, M.A. (2002). A resource-based view of manufacturing strategy and the relationship to manufacturing performance: Strategic Management Journal, 23:105-117.
Shamsie, J. (2003). The contex of dominance: An industry-driven framework for exploiting reputation, Strategic Management Journal, 24:199-215.
Simon, D.G., Hitt, M.A., & Ireland, R.D. (2007). Managing firm resources in dynamic markets to create value: Looking inside the black box. Academy of Management Review.
Snow, C.C. & Hrebibak, E.G. (1980). Strategy, distinctive competence, and organizational performance, Administrative Science Quarterly, 25:317-336.
Song, M., Droge, C., Hanvanich, S. & Calatone, R. (2005). Marketing and technology resource complementarily: An analysis of their interaction effect in two environmental contexts; Strategic Management Journal, 26, 259-276.
Subramani, M. & Venkataraman, N. (2003). Safeguarding investments in a symmetric interorganizational relationships: Theory and evidence, Academy of Management Journal, 46:46-62.
Tallman, S., Jenkins, M., Henry, N., & Pinch, S. (2004). Knowledge clusters and competitive advantage, Academy of Management Review, 29:258-271.
West III, G.P. & DeCastro, J. (2001). The achilles heel of firm strategic, resource weakness and distinctive inadequacies, Journal of Management Studies, 38: 417-442.
Wheeleen, T.L; & Hunger, J.D. (2004). Strategic Management and Business Policy, Upper Saddle River New Jersey: Pearson Education Inc.
Article Statistics
Copyright License
Copyright (c) 2020 The American Journal of Management and Economics Innovations
This work is licensed under a Creative Commons Attribution 4.0 International License.