Essay on Analyze and Think: Competitive Advantage
Number of words: 749
The nature of conducting business has changed, and globalization has influenced virtually every sector of business. Also, globalization has increased competition, and today companies are forced to formulate new ways that allow them to overcome the intensive competitive landscape (Overesch & Rincke, 2011). This paper analyses two different articles. The first article is termed “International expansion for knowledge acquisition or knowledge acquisition for international expansion?” by Kogut et al. (2019). It analyzes how multination companies engage in knowledge acquisition through a process known as reverse knowledge transfer to gain competitive advantage. The second article is named “Learning & Development in Times of Digital Transformation: Facilitating a Culture of Change and Innovation” by Vey et al. (2017). It looks at how companies gain competitive advantage through the intensive use of technology, among other aspects, including innovation. The articles discuss a critical element of a business; they look at how multinational companies gain an advantage over competitors through a mix of technology and innovation. Technology and innovation affect value activities and allows enterprises to gain a competitive advantage in a competitive landscape.
The use of technology in commerce has revolutionized the way people conduct business (Crittenden et al., 2010). Companies that are accustomed to traditional methods of operation are today, finding it hard to compete. More importantly, technology and a culture of innovation have made it virtually impossible for established companies to see and prepare for competition. These are the main points raised by Vey et al. (2017). According to Vey et al. (2017), the world is changing at an unprecedented speed, and many things that were previously referred to as science fiction are today becoming a reality. Technology, according to the authors, has created a platform economy with companies, including Uber and Airbnb dominating the market. The platform economy has made it possible for companies like Uber, the largest taxi company, to operate without vehicles and Airbnb, the largest real estate company, to operate without owning a single property. Technology has disrupted business and, in so doing, has allowed more prominent and well-functioning companies to arise (Crittenden et al., 2010); it has changed business at different levels both in terms of products, service, and unique business models.
Technology is also viewed as a critical business aspect by Kogut et al. (2019); however, in this case, the authors see technology as a tool to find and utilize knowledge and information. More significantly, the authors study how emerging market multinational enterprises engage in reverse knowledge transfer to compete effectively in international markets. In this case, the authors agree that knowledge and technology developed by organizations in other parts of the world can be exploited by local organizations or by headquarters to gain competitive advantage. Kogut et al. (2019) emphasize knowledge and information as an aspect of commerce. According to them, organizations that consistently capitalize on knowledge continue to report improved company success over competitors who do not. More importantly, companies with subsidiaries in other regions of the world can use the knowledge gathered by these subsidiaries to improve their core business in a process known as reverse knowledge transfer.
Knowing how to compete as a business is critical, and, more significantly, understanding the tools to use to compete effectively creates the difference between success as failure. Vey et al. view technology and innovation as the bread and butter of success, without which companies can find it hard to compete. Kogut et al., on the other hand, see technology as a tool for gathering knowledge to improve competitive advantage. They agree that the knowledge and experience gathered by subsidiaries in one country can be implemented in other countries.
Crittenden, V., Peterson, R., & Albaum, G. (2010). Technology and business-to-consumer selling: contemplating research and practice. Journal of Personal Selling & Sales Management, 30(2), 103-109. https://doi.org/10.2753/pss0885-3134300201
Kogut, C., Cotta de Mello, R., & Rocha, A. (2019). International expansion for knowledge acquisition or knowledge acquisition for international expansion? Multinational Business Review, 28(2), 177-200. https://doi.org/10.1108/mbr-11-2018-0084
Overesch, M., & Rincke, J. (2011). What drives corporate tax rates down? A reassessment of globalization, tax competition, and dynamic adjustment to shocks. Scandinavian Journal of Economics, no-no. https://doi.org/10.1111/j.1467-9442.2011.01650.x
Vey, K., Fandel-Meyer, T., Zipp, J., & Schneider, C. (2017). Learning & development in times of digital transformation: facilitating a culture of change and innovation. International Journal of Advanced Corporate Learning (Ijac), 10(1), 22. https://doi.org/10.3991/ijac.v10i1.6334