The Impact of Competitive Strategies on Firm Performance: The Mediating Role of Market Orientation and Innovation: An Empirical Study of the Georgian Beverage Sector — Oak Academic Publishing
Research ArticleOpen AccessGoogle Scholar indexed
The Impact of Competitive Strategies on Firm Performance: The Mediating Role of Market Orientation and Innovation: An Empirical Study of the Georgian Beverage Sector
Department of Business Administration, International Black Sea University, Tbilisi, Georgia
1 Department of Business Administration, International Black Sea University, Tbilisi, Georgia
This research paper delves into the competitive landscape of the Georgian beverage industry, where rivalry is strong and cutthroat. The emphasis of this article is mostly on the importance of market orientation and innovation in determining the success of competitive strategies in this sector. Advancing these perspectives is data from the area’s beverage industry, which has seen a surge in development, providing insight towards the obstacles companies experience in keeping up with their competitors. The study employs Structural Equation Modelling (SEM) Smart-PLS with 325 respondents from the beverage industry. By keeping in sight how market orientation and innovation on their own authority yield mediating effects, light can be shed on what matters for a firm to triumph in this demanding industry. The conclusion drawn suggests that companies embracing a realistic market-oriented outlook in their product planning and advertising, combined with centering on novelty, are better placed to stay successful within this fiercely competitive business space.
Alzoubi, H., Ahmed, G., Al-Gasaymeh, A., & Kurdi, B. (2020). Empirical Study on Sustainable Supply Chain Strategies and Its Impact on Competitive Priorities: The Mediating Role of Supply Chain Collaboration. Management Science Letters, 10, 703-708. https://doi.org/10.5267/j.msl.2019.9.008
Andotra, N., & Gupta, R. (2016). Impact of Environmental Turbulence on Market Orientation-Business Performance Relationship in SSIs. Global Business Review, 17, 806- 820. https://doi.org/10.1177/0972150916645679
Barney, J. B. (1997). Gaining and Sustaining Competitive Advantage. Addison-Wesley Pub. Co.
Beigi, S., Dostar, M., Safari, M., & Rashnavadi, Y. (2021). Performance Gap Analysis under the Influence of Management Innovation and Business Model Innovation. Management and Business Research Quarterly, 20, 19-35. https://doi.org/10.32038/mbrq.2021.20.02
Brouthers, K. D., Brouthers, L. E., & Werner, S. (2008). Resource-Based Advantages in an International Context. Journal of Management, 34, 189-217. https://doi.org/10.1177/0149206307312508
Chai, Q., Xiao, Z., & Zhou, G. (2020). Competitive Strategies for Original Equipment Manufacturers Considering Carbon Cap and Trade. Transportation Research Part D: Transport and Environment, 78, Article ID: 102193. https://doi.org/10.1016/j.trd.2019.11.022
Chen, J., & Liu, L. (2018). Profiting from Green Innovation: The Moderating Effect of Competitive Strategy. Sustainability, 11, Article No. 15. https://doi.org/10.3390/su11010015
Chi, T. (2013). Market Orientation, Firm Strategy, and Business Performance: An Empirical Study of Chinese Apparel Industry (No. 11941775). Iowa State University, Digital Repository. https://doi.org/10.31274/itaa_proceedings-180814-860
Correia, R. J., Dias, J. G., & Teixeira, M. S. (2021). Dynamic Capabilities and Competitive Advantages as Mediator Variables between Market Orientation and Business Performance. Journal of Strategy and Management, 14, 187-206. https://doi.org/10.1108/JSMA-12-2019-0223
Dash, G., & Paul, J. (2021). CB-SEM vs PLS-SEM Methods for Research in Social Sciences and Technology Forecasting. Technological Forecasting and Social Change, 173, Article ID: 121092. https://doi.org/10.1016/j.techfore.2021.121092
Dedan, K., Consolata, N., Martin, O., John, Y., & Muranga, N. J. (2018). The Joint Effect of Competitive Strategies, Business Environment and Corporate Image on Performance of Large Manufacturing Firms in Kenya. Journal of Economics and Business, 1, 164-170. https://doi.org/10.31014/aior.1992.01.02.15
Dobni, C. B., & Luffman, G. (2003). Determining the Scope and Impact of Market Orientation Profiles on Strategy Implementation and Performance. Strategic Management Journal, 24, 577-585. https://doi.org/10.1002/smj.322
El-Mashaleh, M. S., Edward Minchin Jr., R., & O’Brien, W. J. (2007). Management of Construction firm Performance Using Benchmarking. Journal of Management in Engineering, 23, 10-17. https://doi.org/10.1061/(ASCE)0742-597X(2007)23:1(10)
Falk, R. F., & Miller, N. B. (1992). A Primer for Soft Modeling. University of Akron Press.
Fatikha, C., Rahayu, M., & Sumiati, S. (2021). Effect of Entrepreneurship Orientation and Market Orientation on Marketing Performance through Competitive Advantage. Journal Aplikasi Manajemen, 19, 448-458. https://doi.org/10.21776/ub.jam.2021.019.02.20
Fornell, C., & Larcker, D. F. (1981). Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics. Journal of Marketing Research, 18, 382-388. https://doi.org/10.2307/3150980
Gefen, D., & Straub, D. (2005). A Practical Guide to Factorial Validity Using PLS-Graph: Tutorial and Annotated Example. Communications of the Association for Information Systems, 16, Article No. 5. https://doi.org/10.17705/1CAIS.01605
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to Use and How to Report the Results of PLS-SEM. European Business Review, 31, 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Hamel, G., & Prahalad, C. K. (1990). Strategic Intent. Mckinsey Quarterly, 1, 36-61.
Imran, M., Pili, R., Usman, M., & Haglind, F. (2020). Dynamic Modeling and Control Strategies of Organic Rankine Cycle Systems: Methods and Challenges. Applied Energy, 276, Article ID: 115537. https://doi.org/10.1016/j.apenergy.2020.115537
Jean, R.-J., Kim, D., Chiou, J.-S., & Calantone, R. (2018). Strategic Orientations, Joint Learning, and Innovation Generation in International Customer-Supplier Relationships. International Business Review, 27, 838-851. https://doi.org/10.1016/j.ibusrev.2018.01.007
Jusoh, R., & Parnell, J. A. (2008). Competitive Strategy and Performance Measurement in the Malaysian Context: An Exploratory Study. Management Decision, 46, 5-31. https://doi.org/10.1108/00251740810846716
Kankam-Kwarteng, C., Osman, B., & Donkor, J. (2019). Innovative Low-Cost Strategy and Firm Performance of Restaurants: The Moderation of Competitive Intensity. Asia Pacific Journal of Innovation and Entrepreneurship, 13, 266-281. https://doi.org/10.1108/APJIE-05-2018-0034
Kılıç, F. (2022). Effect of Competitive Strategies on Firm Performance and Mediating Role of Product Innovation. International Journal of Business and Management, 17, 93-102. https://doi.org/10.5539/ijbm.v17n3p93
Kim, W. C., & Mauborgne, R. (1997). Value Innovation: The Strategic Logic of High Growth. Harvard Business Review.
Kim, Y. (2004). Relation between Market Orientation and Market Environment et al., in Korean Firms Entering to North American Markets. International Journal of Asian Management, 3, 37-51. https://doi.org/10.1007/s10276-004-0019-8
Kimiti, P. G., Muathe, S. M. A., & Murigi, E. M. (2021). Cost Leadership Strategy: A New Game Strategy for Competitive Advantage in Milk Processing Firms in Kenya. European Scientific Journal, 17, 296. https://doi.org/10.19044/esj.2021.v17n23p296
Lado, N., Maydeu-Olivares, A., & Rivera, J. (1998). Measuring Market Orientation in Several Populations: A Structural Equations Model. European Journal of Marketing, 32, 23-39. https://doi.org/10.1108/03090569810197408
Lai, C. J. (2016). The Effect of Individual Market Orientation on Sales Performance: An Integrated Framework for Assessing the Role of Formal and Informal Communications. Journal of Marketing Theory and Practice, 24, 328-343. https://doi.org/10.1080/10696679.2016.1170526
Lin, Y., Luo, J., Ieromonachou, P., Rong, K., & Huang, L. (2019). Strategic Orientation of Servitization in Manufacturing Firms and Its Impacts on Firm Performance. Industrial Management & Data Systems, 119, 292-316. https://doi.org/10.1108/IMDS-10-2017-0485
Mashavira, N., Chipunza, C., & Dzansi, D. Y. (2021). Managerial Political Competencies and the Performance of Small and Medium-Sized Enterprises in South Africa. Acta Commercii, 21, a884. https://doi.org/10.4102/ac.v21i1.884
Memon, M. A., Cheah, J.-H., Ting, H., Chuah, F., & Cham, T. H. (2021). PLS-SEM Statistical Programs: A Review. Journal of Applied Structural Equation Modeling, 5, 1-14. https://doi.org/10.47263/JASEM.5(1)06
Mohammed Kamaruddeen, A., Yusof, N., Said, I., & Pakir, A. (2012). Organizational Factors and Innovativeness of Housing Developers. American Journal of Applied Sciences, 9, 1953-1966. https://doi.org/10.3844/ajassp.2012.1953.1966
Murray, J. Y., Gao, G. Y., & Kotabe, M. (2011). Market Orientation and Performance of Export Ventures: The Process through Marketing Capabilities and Competitive Advantages. Journal of the Academy of Marketing Science, 39, 252-269. https://doi.org/10.1007/s11747-010-0195-4
Naheed, K. (2018). Impact of Market Orientation on Firm Performance; the Mediating Role of Innovation Strategies in Excellence Awarded Corporate Sector. IBT Journal of Business Studies, 14, 129-142. https://doi.org/10.46745/ilma.jbs.2018.14.01.11
Nair, A. R., & Anand, B. (2020). Monetary Policy and Financial Stability: Should Central Bank Lean against the Wind? Central Bank Review, 20, 133-142. https://doi.org/10.1016/j.cbrev.2020.03.006
Ngah, R., & Wong, K. Y. (2020). Linking Knowledge Management to Competitive Strategies of Knowledge-Based SMEs. The Bottom Line, 33, 42-59. https://doi.org/10.1108/BL-08-2019-0105
Ong, T. S., Lee, A. S., & Teh, B. H. (2021). Turning Environmental Strategies into Competitive Advantage in the Malaysian Manufacturing Industry: Mediating Role of Environmental Innovation. Pertanika Journal of Social Sciences and Humanities, 29, 1293-1312. https://doi.org/10.47836/pjssh.29.2.29
Pertusa-Ortega, E. M., Molina-Azorín, J. F., & Claver-Cortés, E. (2010). Competitive Strategy, Structure and Firm Performance: A Comparison of the Resource-Based View and the Contingency Approach. Management Decision, 48, 1282-1303. https://doi.org/10.1108/00251741011076799
Peterson, R. A. (1994). A Meta-Analysis of Cronbach’s Coefficient Alpha. Journal of Consumer Research, 21, 381-391. https://doi.org/10.1086/209405
Porter, M. E. (1985). Technology and Competitive Advantage. Journal of Business Strategy, 5, 60-78. https://doi.org/10.1108/eb039075
Sayyad, N. (2017). The Impact of Competitive Strategies, and Strategic Human Resource Management on Firm Performance of Palestine. Archives of Business Research, 5, 1-5. https://doi.org/10.14738/abr.51.2689
Skordoulis, M., Kyriakopoulos, G., Ntanos, S., Galatsidas, S., Arabatzis, G., Chalikias, M., & Kalantonis, P. (2022). The Mediating Role of Firm Strategy in the Relationship between Green Entrepreneurship, Green Innovation, and Competitive Advantage: The Case of Medium and Large-Sized Firms in Greece. Sustainability, 14, Article No. 3286. https://doi.org/10.3390/su14063286
Soper, D. S. (2021). A-Priori Sample Size Calculator for Structural Equation Models. https://www.danielsoper.com/statcalc/calculator.aspx?id=89
Tareque, M. A., & Islam, N. (2023). The Relationship between Leadership Behaviour and Firm Performance in the Ready-Made Garments Industries of Bangladesh. European Journal of Business and Management Research, 8, 1-16. https://doi.org/10.24018/ejbmr.2023.8.2.1855
Tavalaei, M. M., & Santalo, J. (2019). Pure versus Hybrid Competitive Strategies in the Airport Industry. Transportation Research Part A: Policy and Practice, 124, 444-455. https://doi.org/10.1016/j.tra.2019.04.015
van Lieshout, J. W. F. C., van der Velden, J. M., Blomme, R. J., & Peters, P. (2021). The Interrelatedness of Organizational Ambidexterity, Dynamic Capabilities and Open Innovation: A Conceptual Model towards a Competitive Advantage. European Journal of Management Studies, 26, 39-62. https://doi.org/10.1108/EJMS-01-2021-0007
Verbeke, A., & Brugman, P. (2009). Triple-Testing the Quality of Multinationality-Per- formance Research: An Internalization Theory Perspective. International Business Review, 18, 265-275. https://doi.org/10.1016/j.ibusrev.2009.01.005
Wang, Y., Xue, X., & Guo, H. (2022). The Sustainability of Market Orientation from a Dynamic Perspective: The Mediation of Dynamic Capability and the Moderation of Error Management Climate. Sustainability, 14, Article No. 3763. https://doi.org/10.3390/su14073763
Wasko, M. M., & Faraj, S. (2005). Why Should I Share? Examining Social Capital and Knowledge Contribution in Electronic Networks of Practice. MIS Quarterly, 29, 35-57. https://doi.org/10.2307/25148667
Weerawardena, J., & Coote, L. (2001). An Empirical Investigation into Entrepreneurship and Organizational Innovation-Based Competitive Strategy. Journal of Research in Marketing and Entrepreneurship, 3, 51-70. https://doi.org/10.1108/14715200180001477
Yang, J., & Ying, L. (2015). A Study on the Effects of Knowledge Management on Innovation Strategies and Competitive Advantages. Acta Oeconomica, 65, 159-171. https://doi.org/10.1556/032.65.2015.s2.12
Zeng, S. (2019). Research on Competitive Strategy—Case of DDL Construction Company. American Journal of Industrial and Business Management, 9, 743-763. https://doi.org/10.4236/ajibm.2019.93049 https://mrdi.gov.ge/pdf/5f88015196bdf.pdf/RDP%202018%20Annual%20Report.pdf