Designing a competitive advantage model by explaining the role of innovation speed and creative destruction in FMCG industry

Document Type : Original Article

Authors

1 Assistant Professor, Faculty of Management and Economic, Tarbiat Modares University, Tehran, Iran

2 Master of Business Management, Faculty of Management and Economic, Tarbiat Modares University, Tehran, Iran

Abstract

The success and failure of firms in creating a competitive advantage now depends on environmental factors. This is very important for entering international markets. The competitiveness of the FMCG industry and the increasing intensity of competition in this industry have encouraged companies to use innovation to gain a competitive advantage. The aim of this study was to design a model to create a competitive advantage using the variables of innovation speed, creative destruction, market turbulence and intensity of competition in the consumer goods industry and to investigate the moderation effect of creative destruction in relation to innovation speed and competitive advantage in this industry. The statistical population of the study is the top active companies in the consumer goods industry, which are ranked and introduced by the Industrial Management Organization. The statistical sample is 84 companies that were selected by available sampling method. The data collection tool is a questionnaire which reliability has been confirmed with Cronbach's alpha of 0.96. The data analysis was done applying structural equation modeling by Smart-PLS 2.0. The results show that market turbulence and competition intensity with coefficients of 0.25 and 0.23, respectively, have an indirect positive effect on creating a competitive advantage. Innovation speed and operational flexibility with direct coefficients of 0.41 and 0.29, respectively, directly create a competitive advantage. Also, the creative degradation variable positively moderate the relationship between innovation speed and competitive advantage with a coefficient of 0.26.

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References

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Journal of International Business Administration
Volume 4, Issue 3 - Serial Number 15
September 2021
Pages 145-165

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History

  • Receive Date: 14 February 2021
  • Revise Date: 19 May 2021
  • Accept Date: 20 May 2021

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