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EN
This paper examines the relationship between business environment, competitiveness and firm performance considering a survey data from three consecutive years: 2013-2015. The comparative analysis showed that over these years business environment, competitiveness and firm performance of Finnish SMEs are slowly deteriorating. Results from correlation analysis revealed that business environment, competitiveness and firm performance are positively correlated. However, the relationships between these variables are not consistent in respect to competitive priorities indicating a dynamic nature of cost, quality, time, and flexibility dimensions. Besides these findings our analysis acknowledged that to improve firm performance, irrespective to the choice of competitive priority, SMEs should pay more attention to their competitiveness rather than blaming the business environment. The paper concludes that simultaneous use of competitive priority dimensions might be more favorable as a source of competitiveness and competitive advantage to improve firm performance. However, the managers are encouraged to compare the results, findings and concepts presented in this paper among themselves and comprehend the specific answer to the question posed in the title.
EN
In today’s dynamic business environment, a key challenge for all companies is to make adaptive adjustments to their manufacturing strategy. This study demonstrates the competitive priorities of manufacturing strategy in hydro-power case company to evaluate the level of sustainable competitive advantage and also to further analyze how business strategies are aligned with manufacturing strategies. This research is based on new holistic analytical evaluation of manufacturing strategy index, sense and respond, and sustainable competitive advantage models. These models help to describe, evaluate, and optimize resource allocation to meet the performance requirements in dynamic decision making. Furthermore, these models evaluate operational competitiveness for manufacturing strategies according to the multi-criteria priority. The results show that the adjustments of competitive priorities in manufacturing strategies by implementing the proposed holistic analytical models are helpful in strategically managing business operations. The discussion derives the most critical attributes in business operations while alignment of resource allocation with competitive priorities help to strategically focus those attributes. In conclusion, we argue that resource allocation and manufacturing strategies have become the most important capabilities in a business environment where companies focus to get a sustainable competitive advantage.
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