Competitive weapon by: renewal organaization

Prepared By

Kifaya Abdallah (Ph.D students)

Email: erada2020@yahoo.com

2013

Contents Page

Abstract

Introduction

1. Literature review

1.1: Organization Strategy: 1.1.1: thinking strategically 1.1.2: The Competitive Environment 1.1.3: Strategic Approach 1.1.4: competitive intensity

1.2.firm competitiveness 1.2.1: The defining of competitive advantage: 1.5.2: the competences of competitive advantage 1.5.3: Dimensions of Competitive Advantage 1.5.4:M. Porter & Competitive Advantage 1.5.5: The Measures of Competitive Advantage

1.3: renewal organization: 1.2.1: the defined of Renewal 1.2.2: Difference between Renewal and Reform 1.2.3: the perspective of Renewal 1.2.4: the dimensions of renewal 1.2.5: the characteristics of renewal 1.2.6: the processes of Renewal 1.2.7: the types of strategic renewal: 1.2.8: Process and Content Aspects of Strategic Renewal 1.2.9: the implications of Renewal

1.7. The research problem and objective

2. Operational Definition and Measurement of Variables:

3. Model of study:

4. .research Methodology

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7. Conclusion

References:

Abstract :

Introduction:

In the global competitive business scenario, banks, among other organizations, have been facing many changing challenges caused by globalization, liberalization, technological advancements, andchanging customers’ technological-driven expectations (Abdullah Kaid, 2011)A complex and dynamic modern environment is inevitably difficult to forecast, the inherent uncertainties can make it highly unpredictable and potentially chaotic. Individual managers would develop their environmental and strategic awareness through experience and perception, and by thinking about their observations and experiences. It is particularly important to assess the significance of what happens and what can be observed to be happening. However, in considering future strategic changesthere will be an additional need to supplies, customers, competitors, demand, technology, government legislation and so on. Managers who are encouraged to think about future changes, toask questions and to query assumptions will increase their insight and awareness and this should help decision making. (Papulove, 2006)

1. Literature review:

Admittedly in recent years change in the business environment hasbecome a way of life. Advancements in technology, the pace of competition, globalization, the need to control cost and increaseefficiency coupled with increasing customer expectations mean that organizations have to evolve and regenerate in order to survive. (Cook, 2004)

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According to Ansoff, the extent to which the environment is changeable or turbulent depends on six factors: changeability of the market environment, speed of change, intensity of competition, fertility of technology, discrimination by customers, and pressures from governments and influence groups. He suggests that the more turbulent the environment is, the more aggressive the firm must be in terms of competitive strategies and entrepreneurialism or change orientation if it is to succeed.(Papulove, 2006)

1.1 The Competitive Environment:Whilst it is essential for all managers to have some insight intohow their organization is affected by the environment, it is alsodesirable for them to consider how some of the environmental forces might be influenced and managed to gain benefits for the organization. (Papulove, 2006)

ه ن ارة� على أ� �الاش �در ب ج� �1وي� .The factors that contributed to success of firms in the past might no longer be relevant in today’s turbulent business. (sakchutchawan, 2011).

: ن# مات� أ� ظ' ن# على ألمن �عي ت� �أ وي 2هدOrganizations must be able to understand the complexity and trends of the changing environment. Some of the changes will be the result of external forces. Others will be the outcomes of actions taken by organization itself. From this learning, organizations must be able to manage change successfully, changing technologies, processes and architecture to maintain a successful match with the environment. In turn this should createpositive and beneficial competitive outcomes. (Papulove, 2006)

To succeed long term, organizations must compete effectively and out-perform their rivals in a dynamic environment. To accomplish this they must find suitable ways for creating and adding value for their customers. (Papulove, 2006)

(Competitive advantage) ه� �سي اف ن ة� ألت6 ز �ق� ألمي �ي حق� سعى لت6 �ى� ت مات� ألت� ظ' ن# على ألمن F3أ4

Their competitive offering should comprise: • The ability to meet the recognized key success factors for therelevant industry or market• Distinctive competencies and capabilities which yield some formof competitive advantage, and• The ability and willingness to deploy these competencies and capabilities to satisfy the special requirements of individual customers, for which a premium price can often be charged.Strategic success requires a clear understanding of the needs of the market, and the satisfaction of targeted customers more effectively and more profitably than by competitors. (Papulove, 2006)

1.1.2: firm competitiveness:

ها عدة� أمور طلب� من ن� �ه� وي �سي اف ن ه� للت6 �ان ج� عه� للاست6 �Tي ه� وسز �ه� وعملي �طوأت� علمي سلك\ خ �مات� أن# ت ظ' وصى� ألدرأشات� على ألمن �4ت

Organizations should actively look for opportunities to exploit their strategic abilities, adapt and seek improvements in every area of the business, building on awareness and understanding of current strategies and successes. Organizations must be able to act quickly in response to opportunities and barriers. (Papulove,2006)

ها5 ت�� ز �ق� مي �ي حق� �اء وي ن ى� ألسوق� لت� ن# ف �سي اف ها مع ألمن �س ت اف ن ى� شت6 ه� ألت� �ي ق �و ألكت ه� أ� ق� �Tي جدد ألطر �ن# ي عمال أ� مات� ألا� ظ' على منمه� ظ' ه ألمن �ي عمل ف �ي� ي ى� ألسوق� ألد س ف اف ن ه� ألت6 �ي ق �عمال هى� كت صاغ حولها وحدة� ألا� �ى� ت ه� ألت� �شاسي ن# ألملامح ألا� ا� �، علما ب ه� �سي اف ن ألت6

جدد لها �ف ي �ها مسمىcompetitive business strategy وكت �طلق� علن �ا ما ت الن� لك\ ع ن# لد �سي اف ي�ن# ألمن �عا ب �موقاحه� لها ة� مع ألفرص ألمن� ز �ه� ألممي �لي ها ألدأح �درأت �له� ق �اب لال مق� ه� من# ح �سي اف ن 6ة� ي ز �لق� لها مي ج �ن# ي ع أ� �طت سن� �ى� ت حه� هى� ألت� �اج مه� ألن ظ' أن# ألمن

ه� �سي اف ن ة� ألت6 ز �ف ألمي �عري� �ا ألى ي ودب� ق� �أ ي ، وهد مه� ظ' ها ألمن �س علن اف ن ى� شت6 سس ألت� د ألا� �جدب� �ل ي �ى� ألسوق� من# أح فThe defining of competitive advantage:Competitive advantage is defined as the “capability of an organization to create a defensible position over its competitors”. It comprises capabilities that allow an organization to differentiate itself from its competitors and it

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is an outcome of critical management decisions. The empirical research clearly identifies a number of manufacturing capabilities that help organizations develop and maintain their competitive advantage. (Abdu; kareem, 2011)

Papulove (2006) show that: Real competitive advantage implies companies are able to satisfy customer needs more effectively than their competitors. It is achieved if and when real value is added for customers. A business must add value if it is to be successful. The important elements in adding value are:• Understanding and being close to customers, in particular understanding their perception of value• A commitment to quality• A high level of all-round service• Speedy reaction to competitive opportunities and threats

اة ها أدب� �ز ألن �ي ش� عاد ت �اصز وأي ه� عن �سي اف ن ة� ألت6 ز �6للميDimensions of Competitive Advantage: Abdulkareem S(2011)Definitions and measurement items of competitive advantage dimensions.- Price: The ability of an organization to compete against major competitorsbased on low cost / price” (Li etal.,2006, p. 120)- Quality: The ability of an organization to offer product quality and performance thatcreates higher value for customers” (Koufteros, 1995)- Delivery: dependability The ability of an organization to provide on time the type and volumeof product required by customer(s)” (Li et al., 2006, p. 120)- Product innovation: The ability of an organization to introducenew products and features inthe market place” (Koufteros, 1995)- Time to market: The ability of an organization to introduce newproducts faster than major competitors”)

ه� �سي اف ن ة� ألت6 ز �اس ألمي �ن س لق� ي� ب¡� ا لاص مق� ج ا أست� مكن �ه� ي �سي اف ن عاد ألت6 �ي ان# ألا� �ن ¤عد ي �7ي1.5.5: The Measures of Competitive Advantage:

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Competitiveness is the ability to provide products and services, as effectively as, or more effectively and efficiently than the relevant competitors.Measures of competitiveness include firm profitability, the firm’s export quotient (exports or foreign sales divided by output), and regional or global market share. Performance in the international marketplace provides a direct measure of a firm’s competitiveness. Competitiveness is also the ability to match or even beat the world’s best firms in cost and quality of goods or services. Measuring competitiveness is often difficult.Measures of competitiveness include firm profitability and measures of cost and quality. (Omerzel, 2011)

ن# و �Tي ر ها على أل̈اخ �وق� ت ق ت� 6دة� ي �رب� ة� ف ز �لق� مي ى»� ح عت �ه� ي �سي اف ن ة� ألت6 ز �ن# ألمي Fلاصه� أ 8وكجن# �سي اف ها على ألمن �ن وق� ف ق ت� �ة� ي ز �و ممي دة� أ� �رب� درة� ف �لك\ ق من� �ام ي ط' لق� ت هدف ح سن� �ة� ت ز �ة ألمي ن# هد Fأ

Customer value و �Tت م للز �ي �لق� ف لال ح ن#من# حن# �Tي ر ل من# أل̈اخ ص ف كل أ� مها ت�ش� �دي ق� �و ي ها أ� مرأر وعرض است� �ها ب �ة� علن ظ' مكن# ألمجاف �دأمه� ي وءة� ومسن� ه� كق ق� �Tي طر �ت

competitive priorities9 #نحول ألى عدد م �و ي م أ� �ي�زج 6ن# ن مكن# أ� �ه� ي �سي اف ن ات� ألاعمال ألت6 ي� ج� �ت �ن# أسي�زأي Fأات� �ها ألعملن �دأر ت �ى� ب ه� ألت� ق� �Tي الطر �ز ب �ث و� �ار سي �ن ت� أ ألاح ن# هد Fها وأ ار من �ن ت� ه� ألاح �ي ج� �ت �مكن# لوحدة� ألاعمال ألاسي�زأي �ى� ي ألت�

ح للاهدأف هم ألوأض عكس ألف �ب� أن# ي ج� �ات� ي �ها ألعملن �دأر ت �ى� ب ه� ألت� ق� �Tي ون# ألطر �Tت ودها ألر ق� �ى� ي ات� ألت� �ه� ألعملن �ي ج� �ت �أن# أسي�زأيجدد �ون# وي �Tت ات� ألر �هم حاح مه� لف ظ' ل أدأرة� ألمن ن� �ي�زكه� من# ف ه� مش� �ي ق �اي 'هودأت� وظ ل مج� د �ا ب ص �طلب� أت ن� �مه� وي ظ' ل للمن �له� ألاح �ب� طو

ه� �لي �ن ع س� درأت� ألي� درأت� competitive priorities ألق� �ات� ألى ق �لك\ ألجاح �ل ب �حوب� مه� لت6 ظ' اج# لها ألمن جي� �ى� ي ألت�ه� �سمي �ها ت �طلق� علن �ه� ت �ون مزغ

ن# ألادأء لى� لا� ون# ألدأح �Tت ات� ألر �ه� درأسه� حاح �ي ج� �ت �ة ألاسي�زأي طلب� هد ن� 6ى� ألادأء كما ي ن# ف �سي اف وق� على ألمن ق ق� ألت� �ي حق� �من# ي ض �ما ت �يه� �سي �ي �ها ألرب �ات �ع عملن �مت �عت�مد» على أدأء ج �مه� ي ظ' ألكلى»� للمن

1.2: competitive priorities:

مه� �ت ة� وشلسله� ألق� ي �ه� معت �لكها عملي من� �ب� أن# ي ج� �ه� مهمه� ي �لي �ن ع س� �عاد ت � .competitive priorities10 هى� أي7

�ى ارج� لى� وألج ون# ألدأح �Tت اء ألر ها لارض �ام ت �ن ادرة� على ألق� �كون# ق �ه� وب �لك\ ألعملي �ها ب ف� حق� �ى� ي ألت�To become an industry leader logistics, firms must have highly effective and often innovative internal operational systems.

Competitive priorities denote a strategic emphasis on developing certain manufacturing capabilities that may enhance a plant’s position in the marketplace. Such emphasis may guide decisions regarding the production process, capacity, technology, planning,and control (Kenneth, 2002)

Alireza(2011) show that:Competitive priorities are specifically taken into consideration as strategic capabilities which are considered as “the dimensions that a firm’s production system must possess to support the demands of the markets that the firm wishes to compete in”

�زيما ث �ت 11:فThere is general agreement that the effectiveness of an operations strategy is determined by the degree of consistency between emphasized competitive priorities and corresponding decisions regarding operational structure and infrastructure (Kenneth, 2002)

The indicators for successful operational performance are delivery performance, cost reduction, and customer satisfaction.1 Delivery Performance: Delivery speed refers to ability to reduce the time between order taking and customer delivery to as close to zero as possible. Logistics firms must be able to respond to the needs and wants of customers as demanded. Deliveryreliability is another important function for the firms to perform to exactly meet quoted or anticipated delivery dates and quantities..2 Cost Reductions: According to Clark (1989), cost reduction measures the success level of the development team to reduce product cost. A low product cost signifies efficiency in the innovative process of the product, in handling uncertainty, and

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in efficient problem solving by the cross functional team members..3 Customer Satisfactions: Quality is something indicates the effective service of firms to retain their customers. The qualityof service draws and maintains customers. It focuses on delivery dependability, responsiveness, order flexibility and delivery flexibility.According to Tersine and Hummingbird (1995), they addressed time-based competition as the ability to reduce lead times relative tointroducing new products to market, manufacturing an existing product, and delivering the product to the customer.

Dimensions of Competitive Priority

12 مه� ظ' ه� للمن �كTي�ز أهمي لك\ ألا� �ار ب ي� ج �لك\ على ألادأرة� أن# ي ه� لد �ات� مهمه� وحاسمه� لكل عملي �ن ق� ع ألاست� �مت �سب� ج �ن# لي ة� أ� الملاخظ' �در ب ج� �يار له �لالها ما أش م من# ح ض �ه� ت �سي �ي �ه� رب �سي اف ن 6ات� ي �ن ق� مس أست� اك\ ج سى� وهن اف ن اج ألت6 ج� êتق� أل �ي حق� صودة� لت6 :ألمق�

Rondeau et al. (2000) referring to Koufteros (1995) define the following manufacturing-related competitive capabilities:1. Competitive Pricing: firm is capable of competing based on low prices.2. Premium Pricing: firm can command superior prices.3. Value to Customer Quality: manufacturing enterprise is capable of offering product quality and performance that would fulfill customer’s needs.4. Dependable Delivery: manufacturing enterprise is capable of meeting delivery requirements.5. Product Innovation: manufacturing enterprise is capable of introducing new products and features in the market place.

اة ه أدب� �ز ألي �ي ش� أ ما شي ه� وهد �سي اف ن ات� ألت6 �ن ق� س للاست� ي� ب¡� ا ن# مق� �ي احي� ح ألن� 13أوضCompetitive Priority ScalesCost:Reduce inventory, Increase capacity utilization, Reduce production costs, Increase labor, and productivityQuality:Provide high-performance products, Offer consistent, reliable quality, Improve conformance to design specificationsDelivery:Provide fast deliveries, Meet delivery promises, Reduce production lead time

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Flexibility:Make rapid design changes, Adjust capacity quickly, Make rapid volume changes,Offer a large number of product features, Offer a large degree ofproduct variety,Adjust product mix (Kenneth, 2002)

1.1.3: the Source of Competitive weapon:

ه� �سي اف ن 6احات� ي ج� ق� ي �ي حق� لاك\ موأرد ومصادر لت6 طلب� أمن� ن� �ه� ي �سي اف ن ات� ألت6 �ن ق� لاك\ ألاست� ه� وأمن� �سي اف ن ة� ألت6 ز �ق� ألمي �ي حق� �أن# يSince the awareness of the internal as well as the external environment has been greatly emphasized, an organization should seek comprehensive and updated information related to markets, customers, and competitors to be able to create and sustain its competitive advantage. (Abdullah, 2011)Penrose (1959) developed the concept of competitiveness based on competences; They propose the firm as a collection of individual unique resources. This collection is increasingly knowledge-based.The resource-based view focuses on resources that are permanentlytied to a firm. The combination of resources over time allows forthe evolution of specific capabilities which optimally lead to competitive advantage. (Omerzel, 2011)

ن# �ي احي� ار له أحد ألن� �أ ما أش ث�زة� وهد د من# ألعوأمل ألمو� �ار لعدب� ن� ن# ألاعت� �عي �د ي مه� أح ظ' ه� على ألمن �سي اف ن وص ألت6 د ح عنIt has been widely emphasized that there are many factors that can prevent competitors from being able to achieve the same competitive advantage level of a firm. These factors such as internal organizational strategies, human competencies, regulations, access to useful information sources. Hence, an organization can develop its competencies and establish the matchbetween these internal capabilities and the external environment to create its sustainable competitive advantage. (Abdullah, 2011)

ه ة� ألموأرد ألى أن ز �ه� مي �ñن ر ط' ها ت ه� ومن �سي اف ن ق� ألت6 �ي ق� ح �ل ي ح سن� وض �ى� ت ات� ألت� �ب¡ ر ط' ات� عن# ألن �اب اولب� كن� ن 6يAccording to resource-advantage theory, firms also seek to use their resources gain a competitive advantage in the market, whichwill ultimately lead to superior financial performance. Resource-advantage theory suggests that a comparative advantage in

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resources results in a competitive advantage in the marketplace (Hunt and Morgan, 1996). Resources include a firm’s assets, processes, information, and knowledge that help a firm improves efficiency and effectiveness (sakchutchawan, 2011).

ه لى أن Fار أ �س�ر ت جب� ̈أخ �ى� ي :وفAccording to the resource based view of the firm, it is confirmedthat the competitiveness and enhanced performance of a firm is dependent on its valuable, rare, imperfectly imitable, and no substitutable resources. Traditionally, the firm’s resources can be categorized into tangible and intangible. While tangible resources are the physical objects such as capital, locations, building, warehouses, and other facilities, intangibles resourcescomprises knowledge, skills, efficient practices and processes, and intellectual capital like entrepreneurial orientation and other assets that cannot be placed in the balance sheet (Abdullah, 2011)

Porter (1990) authored the national competitive advantage theory,according to which the competitive advantages are influenced by human resources, knowledge, natural resources, infrastructure, and capital resources. Porter’s (1990) ‘diamond of national competitiveness’ model postulates that success in international competition in a given industry depends on the relative strength of an economy in a set of business-related features or ‘drivers’ of competitiveness, namely ‘factor conditions;’ ‘demand conditions;’ ‘related and supporting industries,’ and ‘firm strategy, structure, and rivalry.’ (Omerzel, 2011)

To be competitive a firm should be able to learn quickly and apply the acquired knowledge faster than the competitors. A company should improve its existing skills as well as master new ones continually. A company’s infrastructure should be organized in such a manner that the adequate technological equipment, internet and intranet, knowledge banks, libraries, continuous training, and meetings stimulate efficient team work, creativity,positive attitudes, and self-confidence; and favorable work

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environments should be organized with a view to gaining or maintaining a competitive advantage. To understand why certain competitive strategies are more effective than others, one must consider the distribution of resources in competing firms. ( Omerzel,2011)

ها ه� ومن �سي اف ن ة� ألت6 ز �ق� ألمي �ي حق� هم ألمصادر لت6 له� لا� زت� أمن� ض ل ت �صن ق د من# ألت� �ب¡ :ولمرCapabilities, Knowledge and culture

Capabilities as the Source of Competitive weapon:Capabilities are a company’s skills at coordinating its resourcesand putting them to productive use. Capabilities include values, people, and processes (Omerzel, 2011)

The organizational capabilities are the skilled, talented, experienced humans, information driven and specific processes that can be fully utilized to produce high quality and innovativeoutcomes that exceed the customers’ expectations. Moreover, the organizational capabilities increase the value of the available resources and help in coordination the effective use of these resources. It has been strongly emphasized that organizations should not only building their capabilities to create the competitive advantage, but also should ensure that this competitive advantage is sustainable and redeveloped over the time. This means that the process of creating the competitive advantage should be dynamic so that the organization can survive and grow in the dynamic and hypercompetitive. (Abdullah, 2011)To achieve the highest advantages of these unique resources, RBV stresses on the match between the organizational capabilities andthe available opportunities. This explains the failure outcomes of the blind imitation of strategies adopted by successful organizations where these strategies might not be in good match with the available resources of the imitator companies. (Abdullah, 2011)

Knowledge as the Source of Competitive weapon:Knowledge is the most important and critical for competitive advantage because it is the most difficult to imitate. A firm is

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represented by a series of different resources. Knowledge, as oneof the resources, is an important element for company performance.Moreover, knowledge, as a part of human capital, is considered tobe the most important factor for selecting and managing crucial resources to implement the desired strategy to achieve performance. Managers should be aware that the unique and relevant knowledge is usually linked to employees. This is why the firm is extremely vulnerable to the degree that these employees are inclined to move to another company. Employees are transferable assets, and the organizations have to do their best to retain the employees with high knowledge capabilities. Knowledge capital Knowledge capital can be acquired (through education, training, etc.) and preserved (through lifelong learning and continuing education).

When defining knowledge as capital, it is reasonable to emphasizethe investment aspect of knowledge, since investments increase the existing pool of knowledge and create sources of future income. Human capital is a general term that refers to all of theresources that individuals directly contribute to an organization: physical, knowledge, social, and reputation. Human capital resources help individuals contribute to gaining and sustaining a competitive advantage. During the industrial age, human capital was valued because of physical resources such as strength, endurance, and dexterity – these were the aspects of human capital that were most likely to lead to competitive advantages. But as new machinery and technology were introduced, these characteristics became less important. In the current economic landscape, human capital is more likely to be valued forintellect, social skills, and reputation. The understanding of the role of employees is not a new phenomenon.

Culture as the Source of Competitive weapon: In line with the resource-based view of the firm, organizational culture is deemed to be a unique and inimitable capability that contributes to the competitive advantage creation of an organization.

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The critical role of the Organizational Culture (OC) as a factor of competitive advantage of an organization stems from the uniqueness of the culture that makes it inimitable and rare and from its dynamic characteristic that ensure its sustainability.Moreover, it has been indicated that the organizational cultural originated capabilities that haveSocial complexity are valuable and rare and thus a source of a sustainable competitive advantage. In addition to that, Organizational Culture (OC) can change many organizational processes related to problem solving, social relations, and many other work related variables. (Abdullah, 2011)

ن# �ي احي� ه أحد ألن� ي� ز ألى ما كت� �ي ش� لاصه� ت وكجGlobalization, technical evolution, and deregulation are changingthe competitive structure of markets in such a way that the effectiveness of traditional sources of firms’ competitive advantage is often debilitated. Competitive advantages based on physical, financial, or even technological assets are less and less sustainable since these assets are more easily transmittable. This is the reason why firms need to concentrate on the development of difficult imitable capabilities. Such capabilities relate to employees of the firm. They develop and apply their abilities, knowledge and skills, organized and coordinated in ways which can be also distinctive. Globalization,technical evolution, and deregulation are changing the competitive structure of markets in such a way that the effectiveness of traditional sources of firms’ competitive advantage is often debilitated. Competitive advantages based on physical, financial, or even technological assets are less and less sustainable since these assets are more easily transmittable. This is the reason why firms need to concentrate on the development of difficult imitable capabilities. Such capabilities relate to employees of the firm. They develop and apply their abilities, knowledge and skills, organized and coordinated in ways which can be also distinctive. (Omerzel, 2011)

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د �دب� ج� �زي وي ش� ى� ألرأس ألمال ألي� ت�مار ف ه� وألاشت6 م على ألمعرف ائ�� �مات� ألاعمال ق ظ' د لادأرة� من �دب� �مط ح طلب� على ي ن� �ه� ي �سي اف ن ق� ألت6 �ي حق� �ية� ز �ق� ألمي �ي حق� �ي�زأت� وي ع ه� ألت� عمل على موأكي� �ى� ي مات� ألت� ظ' مط ألمن جب� عن# ي وغ ألت� أ ألموض ى� هد ه� ف �ان ى� للكن� ن� أ ما دعا ز وهد �ي ي� ع ه� ألت� لموأكي�

جب� ى� من# ألت� ن� ا ء ألن� ى� ألج�ر ز له ف �ي س� أ ما شا� د وهد �دب� ج� ز ألت6 ه� عي� �سي اف ن ألت61.2: renewal organiztion:

1. 2.1: The defining of Renewal:

Research that refers to “strategic renewal" frequently uses the term to motivate examples of strategic change more generally, with most examples highlighting the process of change. (Rajshree,2009)

the term renewal has come to be identified with evolutionary models strategic change. These models depict renewal as an iterative process of belief, action, and learning, with the purpose of aligning the organization strategy with changing environmental circumstances. (Peter j, 2000)

define the verb “renew” as “to make like new” Synonyms include “to refresh” by storing strength or animation or “to replace” that which is damaged, decayed, old, or worn out. (Rajshree, 2009)

Dictionaries also make clear that the verb “renew” is distinct from the verb “change.” In its broadest definition, the verb “change” means “to make or become different” .Change can include refreshment or replacement, but need not. For example, change might refer to extensions, additions, or deletions without any associated renewal. Thus, renewal is one type of change. (Rajshree, 2009)

Strategic renewal includes the process, content, and outcome of refreshment or replacement of attributes of an organization that

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have the potential to substantially affect its long-term prospects. (Rajshree, 2009)

Organizational renewal is a capability of an organization as a whole rather than a sum of the skills of its individual members. Organizational renewal capability is embedded in the collective knowledge and shared organizing principles of the firm, and understanding it requires recognizing the special qualities of knowledge as opposed to other resources: its fundamentally intersubjective and activity-related nature. Since knowledge efficiency requires specialization(Poyhonen,2004)

1. 2.2: Difference between Renewal and Reform

Difference between School Renewal and School Reform

School Renewal: Is a process – general sense of direction, Not specifically time related, About personal growth, Ecological and serendipitous, Values the individual, Learns from failure, Values complexity, Ethically driven, Continuous,critical reflection, A spiritual component, Personal and schoolgrowth.

School Reform Is a program with specific outcomes, Has published, short term timelines Organizational development , Planned roll-out, Values the system, avoids failure, avoids complexity, Politically driven, Accountability and evaluation, Managerial goals, episodic improvement.(MacNeill,2003)

Difference between Strategic renewal and corporate venturing

Strategic renewal is seen as a top-down process whereas corporateventuring is seen as a bottom-up process. Consequently, managers who initiate an entrepreneurial initiative are more likely to view its prospects from a reference point of loss avoidance than gain enhancement and therefore should be willing to accept more

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risk than other managers. Entrepreneurs are also more likely to perceive lower risk in a given initiative. Behavioral and performance implications for organizations are suggested.(James j,)

1. 2.3: the perspective of Renewal:

Organizational renewal is organized into three main:

Perspectives: knowledge management perspective, strategic management perspective and intellectual capital perspective. The main contribution of the knowledge management perspective is the consideration of the inherently social and activity-based nature of knowledge in organizations and the organizational processes associated with its application and development. Within this perspective, organizational renewal capability is understood as flexible knowledge integration. The strategic management perspective, on the other hand, approaches knowledge in organizations from the standpoint of its implications for the creation of competitive advantage. In this approach, organizational renewal is framed as the dynamic capability of firms. The intellectual capital perspective is focused on exploring how intangible assets can be measured, reported and communicated. From this vantage point, renewal capability is comprehended as the dynamic dimension of intellectual capital. Each of the perspectives significantly contributes to the understanding of organizational renewal capability, and a coherent picture of this capability benefits from integrating elements from all of them. (Poyhonen,2004)

Comparison of Theories on Renewal Ability of Organizations.

ار �Poyhonen,2004 أش17

�الى دول ألن� الج� �صها ب لخ د ب �دب� ج� ات� ألت6 �ب¡ ر ط' :ألى تRenewal ability conceived as:

Key assumption: Main focus:

Type of renewal considered:

Theoreticalroots:

1. Knowledge conversion capability:

Renewal is achieved by knowledge conversion between tacit and explicit knowledge, which takes place in various bars

Process ofknowledge conversion

Incremental development

Polaner's idea of tacit and Explicit dimensions of knowledge; organizational theory

2. Continuous replenishing of core capabilities

Constant updating ofcore capabilities via knowledge building activities keeps organizations renewing

Core capabilities and thesupportingknowledge-building activities

Type of renewal considered: Radical innovation

Organizational theory,especially technology management and new product development

3. Mindfulnessof the organizationalsystem

Mindful operational mode enhances organizational capability to repairand replenish system

Collectiveenactment of organizational

Maintenance

Cognitive social psychology

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functioning and contain change

processes supportingmindfulness

4. Strategic capability forcontaining andcreating change

Semi coherent strategic direction and its implementation by means of semi structures, links intime and time pacing

Strategy formation and implementation

Incremental development

Strategy, complexity and Evolutionary theory

5. Systemic power of the organization to form knowledge Environments which support its strategy

Dynamics of the organizational system create knowledge environments within the organization, each of which leads to different type ofrenewal

The capabilityof the organization to function as a coherent knowledge system according to its strategy

Maintenance, Incremental development and radical

Innovation

Systems theory

6. Continuous innovation

Continuous innovation requires synergistic combination of operational effectiveness, i.e. exploitation and

Incremental Development and radical innovation

Industrial process management

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strategic flexibility, i.e. exploration

7. Understanding and supportingthe autopoietic nature of the organization

The sensory functionof organizations enables creation of new knoweldge, whilethe memory function enables maintenance of existing knowledge; both are needed for continuous self-production of the organization

Antipoeticnature of organizations

Maintenance

and radical innovation

Theory of autopoieticsystems

8. Dynamic capability

The organizational capability to leverage, develop and change its competences is the key to success in rapidly changing environments

Firm-specific routines and capabilities

Incremental Development and radical innovation

Resource based and capability-based viewsof the firm

Ability to manage the organizationalrenewal cycle

Crisis, value-based leadership and creative networking are necessary for radical organizational renewal

Radical change

Renewal cycle

Organization theory, ecology

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1. 2.4: the dimensions of renewal:

Multiple dimensions of change including those with regard to competition, firm resources and capabilities, organizational structure, and cognition, as well as routines and recesses for decision making and implementation. (Rajshree, 2009)

1. 2.5: the characteristics of renewal

six characteristics that create a learning-oriented atmosphere which enables continuous renewal: enthusiasm for knowledge; driveto stay ahead; tight coupling of complementary skill sets; iteration in activities; higher-order learning; and leaders who listen and learn.(Poyhonen,)

strategic renewal has several important characteristics. First, strategic renewal relates to that which has the potential to substantially affect the long-term prospects of a company. Second, strategic renewal encompasses the process, content, and outcome of renewal. Third, strategic renewal involves the refreshment or replacement of attributes of an organization. Fourth, such refreshment or replacement aims to provide a foundation for future growth or development.(1) the importance oforganizational cognition and shared assumptions that manifest themselves in the form of internal identity and common ground, in addition to top management cognition. Yet other studies point to the importance of knowledge acquisition through corporate venture capital investing and dynamic capabilities for the selection and integration of acquisitions, R&D and new product development, and top management opportunity recognition (Rajshree,2009)

1. 2.6: the processes of Renewal:

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Four associated (micro) processes—intuiting, interpreting, integrating, and institutionalizing—serve to link three levels ofanalysis and define learning within organizations.

Intuiting and interpreting occur at the individual level; interpreting and integrating happen at the group level; and integrating and institutionalizing take place at the organizational level. The use of verb forms conveys both the cognitive and behavioral perspectives of learning processes.

Intuiting is the preconscious recognition of the pattern and/or possibilities inherent in a personal stream of experience. This process can affect the intuitive individual’s behavior, but it only affects others as they attempt to (inter)act with that individual. Interpreting is the explaining of an insight, or idea to one’s self and to others. This process goes from the preverbal tothe verbal and requires the development of language.

Integrating is the process of developing shared understanding amongst individuals and the taking of coordinated action through mutual adjustment. Dialogue and joint action are crucial to the development of shared understanding. This process will initially be ad hoc and informal, but if the coordinated action taking is recurring and significant it will be institutionalized.

Institutionalizing is the process of ensuring that reutilized actions occur. Tasks are defined, actions specified and organizational mechanisms put in place to ensure that certain actions occur. Institutionalizing is the process of embedding learning that has occurred by individuals and groups into the institutions of the organization including systems, structures, procedures, and strategy.(Crossan,2003)

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Three sub processes for strategic renewal that can be differentiated according to their out comes: competence deployment, competence modification, and competence definition.

Competence deployment is the synoptic process processes where in managers deploy recourses to venture into new product market arenas or to reinforce an existing product market position.

competence modification is the process where in managers recognize the need for change, question the organization s existing strategy and or competencies, and encourage emergent , adaptive behavior.

Competence definition is the sub processes where in managers encourage expertrimentation with new skills and exploration of new market opportunities. (Peter j, 2000)

1.2.7: the types of strategic renewal:

renewal as an iterative process of belief, action, and learning, with the purpose of aligning the organization strategy with changing environmental circumstances. (Peter j, 2000)

Two basic types of strategic renewal: (i) discontinuous strategictransformations and (ii) incremental renewal.

Major changes, such as in technology or customer demand, may cause a company to fundamentally alter one or more aspects of itsstrategy and organization. A firm also may attempt a strategic transformation because its primary market has matured or is declining, causing the firm to seek new avenues for growth. Thesetypes of transformations almost by definition involve replacing important parts of a company and its strategy, and affect the long-term prospects of the firm. Thus, such transformations entail strategic renewal. Major transformations involve not only large amounts of change, but also change along multiple

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dimensions, such as with regard to the business model, technological base, organizational structure, resources and capabilities, and organizational mindset. Incremental strategic renewal, if undertaken proactively, may enable firms to cope withchanges in the external environment as they take shape, and thereby reduce the need for a much larger and more difficult transformation later on. Incremental renewal can include experimentation outside of the core business, such as through corporate venturing, or it can include incremental alterations tothe core businesses of the company, including flagship products. not all incremental renewal occurs in response to a previous change in the external environment. Firms conduct many activitieson a regular basis that may facilitate renewal, not the least of which is research and development (R&D), with accompanying opportunities for cumulative innovation. (Rajshree, 2009)

1.2.8: Process and Content Aspects of Strategic Renewal

Process and Content Aspects of Strategic Renewal

1. Discontinuous transformations:- Process: Organizational identity, Effect of cognition on entry into new industry, Dual focus on cost reduction and customer responsiveness, Formal and informal organizational structure Entrepreneurial dynamic capabilities of top management

- Content: Product market shift, Discontinuous technological change and entry, into new industry

2. Incremental renewal- Process: Internal social context in acquisitions to fill capability gaps, Organizational imitation and contagion in adoption of dominant designs, Micro processes for adaptation of new product development capabilities Effect of shared cognition on post acquisition integration, Entrepreneurial dynamic capabilities of top management

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Renewal organization

Competitive weapon

- Content: Acquisitions to obtain new technologies, Acquisitions to obtain new capabilities Impact on acquisitions of corporate venture capital investing, Changing dominant designs

Development of new products ,R&D investment. (Rajshree, 2009)

1. 2.9: the implications of Renewal:

Implications those are important from a theoretical and practicalperspective. First, top managers will possess biases when evaluating the prospects for strategic renewal and corporate venturing. Second, the bias in evaluation is perhaps more troubling with respect to strategic renewal efforts. Since those responsible for implementing the new strategy and/or structure are likely to possess different reference points and make different assessments of the probabilities of success, their commitments to the initiative is expected to be Lowe. (James j,)

3. Model of study:The researcher builds the model from three items (Knowledge, intellecal capital, leadership

As capability, renewal organization as environment, investment operation condition

Study's Hypotheses :

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In order to accomplish the objectives of this study, researcher suggest the following hypotheses: In the light of what has been revised from the previous studies relevant with variables of the study, and to choose the model for the study, and to achieve its goals, the researcher developed the following hypotheses:

renewal strategy as capability (Knowledge, intellecal capital, leadership ) and achieve competitive weapon.

Conclusion:

Competitiveness and success cannot be claimed as rights. They areearned through continually matching products and services to whatthe customer will buy. They are earned through continually responding to changes, in markets, technology, social pressures and legislation. Successful enterprises evolve - not through random mutation - but through purposeful strategies to respond tochange. (Cornelius)

The only confident prediction that can be made about change is that it will accelerate. That is why renewal is not about responding to changes, but having the capabilities and processes to respond tom unpredictable change. Renewal organization is about establishing the processes that allow an enterprise to master change so as to be able to offer the products that customers will value.

The main purpose of this study is to measure the links between the renewal organiztion as capability (Knowledge, intellecal capital, leadership ) and achieve competitive weapon. More specifically, the objectives of this study are as follows:

- to recognize the concept of a renewal strategy, and competitive .

- to measure the links between the renewal strategy, and competitive advantage,prioritites .

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- To propose some recommendations and suggestions and set a base for more detailed future studies regarding the renewal strategy, and competitive advantage, and success of the change in competitive environment .

It is possible for firms to successfully substitute firm resources in the short term, but it is unlikely to be the same for knowledge resources. This is the reason why knowledge meets the criteria for being a source of sustainable competitive advantage. Knowledge adds value to the firm and it cannot be imitated. Certain competitive strategies are more effective than others, it is important to distribute resources effectively. A firm may possess more or less different resources, but only thoseresources that are rare and difficult to imitate provide a sustainable competitive advantage. We consider that the source of competitive advantages depends onknowledge, as also that knowledge is a necessary, but not a sufficient condition. Future research must be conducted in order to develop more deeply the relationship between different capabilities, especially knowledge, and different measures of competitiveness. (Omerzel, 2011)

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