Lecture 6 Flashcards
What is the difference between Porter’s Five Forces model and the Resource-Based View (RBV)?
Porter’s Five Forces: Focuses on external industry factors influencing competition, such as buyer power and threat of substitutes.
RBV: Emphasizes internal resources and capabilities as the key to gaining competitive advantage.
Key Distinction: Porter looks outward at the industry, while RBV looks inward at the firm’s unique resources.
What are dynamic capabilities in the RBV context?
Dynamic capabilities refer to a firm’s ability to adapt and leverage resources to rapidly changing environments, fostering agility, modularization, and resilience in supply chains.
What is the relational view in corporate strategy?
An extension of RBV, the relational view suggests that competitive advantage arises from inter-organizational relationships, creating relational rents through:
1. Relation-specific assets.
2. Knowledge-sharing routines.
3. Complementary resources.
4. Effective governance mechanisms.
What is Transaction Cost Economics (TCE), and how does it apply to SCM?
TCE evaluates whether activities should be conducted internally or outsourced by comparing coordination costs. It supports decisions about vertical integration versus outsourcing.
What are the three types of partnerships in supply chain management, according to Lambert and Knemeyer (2004)?
- Type I: Limited integration; focuses on operational efficiency.
- Type II: More strategic; involves shared goals and coordinated planning.
- Type III: Full integration; deep collaboration with mutual trust and shared resources.
What are relational rents, and how are they created?
Relational rents are joint profits generated through partnerships that individual firms cannot achieve alone. They are created by:
1. Combining complementary resources.
2. Investing in relation-specific assets.
3. Sharing knowledge.
4. Establishing effective governance mechanisms.
How does Starbucks create relational rents in its supply chain?
Starbucks builds partnerships with suppliers to share tacit knowledge, invest in relation-specific assets, and align incentives, enabling superior quality and sustainability in its supply chain.
How can LEGO’s development be explained through Porter’s Five Forces and the RBV?
Porter’s Five Forces: LEGO leveraged its position in a competitive industry by managing buyer and supplier relationships.
RBV: LEGO capitalized on its internal resources, such as design expertise and innovation capabilities, to maintain a competitive edge.
What did Dyer and Singh (1998) conclude about the relational view?
- Firms achieve relational rents through:
- Relation-specific assets.
- Knowledge-sharing routines.
- Complementary resources.
- Effective governance.
- These rents provide sustainable competitive advantages, emphasizing the importance of collaboration and trust.
What were the findings of Lambert and Knemeyer (2004) regarding supply chain partnerships?
- Successful partnerships require clear alignment of goals, governance mechanisms, and mutual investments.
- Partnerships can enhance efficiency, innovation, and adaptability when managed effectively.
What is the economic rationale for partnerships in SCM?
Partnerships reduce transaction costs, create relational rents, and enable mutual learning and innovation. They allow firms to combine complementary resources and align strategies for competitive advantage.
