IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i21p8832-d434038.html
   My bibliography  Save this article

Between Sustainable and Temporary Competitive Advantages in the Unstable Business Environment

Author

Listed:
  • Letycja Sołoducho-Pelc

    (Strategic Management Department, Wroclaw University of Economics and Business, 53-345 Wroclaw, Poland)

  • Adam Sulich

    (Department of Strategy and Management Methods, Wroclaw University of Economics and Business, 53-345 Wroclaw, Poland)

Abstract

Gaining a competitive advantage assumes that a company should build a unique position, but this concept is related to a relatively stable environment. However, it is difficult to predict the consequences of the enterprises’ changes, leading to changes both in the business and natural environment. Therefore, this study’s authors asked a research question: Is it possible to restore a balance between durability and variability of the organization in terms of strategy? The answer to such a question was drawn upon the literature review and survey research. This paper presents a qualitative and quantitative model of competitive advantage in a changing business environment. This article uses an inductive inference method supported by a literature study and a deduction method supported by statistical calculations, based on a survey conducted among 150 Polish companies in different economic sectors. As a result of the research methods, a dualistic competitive advantage model in a changing environment was proposed and discussed. The article’s aim was achieved in the model combining a sustainable (SCA) and temporary competitive advantage (TCA). Understanding the conditions for gaining competitive advantage allowed to formulate general conditions under which sustainable strategic management can be built to consider sustainability objectives and contribute to the green economy. This research has confirmed that building a competitive advantage in unstable conditions requires finding a balance between implementing the planned development strategy and using new opportunities.

Suggested Citation

  • Letycja Sołoducho-Pelc & Adam Sulich, 2020. "Between Sustainable and Temporary Competitive Advantages in the Unstable Business Environment," Sustainability, MDPI, vol. 12(21), pages 1-16, October.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:8832-:d:434038
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/21/8832/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/12/21/8832/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Richard A. D'Aveni & Giovanni Battista Dagnino & Ken G. Smith, 2010. "The age of temporary advantage," Strategic Management Journal, Wiley Blackwell, vol. 31(13), pages 1371-1385, December.
    2. Gerard Farias & Christine Farias & Isabella Krysa & Joel Harmon, 2020. "Sustainability Mindsets for Strategic Management: Lifting the Yoke of the Neo-Classical Economic Perspective," Sustainability, MDPI, vol. 12(17), pages 1-14, August.
    3. Tammy L. Madsen & Michael J. Leiblein, 2015. "What Factors Affect the Persistence of an Innovation Advantage?," Journal of Management Studies, Wiley Blackwell, vol. 52(8), pages 1097-1127, December.
    4. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    5. Scott L. Newbert, 2008. "Value, rareness, competitive advantage, and performance: a conceptual‐level empirical investigation of the resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 29(7), pages 745-768, July.
    6. Adam Sulich & Adam Grudziński, 2019. "The Analysis of Strategy Types of the Renewable Energy Sector," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(6), pages 1643-1651.
    7. David G. Sirmon & Michael A. Hitt & Jean‐Luc Arregle & Joanna Tochman Campbell, 2010. "The dynamic interplay of capability strengths and weaknesses: investigating the bases of temporary competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 31(13), pages 1386-1409, December.
    8. Richard P. Rumelt, 1991. "How much does industry matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(3), pages 167-185, March.
    9. Sungmin Kang & Youn Kue Na, 2020. "Effects of Strategy Characteristics for Sustainable Competitive Advantage in Sharing Economy Businesses on Creating Shared Value and Performance," Sustainability, MDPI, vol. 12(4), pages 1-21, February.
    10. Drnevich, Paul L. & Mahoney, Joseph T. & Schendel, Dan, 2020. "Has Strategic Management Research Lost Its Way?," Strategic Management Review, now publishers, vol. 1(1), pages 35-73, March.
    11. Julio Cesar Ferro de Guimarães & Eliana Andréa Severo & César Ricardo Maia de Vasconcelos, 2017. "Sustainable Competitive Advantage: A Survey of Companies in Southern Brazil," Brazilian Business Review, Fucape Business School, vol. 14(3), pages 352-367, May.
    12. Robert R. Wiggins & Timothy W. Ruefli, 2002. "Sustained Competitive Advantage: Temporal Dynamics and the Incidence and Persistence of Superior Economic Performance," Organization Science, INFORMS, vol. 13(1), pages 81-105, February.
    13. David Sirmon & Michael Hitt & Jean-Luc Arrègle & Joanna Tochman Campbell, 2010. "The Dynamic Interplay of Capability Strengths and Weaknesses : Investigating the Bases of Temporary Competitive Advantage," Post-Print hal-02312681, HAL.
    14. Fokko J. Eller & Michael M. Gielnik & Hendrik Wimmer & Corinna Thölke & Sara Holzapfel & Silke Tegtmeier & Jantje Halberstadt, 2020. "Identifying business opportunities for sustainable development: Longitudinal and experimental evidence contributing to the field of sustainable entrepreneurship," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1387-1403, March.
    15. John E. Elliott, 1980. "Marx and Schumpeter on Capitalism's Creative Destruction: A Comparative Restatement," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(1), pages 45-68.
    16. Robert R. Wiggins & Timothy W. Ruefli, 2005. "Schumpeter's ghost: Is hypercompetition making the best of times shorter?," Strategic Management Journal, Wiley Blackwell, vol. 26(10), pages 887-911, October.
    17. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    18. T. Russell Crook & David J. Ketchen & James G. Combs & Samuel Y. Todd, 2008. "Strategic resources and performance: a meta‐analysis," Strategic Management Journal, Wiley Blackwell, vol. 29(11), pages 1141-1154, November.
    19. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
    20. Duane Ireland, R. & Webb, Justin W., 2007. "Strategic entrepreneurship: Creating competitive advantage through streams of innovation," Business Horizons, Elsevier, vol. 50(1), pages 49-59.
    21. Constance E. Helfat & Margaret A. Peteraf, 2003. "The dynamic resource‐based view: capability lifecycles," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 997-1010, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elżbieta Sobczak & Dariusz Głuszczuk & Andrzej Raszkowski, 2022. "Eco-Innovation and Innovation Level of the Economy as a Basis for the Typology of the EU Countries," IJERPH, MDPI, vol. 19(4), pages 1-17, February.
    2. Răzvan-Andrei Corboș & Ovidiu-Iulian Bunea & Daniel-Constantin Jiroveanu, 2023. "The Effects of Strategic Procurement 4.0 Performance on Organizational Competitiveness in the Circular Economy," Logistics, MDPI, vol. 7(1), pages 1-17, February.
    3. Jerzy Niemczyk & Aleksandra Sus, 2020. "The Concept of Global Competencies of Corporations in the Context of a Global Mindset," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 30-39.
    4. Tomasz Zema & Adam Sulich, 2022. "Models of Electricity Price Forecasting: Bibliometric Research," Energies, MDPI, vol. 15(15), pages 1-18, August.
    5. Adam Sulich & Letycja Sołoducho-Pelc, 2021. "Renewable Energy Producers’ Strategies in the Visegrád Group Countries," Energies, MDPI, vol. 14(11), pages 1-21, May.
    6. Marcin Łuszczyk & Adam Sulich & Barbara Siuta-Tokarska & Tomasz Zema & Agnieszka Thier, 2021. "The Development of Electromobility in the European Union: Evidence from Poland and Cross-Country Comparisons," Energies, MDPI, vol. 14(24), pages 1-18, December.
    7. Adam Sulich & Malgorzata Rutkowska & Agnieszka Krawczyk-Jezierska & Jaroslaw Jezierski & Tomasz Zema, 2021. "Cybersecurity and Sustainable Development," Papers 2105.13652, arXiv.org.
    8. Adam Sulich & Letycja Sołoducho-Pelc & Marcos Ferasso, 2021. "Management Styles and Decision-Making: Pro-Ecological Strategy Approach," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    9. Rafał Trzaska & Adam Sulich & Michał Organa & Jerzy Niemczyk & Bartosz Jasiński, 2021. "Digitalization Business Strategies in Energy Sector: Solving Problems with Uncertainty under Industry 4.0 Conditions," Energies, MDPI, vol. 14(23), pages 1-21, November.
    10. Letycja Sołoducho-Pelc & Adam Sulich, 2022. "Natural Environment Protection Strategies and Green Management Style: Literature Review," Sustainability, MDPI, vol. 14(17), pages 1-25, August.
    11. Fieras Alfawaire & Tarik Atan, 2021. "The Effect of Strategic Human Resource and Knowledge Management on Sustainable Competitive Advantages at Jordanian Universities: The Mediating Role of Organizational Innovation," Sustainability, MDPI, vol. 13(15), pages 1-35, July.
    12. Sora Lee & Jaewon Yoo, 2021. "Determinants of a Firm’s Sustainable Competitive Advantages: Focused on Korean Small Enterprises," Sustainability, MDPI, vol. 13(1), pages 1-16, January.
    13. Joanna Martusewicz & Karol Szewczyk & Arkadiusz Wierzbic, 2022. "The Environmental Protection and Effective Energy Consumption in the Light of the EFQM Model 2020—Case Study," Energies, MDPI, vol. 15(19), pages 1-17, October.
    14. Adam Sulich & Malgorzata Rutkowska & Uma Shankar Singh, 2021. "Decision Towards Green Careers and Sustainable Development," Papers 2106.00465, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nayak, Bishwajit & Bhattacharyya, Som Sekhar & Krishnamoorthy, Bala, 2022. "Exploring the black box of competitive advantage – An integrated bibliometric and chronological literature review approach," Journal of Business Research, Elsevier, vol. 139(C), pages 964-982.
    2. Papazoglou, Michalis E. & Spanos, Yiannis E., 2021. "“Influential knowledge and financial performance: The role of time and rivals’ absorptive capacity”," Technovation, Elsevier, vol. 102(C).
    3. Jorge Ferreira & Sofia Cardim & Arnaldo Coelho, 2021. "Dynamic Capabilities and Mediating Effects of Innovation on the Competitive Advantage and Firm’s Performance: the Moderating Role of Organizational Learning Capability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 620-644, June.
    4. R. Duane Ireland & Michael C. Withers & Joseph S. Harrison & David S. Boss & Richard Scoresby, 2023. "Strategic Entrepreneurship: A Review and Research Agenda," Entrepreneurship Theory and Practice, , vol. 47(2), pages 495-523, March.
    5. Huy-Cuong Vo-Thai & Shihmin Lo & My-Linh Tran, 2021. "How Capability Reconfiguration in Coping With External Dynamism Can Shape the Performance of the Vietnamese Enterprises," SAGE Open, , vol. 11(3), pages 21582440211, July.
    6. Lin, Hsing-Er & Hsu, I-Chieh & Hsu, Audrey Wenhsin & Chung, Hsi-Mei, 2020. "Creating competitive advantages: Interactions between ambidextrous diversification strategy and contextual factors from a dynamic capability perspective," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    7. Thorsten Koch & Josef Windsperger, 2017. "Seeing through the network: Competitive advantage in the digital economy," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-30, December.
    8. Yaqun Yi & Yuan Li & Michael A. Hitt & Yi Liu & Zelong Wei, 2016. "The influence of resource bundling on the speed of strategic change: Moderating effects of relational capital," Asia Pacific Journal of Management, Springer, vol. 33(2), pages 435-467, June.
    9. Waleczek, Peter & von den Driesch, Till & Flatten, Tessa C. & Brettel, Malte, 2019. "On the dynamic bundles behind operations management and research and development," European Management Journal, Elsevier, vol. 37(2), pages 175-187.
    10. Zhang, Yucheng & Hou, Zhongwei & Yang, Feifei & Yang, Miles M. & Wang, Zhiling, 2021. "Discovering the evolution of resource-based theory: Science mapping based on bibliometric analysis," Journal of Business Research, Elsevier, vol. 137(C), pages 500-516.
    11. Camisón, César & Forés, Beatriz, 2011. "Knowledge creation and absorptive capacity: The effect of intra-district shared competences," Scandinavian Journal of Management, Elsevier, vol. 27(1), pages 66-86, March.
    12. John Mugambwa Serumaga-Zake & John Andrew van der Poll, 2021. "Addressing the Impact of Fourth Industrial Revolution on South African Manufacturing Small and Medium Enterprises (SMEs)," Sustainability, MDPI, vol. 13(21), pages 1-31, October.
    13. Alfredo De Massis & Josip Kotlar & Mike Wright & Franz W. Kellermanns, 2018. "Sector-Based Entrepreneurial Capabilities and the Promise of Sector Studies in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 42(1), pages 3-23, January.
    14. Daniel Schallmo & Christopher A. Williams & Jochen Lohse, 2019. "Digital Strategy — Integrated Approach And Generic Options," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(08), pages 1-24, December.
    15. Frohwein, Torsten, 2015. "The regulated firm: Effects of regulation on competence development and sustainable competitive advantage," Research Papers on Innovation, Services and Technology 1/2015, University of Stuttgart, Institute of Business Administration, Department I - Institute of Research & Development and Innovation Management.
    16. Muhammed Altuntas & Gerrit Gößmann, 2016. "The Relationship Between Home Market Performance and Internationalization Decisions: Evidence From German Insurance Groups," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 19(1), pages 37-71, March.
    17. Ritu Singh & Parikshit Charan & Manojit Chattopadhyay, 2019. "Dynamic capabilities and responsiveness: moderating effect of organization structures and environmental dynamism," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(4), pages 301-319, December.
    18. Tze San Ong & Ah Suat Lee & Boon Heng Teh & Hussain Bakhsh Magsi, 2019. "Environmental Innovation, Environmental Performance and Financial Performance: Evidence from Malaysian Environmental Proactive Firms," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    19. Jason P. Davis & Vikas A. Aggarwal, 2020. "Knowledge mobilization in the face of imitation: Microfoundations of knowledge aggregation and firm‐level innovation," Strategic Management Journal, Wiley Blackwell, vol. 41(11), pages 1983-2014, November.
    20. Li, Da-yuan & Liu, Juan, 2014. "Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China," Journal of Business Research, Elsevier, vol. 67(1), pages 2793-2799.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:8832-:d:434038. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.