Distinctive Competence and Organizational Performance
CHAPTER ONE
Objective of the study
The objectives of the study are;
- To investigate the effects of organizational competence on their competitive advantage
- To ascertain the effect of distinctive competence on organizational performance
- To ascertain the effect of distinctive competence on organizational profitability
CHAPTER TWO
LITERATURE REVIEW
Theoretical Framework
Competitiveness Theory
Competitive advantage is obtained when an organization develops or acquires a set of attributes (or executes actions) that allow it to outperform its competitors. The development of theories that help explain competitive advantage has occupied the attention of the management community for the better part of half a century. Early literature on the theories of trade between nations provided the basis for competitiveness theory. It alluded to the development of sustainable competitive advantage well before its time. Competitiveness theory evolved from the traditional trade theories, fundamentally ‘The effect of the Wealth of Nations’ Adam Smith in 1776 (later translated in 1937), which was revolutionary. In his book Adam Smith disputed the then existing philosophy Mercantilism view on trade which suggested that trade was a zero sum game in which a trade surplus of one country is offset by a trade deficit in another country. Smith in his argument viewed trade as a positive sum game in which all trading partners can benefit if countries specialized in the production of goods and services in which they had absolute advantage. This came to be known as the theory of absolute advantage. Marrewijk (2007) points out that the theory of absolute advantage was extended to comparative advantage where he stated that even if a country does not have an absolute advantage in any good this country and other countries will still benefit from international trade. However, Ricardo did not satisfactorily explain why comparative advantage differed across countries. To provide an explanation, in 1919 Swedish economist Eli Hecksher developed the factor proportions (endowment) theory which was later expanded by his former student, Bertil Ohlin in 1933 and later came to be known as H-O Theory. The two proposed that comparative advantage arises from differences in factor endowments, a theory which was virtually self evident (Marrewijk, 2007). Competitiveness theories proposed some kind of advantage as enabling a country gain more out of international trade. The same is true for the firm. If sustainable superior performance (which equals sustainable competitive advantage) is to be achieved a firm must differentiate itself. Marrewijk (2007) hinted at a basic tenet of sustainable competitive advantage, that a fundamental aspect of competitive advantage is the specialization of suppliers to meet the variations in buyer demand. Later Barney (2010) recognized that firms should strive for unique characteristics in order to distinguish themselves from competitors in the eyes of the consumer.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine Distinctive competence and organizational performance. Dangote cement Plc, Lagos state form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
TEST OF HYPOTHESIS
H1: there are no effects of organizational competence on their competitive advantage
H2: there is no effect of distinctive competence on organizational performance
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain Distinctive competence and organizational performance. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of addressing distinctive competence and organizational performance
Summary
This study was on distinctive competence and organizational performance. Three objectives were raised which included: To investigate the effects of organizational competence on their competitive advantage, to ascertain the effect of distinctive competence on organizational performance and to ascertain the effect of distinctive competence on organizational profitability. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Dangote cement Plc, Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
This study explored the concept of distinctive competence and organizational performance. Distinctive competence is a set of unique capabilities that certain companies possess allowing them to make inroads into desired markets and to gain advantage over the competition. Generally, it is an activity that an organisation performs better than its competition. To define a company’s distinctive competence, organization must complete an assessment of both internal and external corporate environments. When finds an internal strength that both meets market needs and gives the organisation a comparative advantage in the marketplace, that strength is the company’s distinctive competence. Taking advantage of an existing distinctive competence is essential to success in the marketplace. In summary an organization’s distinctive competency provide it its competitive advantage. What these distinctive competencies are, need to be systematically identified and evaluated to ensure that adequate managerial focus and resources are directed to its development to support growth and success in a dynamic market.
Recommendation
To improve productive involvement, it is suggested for managers of Dangote cement Plc to improve the company’s cooperation and team work through reduction of departmentalization.
Managers of Dangote cement Plc should have in place a plan to develop and improve the competency of employees. Also employees should be reward with career progression. Since training of staff, development and career progression are critical in ensuring competitive advantage and growth.
For policy makers and regulators, there is the need to ensure an enabling environment that supports healthy competitions in relation to bulk cement distributors to ensure growth. There should be much improved institutional framework that guides the entire process of the deregulation policy in order to ensure equity and fairness in the industry.
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