Delta model and the Conceptual Framework
BUSI 240-Organizational Behavior 1
Liberty University
2022
Delta Model
Hax and Wilde II (2003) developed a strategy framework that called Delta Model. Delta being the
Greek letter that stands for transformation and change. To integrate technology in HCM practices,
Hax and Wilde II (2003) felt that the new technology surrounding the internet provides novel and
effective ways to link to the customers (both internal and external) and to the extended enterprise,
opening up new sources of strategic positioning that should be properly evaluated (Hax, 2010).
The Delta Model has the ability to complement the perspectives of Porter’s frameworks and the
Resource-Based View of the firm and provide the integrative glue that may result in one unified
strategy framework. Team FME (2013) states five key factors that Porter’s Model uses to identify
and evaluate potential opportunities and risks. The Porters forces include: Three horizontal
forces that comprises: The threat of substitute produce or services; the threat of established rivals
and the threat of new entrants; and the horizontal forces include: the bargaining power of suppliers
and the bargaining power of customers. The Resource-Base View (RBV) was articulated into
coherent theory by Wernerfelt (1984). The theory states that competitive advantage of a firm lies
primarily in the application of rare, non-substitutable, imperfectly imitable, and valuable intangible
and tangible resources at the firm’s disposal (Francisco, 2015). The top triangle, system lock-in is
addressing full network as the relevant scope, and gaining of complementary share as the ultimate
objective and the system economics as the driving force. The Delta Model’s customer bonding is
the driving force in strategy development. The classic strategy frameworks emphasize a product
orientation. They pit competitor against competitor in a rivalry where the outcome is determine by
who has the best product (Hax, 2010).
The Delta model supports employee performance in the study. It was chosen since it combines
Porter’s frameworks and the Resource-Based View, as underpinning theory for strategic
positioning. The Delta Model strikes a balance between the external fit, internal fit and fit between
the macro and micro level of HCM for organizations competitiveness and sustainable performance.
The argument is that, ceteris paribus human capital enhances performance, however, there are
other underlying factors that can enhance performance. The predicted and unpredicted factors
HCM can arise due internal or external forces in a business environment, which calls for
contingency and strategic approach to promote competitiveness. Figure 2.3 shows the Delta Model.
System lock-in: System
economics; market dominance and
achieving complementor share
Total customer solutions
- Customer economics
- Cooperation
- Achieving customer share
Best product
-Product economics
- Rivalry
- Achieving product share
Enabled effective IT
Figure 2.3: The Triangle – Three Distinct Strategic Positions
Source: Adapted from Hax (2022)
Control Theory (The GAP-ACT MODEL).
Control theory originated with Norbet Wiener’s (1948) Cybernetics. In 1950’s and 1960’s
problems were emerging in the field of engineering and economist that were not covered in any
existing theories. Control theory is not just used in engineering, it also relates to business by
learning ways to streamline or optimize processes (Redmond, 2016). People are living control
systems to use, as noted by William T. Powers. This means that they act to control certain aspects
of the world about them. Nickols (2013) explains that in general, this model suggests that as
performers, we seek to control the value of some variables in the workplace (T). That might be
cost, productivity, sales volume or any innumerable variables. The variable we seek to control is
control variable. What we know through control theory, we know through our perceptions and it is
this perceived condition (P) that we compare with our (G) or reference condition.
The discrepancies between our goal or reference conditions for a variable and the condition we
perceive lead to action (A). Our actions are helped or hindered by other conditions (C), to a
greater or loser degree, and the effects of our actions on the controlled variable are the some of our
actions and these other conditions (Nickols (2013). The Gap-Act model supports employee
performance, which is the dependent variable in the study. It is relevant to the study since the
employees’ performance is influenced by the environment in which they work, and that the
environment influences their actions, ability and professionalism. Figure 2.4 shows the Gap- Act
model.
GC
T
A
The person
The environment
P
Figure 2.4: A Control Theory View of Human Behavior and Performance
Source: Adapted from Nickols (2022).
In conclusion, the theoretical review discussed both theories and models that support each of
the explained and explanatory variables in the study, with the human capital theory and delta
model as the main underpinning theory and model. Vermaas (2014) described descriptive
design theory as a scientific theory that binds together knowledge of what is regularly taken as
a design practice as they occur in the world. In addition, theories and the models used in the
study aimed at enhancing understanding, explaining and predicting of and about these design
practices. The study presents the conceptual framework in Figure 2.5 to provide pictorial
presentation of structure/concept of the study, showing the dependent and independent
variable.
Conceptual Framework
Regoniel (2015) explained that conceptual framework represents the researcher’s synthesis of
literature on how to explain phenomena. Were (2013), who defined it as a pictorial
representation, or relationships between empirical properties. Figure 2.6 illustrates the
independent variable, dependent variable and the indicators. Pedace, (2013) explained that
independent variables are the factors which cause changes in the dependent variable.
Independent Variable Dependent variable
Figure Conceptual Framework
Influence
Skills Development
employability skills,
on-boarding,
skills matching
skills anticipation
IT systems
Knowledge Management
- acquisition
– dissemination,
collaboration,
information sharing,
IT systems
Talent Acquisition
– hiring techniques,
- sources of hiring,
-talent development,
job placement,
IT systems
Employee Performance
Employee Value Proposition;
Workplace ergonomics;
Service delivery
-Reduction in customer
complaints
Product innovation
Training
-Needs analysis;
Training programme;
implementation techniques
-training evaluation
IT Systems
Employee Engagement
-Job Design
work life balance,
communication,
total reward system,
IT systems
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