Can Financial Indicators be used to Measure the Competitive Advantages and Sustainability in Business Companies Listed in Palestine Financial Market?

Marwan J. Darwish, Fathallah A. Ghanem

Abstract


The aim of this study is to figure out the status of Palestinian industrial and Service Company’s possession of competitive advantages and sustainability. Research sample consist of fourteen companies of which seven industrial companies and seven service companies listed in Palestine Financial Market. Industrial and service companies showed a real challenges in achieving competitive advantages and maintaining their level of sustainability, as VOIC was the leading company in the selected industrial companies followed by JPH, whereas BOP, PIB, and PALTEL showed a healthy presentation towards competitive advantages and sustainability. On the other hand PPI in the industrial companies proved to face serious obstacles that might exit this company from the era of business, while AHC, WASEL, and WATANIYA showed critical issues towards competitive advantages and sustainability in the service sector.  The research found many conclusions both theoretically and practically, the most important as far as the calculated mean average is concern: all companies are trying hard in seeking and maintaining possession of competitive advantages and work on sustainability. While the weak point was in the service companies to achieve competitive advantages and sustaining mechanisms in the market. The research has provide several recommendations of which was the successful and healthy image some companies showed, therefore all companies listed in Palestine Financial Market need to continue on the issues of innovation and entrepreneurship, which leads to the innovation of new services and products which limit the ability of competitors to do with tradition, and to achieve the companies’ ability to satisfy the demand in a timely manner, shaping it to customer need and expectation, especially after customers became the focal point of any industry and his voice should be heard and attained as customers has a reflection on the achievement of revenue and profits that could contribute to companies competitive advantages and sustainability.

Full Text:

PDF

References


BARNEY, J.B. (1986). “Strategic Factor Markets: Expectations, Luck, and Business Strategy”, Management Science, 32(10), pp. 1231-1241.

BARNEY, J.B. (1991). “Firm Resources and Sustained Competitive Advantage”, Journal of Management, 17(1), pp. 99-120.

BARNEY, J.B. (2001a). “Is the Resource-based "View" a Useful Perspective for Strategic Management Research? Yes”, Academy of Management Review, 26, pp. 41-56.

BARNEY, J.B. (2001b). “Resource-based Theories of Competitive Advantage: A Ten-year Retrospective on the Resource-based View”, Journal of Management, 27, pp. 643-650.

BARNEY, J.B. (2007). Gaining and Sustaining Competitive Advantage (3rd ed.), Upper Saddle River, NJ: Pearson Education.

Bondoc M. D., Taicu M., Expenses analysis based on information provided by the profit and loss account – company performance diagnosis stage, Annals of the University of Petrosani, Economics, 13(1), 2013, p.5-p.14

Brealey R., Myers S., Principles of corporate finance, The McGraw-Hill Companies, 2003

Brigham E., Ehrhardt M., Financial management: theory and practice, South-Western ollege Pub, 2002

Brigham E., Houston J., Fundamentals of financial management, South-Western College Pub, 2008

BURDEN, R. and PROCTOR, T. (2000). “Creating a Sustainable Competitive Advantage through Training. Team Performance Management, 6(5/6), pp. 90-97.

Charles & Jones Strategic Management Theory: An Integrated Approach, Ninth Edition Charles W. L. Hill and Gareth R. Jones, South-Western Cengage Learning 2008

Charles W. L. Hill, International Business: Competing in the Global Marketplace, ISBN 9780007059867, Tata McGraw Hill, New Delhi, 2005

CONNER, K.R. (1991). “A historical Comparison of Resource-based Theory and Five Schools of thought within Industrial Organization Economics: Do We Have a New Theory of the Firm?” Journal of Management, 17(1), pp. 121-154.

COUSINS, P.D. (2005). “The Alignment of Appropriate Firm and Supply Strategies for Competitive Advantage”, International Journal of Operations & Production Management, 25(5), pp. 403-428.

DE PABLOS, P.O. (2006). “Transnational Corporations and Strategic Challenges: An Analysis of Knowledge Flows and Competitive Advantage”, The Learning Organization, 13(6), pp. 544-559.

FAHY, J. (2000). “The Resource-based view of the Firm: Some Stumbling-blocks on the Road to Understanding Sustainable Competitive Advantage”, Journal of European Industrial Training, 24(2/3/4), pp. 94-104.

FAHY, J., FARRELLY, F. and QUESTER, P. (2004). “Competitive Advantage through Sponsorship: A Conceptual Model and Research Propositions”, European Journal of Marketing, 38(8), pp. 1013-1030.

FLINT, G.D. and VAN FLEET, D.D. (2005). “A Comparison and Contrast of Strategic Management and Classical Economic Concepts: Definitions, Comparisons, and Pursuit of Advantages”, http://www.uvsc.edu/schools/business/facultyScholar/jbi/jbi_v3.html.

Friedlob G., Schleifer L., Essentials of financial analysis, Wiley, 2003

Helfert E., Financial analysis tools and techniques – a guide for managers, The McGraw-Hill Companies, 2001

Hitt, Michael A R. Duane Ireland, Robert E. Hoskisson (2007), Strategic management: Competitiveness and Globalization: Concepts & Cases, South Western Cengage Learning, Usa

Ismail, AI, Rose, RC, Abdullah, H & Uli, J. (2010), 'The relationship between organisational competitive advantage and performance moderated by the age and size of firms', Asian Academy of Management Journal, volume 15, No. 2, pp. 157-173.

KING, A.W. (2007). “Disentangling Interfirm and Intrafirm Causal Ambiguity: A Conceptual Model of Causal Ambiguity and Sustainable Competitive Advantage”, Academy of Management Review, 32(1), pp. 156-178.

King, A.W., W., S.F. & P, C.Z. (2001), 'Managing Organizational Competencies for Competitive Advantage: The Middle-Management Edge', The Academy of Management Executive, volume 15, pp. 95-106.

LIAO, S.H. and HU, T.C. (2007). “Knowledge Transfer and Competitive Advantage on Environmental Uncertainty: An Empirical Study of the Taiwan Semiconductor Industry”, Tech-novation, 27, pp. 402-411.

LIN, B.W. (2003). “Technology Transfer as Technological Learning: A Source of Competitive Advantage for Firms With Limited R&D Resources”, R&D Management, 33(3), pp. 327-341.

MA, H. (1999a). “Anatomy of Competitive Advantage: a SELECT Framework”, Management Decision, 37(9), pp. 709-718.

MA, H. (1999b). “Creation and Preemption for Competitive Advantage”, Management Decision, 37(3), pp. 259-267.

MA, H. (2000). “Competitive Advantage and Firm Performance”, Competitiveness Review, 10(2), p.16.

MA, H. (2004). “Toward Global Competitive Advantage: Creation, Competition, Cooperation and Co-option”, Management Decision, 42(7), pp. 907-924.

Maa, H., (2000), 'Competitive Advantage and Firm Performance', Competitiveness Review, vol 10(2), p. 16.

MILLS, J., PLATTS, K. and BOURNE, M. (2003). “Competence and Resource Architectures”, International Journal of Operations & Production Management, 23(9), pp. 977-994.

Pablos, D., (2006), 'Transnational Corporations and Strategic Challenges:An Analysis of Knowledge Flows and Competitive Advantage', The Learning Organization, volume 14, pp. 544-559.

PETERAF, M.A. (1993). “The Cornerstones of Competitive Advantage: A Resource-based View”, Strategic Management Journal, 14, pp. 179-191.

PETERAF, M.A. and BERGEN, M.E. (2003). “Scanning Dynamic Competitive Landscapes: A Market-based and Resource-based Framework”, Strategic Management Journal, 24, pp. 1027-1041.

Petrescu S., Financial and accounting analysis and diagnosis – Theoretical and Practical Guide -, CECCAR Publishing House, Bucharest, 2006

Phongpetra, V., & Johri, L.M. (2011), 'Impact of business strategies of automobile manufacturers in Thailand', International Journal of Emerging Markets, volume 6, pp. 17-37.

PORTER, M.E. (1985). Competitive Advantage. New York: Free Press.

PORTER, M.E. (1991). “Towards a Dynamic Theory of Strategy”, Strategic Management Journal, 12(8), pp. 95-117.

PORTER, M.E. and KRAMER, M.R. (2006). “Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility”, Harvard Business Review, December 2006.

Raduan, C.R, U, J, A, H & I, A.I., (2009), 'A Conceptual Framework of the Relationship between Organizational Resources, Capabilities, Systems, Competitive Advantage and Performance', Research Journal of Internatıonal Studıes, October, No. 12, pp. 45-58.

RAY, G., BARNEY, J.B. and MUHANNA, W.A. (2004). “Capabilities, Business Processes, and Competitive Advantage: Choosing the Dependent Variable in Empirical Tests of the Resource-based View”, Strategic Management Journal, 25, pp. 23-37.

Ray,G., Barney,J.B and Muhanna, W.A. (2004) “Capabilities, Business Process and Competitive Advantage: Choosing the Dependent Variable in Empirical Tests of Resource Based View” Strategic Management Journal Vol.25, No. 1, pp. 23-37.

RICHARD, O.C. (2000). “Racial Diversity, Business Strategy and Firm Performance: A Resource-based View”, Academy of Management Journal, 43(2), pp. 164-177.

Rose, R.C., Abdullah, H., & Ismad, A.I., (2010), 'A Review on the Relationship between Organizational Resources, Competitive Advantage and Performance', The Journal of International Social Research, Volume 3/11, Spring, pp. 488-498.

Ross, S., Westerfield R., Jaffe, J., Corporate finance, McGraw-Hill/Irwin, 2002

Schendel D, Ansoff I, Channon D. 1980. Statement of editorial policy. Strategic Management Journal 1(1): 1–5. Schendel D, Channon D. 1986. Comment from the editors. Strategic Management Journal 7(1): 1–2.

Schendel D. 1991. Introduction to the special issue on global strategy. Strategic Management Journal, Summer Special Issue 12: 1–3.

Schendel D. 1994. Introduction to the summer 1994 special issue on strategy: search for new paradigms. Strategic Management Journal, Summer Special Issue 15: 1–5.

Stancu I., Finances, 4th Edition, Economic Publishing House, Bucharest, 2007

Vasile I., Ghinea M., The financial situation of the enterprise, Economic Tribune Magazine, V.19, No.8/ 2008

Vintila G., Financial management of the enterprise, Didactic and Pedagogic Publishing House, Bucharest, 2005

Wang, Y., & Lo., H.P, (2003), 'Customer-focused performance and the dynamic model for competence building and leveraging A resource-based view', Journal of Management Development, volume 22, pp. 483-526.

Wiggins, Robert and Ruefli, Timothy, “Sustained Competitive Advantage: Temporal Dynamics and the Incidence and Persistence of Superior Economic Performance”, Organization Science, 2002, Vol. 13, No. 1, 82-105.

https://www.strategicmanagementinsight.com/topics/competitive-advantage.html

http://www.pex.ps/PSEWebSite/English/Default.aspx




DOI: https://doi.org/10.23956/ijermt.v6i7.180

Refbacks

  • There are currently no refbacks.