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1 Management and Production Engineering Review

1 2013

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Validating knowledge and technology effects to operative sustainable competitive advantage

Takala J., Koskinen J., Liu Y., Tas M. S., Muhos M.

Management and Production Engineering Review

2013

Vol. 4, No. 3

45--54

Purpose: This paper aims to present a fresh idea on how to model and examine the level of sustainable competitive advantage (SCA) with and without knowledge and /technology (K/T) effects in a case company’s operation by taking the manufacturing strategy’s development directions and the efficiency of resource allocation among its attributes into consideration. Design/Methodology/approach: In this paper, questionnaires are filled by two different managerial groups, company’s management team (G1) and company’s global directors (G2). The analyses based on G1, G2 and G1-G2 (mixed results) are performed and examined as well as the effect of knowledge and /technology rankings to observe the differences on how they effect on company’s operations strategy and what kind of strategy type that decision makers might follow. Besides, the effects of knowledge/technology rankings on SCA risk levels are examined on different case companies to perceive the similarities and differences with our case company. In this case study, the objectives are achieved based on several methodologies: manufacturing strategy index (MSI) [1] and sense and respond (S&R) methodology [2]. Findings: The achieved results through the model are found to be promising corresponding to the feedback from the respondents. Research limitations/implications: The model is applied only in a big sized B2B global company that produces power electronics products. Therefore, further tests need to be applied to the model in case of multiple companies from different sizes and areas to figure out the best formula in case of validation of strategic direction (MAPE, RSME or MAD). Practical implications: As a result of its wide applicability and its ease in arrangement the model has an enormous potential for strategic decision-making process and strategic analysis. Originality/Value:The model can provide a more dependable possibility of sustainable improvement to the corporate operational excellence and strategy.