research paper- Cathay Pacific airways

Financial

Physical

Human

General Organizational

Excellent cash flow Strong balance sheet

Superior past performance Strong links to financiers

State-of-the-art plant or machinery Superiority in a value-adding

process or function Superior locations or raw materials

Outstanding products and/or services

Superior CEO characteristics Experienced managers

Well trained, motivated, loyal employees

High- performance structure or culture

Excellent reputation or brand name Patents

Exclusive contracts Superior linkages with stakeholders

Knowledge and Learning Superior technology development Excellent innovation processes and organizational entrepreneurship Outstanding learning processes

1. Does the resource or capability have

value in the market? 2. Is the resource or capability unique? 3. Is there a readily

available substitute for the resource or

capability?

6. Is the resource or capability difficult or costly to imitate?

4. Do organizational

systems exist that allow realization of

potential? 5. Is the

organization aware of and realizing the

advantages?

Potential Competitive

Advantage or Core

Competency*

Firm Resources

and Capabilities

Financial

Physical

Human

Knowledge and Learning

General Organizational

The Competitive

Advantage or Core

Competency Is Sustainable

Actual Source of

Competitive Advantage

Financial

Physical

Human

General Organizational

Strong Financial Position

State-of-the-art Plant and Machinery

Superior Functional Processes

Superior Products and Services

High Quality Managers High Quality Employees

Better Training

Strong Brand Better Reputation

Strong Stakeholder Relationships

Knowledge and Learning More Innovation More Learning

•Tangible Resources

• Intangible Resources

• Industry Differences

• Envision what the organization should be like in the future • Communicate this vision to followers • Empower followers to enact the vision

• Serve as coach, teacher and facilitator • Help organizational members question their assumptions

• Take an active role in the organization

• Includes outsiders

• Includes insiders

• Organizational structure can greatly influence performance

• Organizational Culture

• Employees and the way they are managed are important sources of competitive advantage

• Effective HR Practices

•Knowledge is an intangible asset • Core vs. Integrative Knowledge

• Codified vs. Tacit Knowledge