Design as a source of international competitive advantage for SMOPEC firms. (2015)

• Record Type: Journal Article
• Authors: Liu, Yang; Nousiainen, Taru; Imeri, Shpend
• Is Part Of: International journal of innovation and learning. Volume 18:Number 3(2015)
• Page Start: 277
• Page End: 298
• Publication Date: 2015
• Subjects: design process -- design resources -- innovation -- learning -- competitive advantage -- small and open economies -- SMOPEC -- industrial design -- product design -- RBV -- resource based view; Knowledge management -- Periodicals; Learning -- Periodicals; Diffusion of innovations -- Periodicals; 006.33
• Languages: English
• ISSNs: 1471-8197

Abstract

Since the rise of the international markets, firms need to be more creative and dynamic in order to gain success internationally. Design as an intangible non-price factor offers efficiently a unique way to achieve an international competitive advantage over competitors. This study presents theoretical consideration of design, its dimensions, and how design can provide a distinct competitive advantage in ever-increasing global competition. The theoretical consideration helps form a conceptual framework, conducted by descriptive research, emphasising the internal and external influences that affect the ways of using design as a source of international competitive advantage amongst small and open economies (SMOPECs). This study has found that design resource as firm's internal resource needs to be valuable and rare, and offer a unique way to generate a value creating competitive strategy. To get the utmost benefits of design, it should be used strategically and linked to a firm's business strategy and other key functions. The theoretical consideration further showed explicitly that a positive correlation exists between design and firm's business success. However, it becomes clear that there are differences between the insight of knowledge and the reality of using it.