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Introduction
In an open system environment, to be competitive is one of primary goals of any organization. A company gains competitiveness if it has the ability to provide products and services as or more effectively and efficiently than the relevant competitors. As a result a company with a competitive advantage has the ability to outperform its rivals. “It determines the appropriateness of a firm’s activities that can contribute to its performance, such as innovations, a cohesive culture and good implementation” (Porter, 1998). Hence, to be competitive, a firm has to find out important factors or strategies that can make it different and better from its competitors. This paper will discuss two factors that will lead to firms’ competitiveness behavior.
Discussion
In line with resource-based view approach, Offstein and Gnyawali (2006) study the effect of human and social capital assets that a firm possesses against its ability to sustainably compete to get better market share. They specifically study the top level positions such as the Board of Directors (BOD), Chief Executive Officers (CEO) and the management teams (TMT) influence on the competitive intensity of a firm. Competitive intensity is defined as the ability of a firm to undertake variety, strategic competitive actions. It is believed that a competitive intense firms are more likely to secure market benefits compared to their less competitively rivals.
They had defined human capital as the knowledge and skills that exist within the individual. Social capital on the other hand, emphasizes the relationship and linkages of individuals. The basic premise of the study is t ...