Wanqing Zhu
In Brazilian textiles companies, this study looks at how the interaction between strategy capabilities, strategy types, strategy formulation quality, and strategy implementation capability affects organizational performance. A set of 211 valid questionnaires about Brazilian textile companies is used to model and test a conceptual framework in this article. Both the focus strategy and marketing capabilities, as well as the cost leadership strategy and management capabilities, are supported by the findings. However, there was no statistically significant connection found between differentiation strategy and technological capabilities. The utilization of combined strategies is indicated by the existence of an interrelationship between generic strategies of focus, cost leadership, and differentiation. The findings demonstrate a statistically significant relationship between management capability and market performance and the financial performance of the businesses.
The issue of competitive advantage is significant and deserving of special consideration in the literature. Given the significance of competition, researchers have focused on determining the most effective competitive strategies that businesses employ to generate extraordinary profits. The Resource Based View (RBV), which locates the sources of advantage within the firm and views the firm as a bundle of resources, developed in the early 1990s is another explanation of superior profit performance.
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