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Volume 22 Number 12 1999

Biographical Note

Professor Seyed-Mahmoud
Aghazadeh can be Human Resource Management:
Issues and Challenges in the New
contacted at Production &
Operations Management,
Department of Business
Administration, State

University of New York at
Fredonia, Fredonia, NY
14063, USA

by Seyed-Mahmoud Aghazadeh


It is our intent to research the problems facing Human Resource Management

(HRM) in the coming millennium. The three aspects of HRM issues and chal-
lenges that we will investigate are those of personnel, technology and globalisa-
tion. We feel that the advent of the European Union will have a significant impact
on the future of HRM, particularly in view of the increasingly global marketplace.

HRM will face numerous opportunities and challenges in the coming millen-
nium. How well they cope in an increasingly global market will impact how well
their company does in the marketplace. HR professionals will need to deal with
such diverse issues as building a talent pool, managing diversity programmes, us-
ing technology as a human resource management tool, dealing with employment
law issues and the impact of the EURO. Flexibility, the ability to cope, and knowl-
edge will be required of future human resource managers. To add to the complex-
ity of those issues is the fact that many of the factors are inter-related and affect
different aspects of operational and human resource management.

Personnel Challenges and Issues in the New Millennium

The first aspect that we will examine is that of personnel issues and challenges.
The beliefs of Frederick Taylor, father of scientific management are still valid. It
was his belief that management should assume more responsibility for: matching
employees to the right job, providing the proper training, providing proper work
methods and tools, and establishing legitimate incentives for work to be accom-
plished. These beliefs continue to be valuable components of effective personnel
management. The successful companies or organisations will be those that are
able to attract and retain highly skilled employees. In order to do that, they must be
able to match what the employee wants with what the employer is willing to give.
Human resource directors and executives are coming to the realisation that if you
take care of your people; they will take care of you. Many companies are doing this
by offering innovative and flexible benefits.

Changing employee expectations pose several different challenges for HRM

professionals. In order to retain good employees and keep them happy and produc-
tive, these challenges must be successfully met (Sims R. and S. Sims, 1994). Com-
panies need to first identify what their employees need. Companies with more
than one location should not assume that all employees in all sites have the same
needs. The employees needs may be a reflection of socio-economical or cultural
influences. After needs have been determined, the next goal is to establish a cost-
effective plan to provide for the employee’s needs. The HR professional needs to
be aware that the employees needs are not static, they are indeed ever changing.

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They provide benefits based upon what the best particular fit is for the employee.
One location may offer child-care benefits, while another may offer flexible hours
or working from their home. Organisations need to build a better benefits package.
Companies need to look at their total reward package in order to retain their skilled
workers to be sure that these programmes really add value. They should avoid be-
ing rigid and try to customise benefits to the individual employee.

Yahoo! has begun offering personal finance seminars for its employees
whose stock options have grown tremendously (Yahoo!’s stock is now worth 20
times more than it was in 1996). They are also using parties on Fridays and visits
from Ben & Jerry’s ice cream truck to create positive morale.

The HR department needs to become employee champions. Workers are

constantly being asked to do more with less. Former employment contracts, which
were based on job security and predictable promotions, have been replaced with
faint promises of trust. As a result, relationships with employees become transi-
tional with employees giving their time and not much more. Employees who feel
that they are valuable are willing to share deals, work harder and relate better to

The Sears department store has compiled data that showed a small increase in
employee commitment resulted in a measurable increase in customer commit-
ment and store profitability.

Sears, Roebuck and Company found themselves in a 10-year business down-

turn and knew that they had to change their strategy and culture. In September
1992 Arthur Martinez began heading up the merchandising group. He made many
sweeping changes that in 1993 produced a sales increase of more than 9% and a to-
tal return for shareholders of 56%. In order to ensure that this success would con-
tinue he created a core group of senior executives that became known as the
Phoenix Team. He worked to empower this core group to think and create their
own plan for implementing and sustaining the necessary changes. They devised a
questionnaire that was, and still is, periodically given to employees. By using 10
out of the 70 questions, they have produced a model that shows a 5 point improve-
ment in employees’ attitudes will drive a 1.3 point improvement in customer satis-
faction and this will drive a .5% increase in revenue growth. Applying this model
to 12 months of sales equates to employee satisfaction and customer satisfaction
each increased by nearly 4%. This equates to $200 million in additional revenue
which in turn result is an increase of almost a quarter of a billion dollars in market

They found that two areas of employee satisfaction had the largest effect on
employee loyalty and behaviour toward customers. These areas were their attitude
toward the job and toward the company. Sears provides extensive training to their
new sales associates and has empowered them by giving them greater decision
making authority. They use town hall meetings to seek input and disseminate in-
formation to their employees. They stress that the employees are expected to “sat-
isfy the customer.” Sears was fortunate that the public’s perception was positive
and saw them as being honest.

On January 1, 1995 Sears University in Chicago was established and has

trained more than 40,000 Sears’ managers. They reward the employees by basing

Volume 22 Number 12 1999

all long-term incentives on non-financial as well as financial performance. By

utilising a telephone survey, they are able to obtain feedback from the customers
of their perception of the service that they receive. This is done through the use of
an 800 number. Customers are randomly selected to participate in the survey.
They receive $5.00 towards their next purchase if they agree to answer twenty-
four questions about their shopping experience. Through the coding provided they
are able to identify which associate waited on the customer and thereby provides
information to the individual employee on how the customers perceive them.

The Human Resource Department of an organisation has never been as nec-

essary as it is today. However, this department needs to establish a new role and
agenda. It should also focus on outcomes rather than just on staffing and compen-
sation. It needs to find ways to enrich the organisation’s value to customers, inves-
tors, and employees. Ulrich (1998) has suggested four ways for HR to deliver
organisational excellence:
1. Partner with senior and line managers to move planning from the con-
ference room to the marketplace.
2. In order to deliver efficiency to reduce costs and yet maintain quality,
become an expert in the way work is organised and executed.
3. Become a champion for employees while working to increase em-
ployee contributions, specifically commitment and ability to deliver re-
4. Become an agent of continuous transformation, shaping processes and
a culture that will improve an organisation’s capacity for change.
In most companies, HR is charged with playing “policy police” and regula-
tory “watchdog.” Some more empowered HR departments oversee recruitment,
manage training and development programmes, and design initiatives to increase
workplace diversity. These departments are often not connected with the “real
work” of an organisation.

Operating managers and HR professionals need to form a partnership to re-

think and reconfigure the various functions and become committed to outcomes.
Line managers are answerable to the shareholders to create economic value; the
customers for product or service value; and the employees for creating workplace
value. There are five critical business challenges that need to be faced: Globalisa-
tion, Profitability through growth, Technology, Intellectual Capital, and Change,
change and more change.

Managers are constantly being challenged to balance the demands to think

globally and act locally. People, ideas, products and information must be moved
around the world to meet the local needs. Volatile political situations, global trade
issues, fluctuating exchange rates, and unfamiliar cultures now enter into business
decisions. These managers must become schooled in the ways of their interna-
tional customers. They must enhance their ability to learn to work together to man-
age diversity, complexity, and ambiguity.

Most western companies have already accomplished gains from downsizing,

reengineering, de-layering and consolidation. They must now look at revenue
growth. This will require them to be creative and innovative. They need to encour-

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age shared learning among their employees. Organisations who choose to grow
through mergers, consolidations or joint ventures need necessary skills to com-
bine different work processes and cultures.

This brings us to the challenge of intellectual capital. The most successful or-
ganisations will be the ones who can attract, develop and retain individuals who
have the ability to manage a global organisation that is responsive to customers
and the opportunities being presented by technology. It will be the HR depart-
ment’s responsibility to find, assimilate, develop, compensate and retain these tal-
ented employees.

Companies are having a difficult time finding skilled workers. A net one mil-
lion skilled jobs are expected to be created over the next ten years with no pro-
jected increase in supply. They must come to the realisation that they need to
invest in training their employees. This training will not only improve the quality
of the labour pool but also lead to more commitment on the part of employees.
This commitment will lead to higher productivity. The old contract of job security
and fair wages in exchange for worker loyalty has been broken. Income inequality
has increased the ratio of CEO pay to that of the other average worker has jumped
from 27:1 in 1973 to 48:1 in 1991. The gap continues to grow from 45:1 to 173:1
when restricted stock, stock-options, and other long-term payouts are included.
Companies need to address this issue and work to retain their skilled employees.

Large companies are now competing with small companies for executives.
The smaller companies can offer opportunities for greater impact and wealth. The
average executive today will work in five companies. In the past, executives
worked in one or two companies. It is projected that in ten years the average execu-
tive could work in seven companies. Executive talent has long been an under man-
aged company asset. People have not been made a priority. Superior talent will be
tomorrow’s prime source of competitive advantage. The question needs to be
asked, why would a talented person want to work here?

The current labour force is living longer and is healthier than the last genera-
tion. Adults have been found to be going back to school to improve and update
their skills. It is likely that they will not be retiring in the same way that their par-
ents did. They will probably continue to work, or possibly retire from one career
and enter another. The younger members of the workforce will be competing with
the older members for jobs.

In the global economy, organisations that can quickly put strategy into ac-
tion, manage processes intelligently and efficiently, obtain the most from their
employees, and make change seem effortless.

The HR department must orient and train line management to initiate prac-
tices that will achieve high employee morale. They must be the employee’s voice
in the decisions being made by management. Opportunities need to be presented
for the employee’s personal and professional growth. Resources have to be put in
place to assist the employees to meet the demands being placed upon them. Tools
such as workshops, written reports and employee surveys can be utilised to help
managers understand.

Volume 22 Number 12 1999

In conclusion, in order to achieve long-term economic performance it is cru-

cial that organisations develop their people-based strategies. Downsizing has not
been able to remedy problems with products or services. It has created low em-
ployee morale and motivation due to job loss and fear. Cost cutting such as this is a
one shot deal and represents a single event that cannot be repeated over and over

Good customer service depends on having people who feel good about the
organisation and care about the customers. The people, culture and abilities of an
organisation can create competitive advantage. If your workforce has a high com-
mitment to the organisation, they will work harder, smarter, and save on adminis-
trative overhead that might be present when alienation exists between labour and

Many institutional investors are taking the non-financial performance meas-

ures of a company into consideration when making decisions to buy or sell stock.
These non-financial performance measures include management performance,
customer satisfaction and employee retention. In a report entitled “Measures That
Matter” from Ernst & Young’s Centre for Business Innovation, non-financial
measures were given one-third of the weight when making investment sales deci-
sions. For the decisions to buy, 90% of the respondents stated that at least 20% of a
given decision reflected non-financial performance and greater than one-third
placed the figure at 40-60%. This report was followed up with a simulation that re-
vealed investors’ perceptions of improvements in non-financial performance
could have a major impact on share price. This study implies that companies need
to track non-financial performance and make Wall Street aware that they do so.

Disabilities, diversity and globalisation also play a part in the changing em-
ployee expectations. The federal government has even sanctioned some of these
expectations. The Americans with Disabilities Act mandates that employers and
service providers maintain a certain level of accessibility for people with disabili-
ties. Companies must provide their employees with the necessary equipment to
perform their job in a safe manner. This can range the gamut of keyboard rests to
prevent the aggravation of carpal tunnel syndrome to installing wheelchair ramps
and door openers.

Technology Challenges and Issues in the New Millennium

The use of technology is an important factor in virtually all operation’s decisions.

Opportunities for the innovative use of new or improved technologies exist
throughout operational management. What technological issues and challenges
will companies face in the new millennium? One important issue that companies
must consider is that technology should not be used for the sole purpose of utilis-
ing technology, but to improve the productivity of a company and its return to the
shareholder. How will the use of technology impact the existing organisation?
Some factors that should be considered when implementing technology include:
automated manufacturing processes, personnel software packages, intellectual
property rights, communication, collaboration, Internets and Intranets. In addi-
tion, the Human Resource professional needs to set goals; realistic, reasonable,
challenging, attainable goals. Long, intermediate and short-term aspects should
be considered when making technology decisions.

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The modern office has HR Facts and Figures

tele phones, com put ers with Enterprise-wide workforce management systems are ap-
modems, and copiers. When pealing given that HR professionals regularly face the
these are linked over telephone following issues:
lines or via space satellites and $1500.00 per employee is spent by the average
company to provide basic HR services -
microwave dishes, they make more than twice what the top perform-
up a telecommunication sys- ers spend.
tem. The advent of the tele - 50% or more of HR’s efforts are devoted to
com mu ni ca tion sys tem has lower value, routine activities.
opened up the door to global 325 job titles and six distinct job grades are
marketing. Internets and Intra- regularly tracked by the typical HR or-
nets make it possible for com- ganisation.
pa nies t o h a v e a l m o s t 2.3 record changes are processed by HR an-
instantaneous communication nually for each company employee.
worldwide. They also allow 16 third party suppliers, on average, are
departments with a company or managed by HR.
even companies themselves to
collaborate on a global scale.
Because of accelerated changes in telecommunications and technology, the inno-
vations and culture of the most progressive economies in the world (such as can be
seen with the Japanese, American and European markets) are being absorbed in
part by other nations and cultures (Zajas, 1997).

One big issue that has evolved with the use of technology in the workplace is
that of intellectual property rights. Who is the owner of what is created? Does it re-
main with the employee or does the company who provides the material to pro-
duce it become the owner. This is a particularly thorny issue and various
companies deal with it in a variety of ways. Some companies keep sole ownership
of intellectual property, while others may either relinquish ownership to the
author or negotiate a settlement of some sort.

Why are computers and the use of task specific software packages an issue in
HRM? The primary reason for the existence of any business organisation is to
maximise profits. In order to maximise profits, organisations must not only maxi-
mise revenues but also minimise costs. Increased efficiency is the most productive
way to minimise costs. This applies both to human resource functions as well as to
automated manufacturing processes. If used properly, computers, with their speed
and accuracy, can increase the efficiency of the HRM department, not to mention
the entire company, thereby maximising revenues while minimising costs. Per-
sonnel software packages can be a boon or a bane to the human resource manager;
dependent upon how carefully they are selected. When considering the implemen-
tation of enterprise workforce management, there are five key points that need to
be considered:
* Map human resources processes: Before deciding on the best software
option, companies need to have a clear understanding of the HR hiring
and management processes already in place. HR experts need to exam-
ine streamlining the old processes to ensure that what is being built is a
better solution, not just automation of a broken system.
* Think about the enterprise: Bring executives from other areas of the
company into the discussion and investigate what type of access is

Volume 22 Number 12 1999

needed to more closely integrate business objectives with the HR de-

partment. Have a clear list of the enterprise issues the new solution
needs to address.
* Research vendors carefully: Investigating a software company’s finan-
cial and technical services is critical when buying from a new company.
Since many of the workforce management solution providers are start-
ups, ask about creating a code escrow or another type of contingency
plan to ensure access to the software code in case the company closes its
* Look for flexibility and scalability: What type of relationship does the
vendor have with ERP (enterprise resource planning) vendors? If they
have partners and offer other products that can be used with a variety of
different applications, chances are integration will be easier.
* Discuss future plans with your ERP vendor: Does your ERP vendor
have plans to offer similar types of features in a future update? If not,
determine what type of support it will offer in integrating your bolt on
HR solution to the back-end ERP modules.
Globalisation Challenges and Issues in the New Millennium

The third aspect of HRM issues and challenges in the new millennium is that of
globalisation. Global competition is here to stay. We have seen rapid growth in
emerging world markets. There are new standards of global competitiveness. Effi-
ciency and added value to goods and services are the benefit of this globalisation,
but it does complicate the job of the operations manager. How an operation makes
the transition from domestic to global to achieve its strategy requires careful
analysis. Some of the factors that should be considered include: the European Un-
ion, Positioning Strategies, Global Benchmarking, Competition, Cultural Impact
and Economic Impact.

As Jones (1998) explains in his book, the following points provide a prelimi-
nary perspective of the European Union. “It is unique, it is unfinished, it has been
an exercise in partial integration, its development has been very uneven, it has
been an elite project, it involves the intertwining of political and economic objec-
tives, it is a product of many influences, its central concepts are ‘fuzzy’, it involves
the tension between ‘intergovernmentalist’ and ‘supranational’ influences, and fi-
nally, it is the world’s most advanced project in regional integration.” In spite of
the nebulous condition of what the European Union is and where it is going, it has
had a significant impact upon world trade. There are many reasons why a domestic
business operation will decide to change to some form of International operation.
These reasons range from the tangible to the intangible.

Economic Impact - Beyond the questions of political and economic stability,

the benefits to the United States of a successful Euro could be considerable. By re-
placing the French franc, the German mark and nine other national currencies, the
programme should make it easier and less expensive for American companies to
sell their products and service. Multinational American companies are already
among the largest in Europe, and many smaller American exporters are increas-
ingly looking to Europe (Stevenson, 1999). One important role for HR profession-
als in a multinational company is to be the purveyor of current and correct

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information. Many employees are concerned about how the Euro would affect the
way that they are paid and the benefits that they will receive. Employees are also
concerned how the Euro will impact on their company and the business that they
do. As companies speculate and react to changes in the European marketplace in
the years ahead, opportunities to introduce major changes in HR strategy will arise
(Roberts, 1999). It will be vital for the HR professional to be aware of these
changes and to use them to their best advantage.

Why are global operations important? There are a number of reasons why a
company would consider expanding their area of operation. Companies can real-
ise a reduction of costs, particularly those costs incurred by labour, taxes and tar-
iffs. They can also realise an improved supply chain along with a reduction of
risks. These reduced costs, along with the improved supply chain would permit
the organisation to learn how to improve operations and provide better goods and
services. Finally, multinational expansion would make it possible not only to at-
tract new markets, but also to attract and retain global talent as well. Globalisation
is also having a big impact on supply-chain management, human resource issues,
quality, positioning, location and process strategies. It is the Human Resource
professionals’ job to be able to supply the operational side of the business with em-
ployees capable of performing the requisite tasks involved in capacity planning,
location planning, operations scheduling, facilities and layout design.

In the past, the efforts of many companies to deal with a diverse employee
population were mandated largely by legal pressures or moral concerns in regards
to fairness. These issues of workforce diversity, although complex and compli-
cated now will become more of an issue for those companies operating on a global
scale. Successful organisations will react to diversity as the important business is-
sue it is by implementing proactive, strategic human resources planning. Short-
term strategies designed to circumvent the situation will keep an organisation
from effectively positioning itself in tomorrow’s world of cultural, gender, and
lifestyle diversity (Sims, R. and S. Sims, 1994). Yet another aspect of diversity
awareness is what a particular culture deems acceptable. Ethical considerations
such as the attitude towards employee theft and bribery can have significant im-
pact on the operations of a company. Companies must be aware of potential prob-
lems or situations and have a plan to deal with them.


In conclusion, sweeping changes continue to reshape the workplace. Today’s hu-

man resource professional plays a vital role in helping their organisation remain
competitive in the marketplace. They need to be a knowledgeable, skilled busi-
ness partner. The Human Resource professional in the new millennium will wear
many hats. They must be able to use their sense of commitment, interpersonal
skills and training to help make their company successful. Changes in the work-
place dictate that they cultivate competencies in their own credibility, communi-
cation skills and decision-making skills. The Human Resource professional
should be a strategic partner; administrative expert; employee champion; and
change agent. They should be able to present the vision of their company clearly.
They must have a clear and functional perception of Operational Management

Volume 22 Number 12 1999

What are the questions remaining? There are almost as many as when we
started. How will companies choose to deal with the issues that we have discussed
in the new millennium? There is much information to be assimilated when consid-
ering the problems facing Human Resource professionals in the future. How will
each of these three different yet inter-connected facets affect their choices? While
not having a crystal ball, we can make some generalisations.
* In regards to personnel issues and challenges, we have determined that
the most successful organisations will be the ones who can attract, de-
velop and retain individuals who have the ability to manage a global or-
ganisation that is responsive to customers and the opportunities being
presented by technology.
* The implementation of technology will continue to be a driving force in
the success of companies in the future. Firms that know how to use tech-
nology find it an excellent vehicle for obtaining competitive advantage
(Heizer, J. and B. Render, 1999).
* Globalisation is having and will continue to have a big impact on the ba-
sic issues of operation management; location strategies, supply-chain
management, human resource issues, quality, and process strategies.
We have learned that Human Resource professionals need to take a proactive
role in the success of their company. They need to examine the streamlining of old
processes to ensure that what is being built is a better solution, not just automation
of a broken system. In essence, the Human Resource professional must move from
“the back room” to the “board-room.” They need to emphasise the importance of
continuous progress and managing change through goal setting. Finally, we have
learned that empowered employees have proven to be more productive.

Five Year Survival Rates of Initial Public Offerings

One of the clearest demonstrations of the causal effect of management practices

on performance comes from a study of the five-year survival rate of 136 non-
financial companies that initiated their public offering in the US stock market in
1988. The results are so compelling that prudent investors may want to use these
results in evaluating new companies. The firms studied came from numerous in-
dustries ranging from biotechnology to food service retailing and varied widely in
size, with half employing fewer than 110 people but with 20 percent having 700 or
more employees. Five came from foreign countries. By 1993, some five years
later, eighty-one firms, or 60 percent of the sample were still in existence.

Welbourne and Andrews (1996) developed two scales, along with other fac-
tors, for explaining company survival. The information used in measuring the
firms’ management practices came from their offering prospectuses and thus is
publicly available. The first scale measured the value the firm placed on human re-
sources and was comprised of five items: (1) whether the company’s strategy and
mission statements cited employees as constituting a competitive advantage; (2)
whether the company’s materials mentioned employee training programmes; (3)
whether a company official was charged with responsibility for human resource
management; (4) the degree to which the company used full-time employees
rather than temporary or contract workers; and (5) the company’s self-rating of its
employee relations climate. The second scale measured how the organisation re-

Management Research News

warded people; it was computed, using 10-1 code, by summing whether the com-
pany had stock options for all employees; stock options only for key employees
and management; profit sharing for all employees; profit sharing for key employ-
ees and management; and other group-based incentives, such as gain sharing.

The empirical analysis (Welbourne and Andrews, 1996) demonstrated that

with other factors such as size, industry, and even profits statistically controlled,
both the human resources value scale and the reward scale were significantly re-
lated to the probability of survival. Moreover, the results were substantively im-
portant. The difference in survival probability for firms one standard deviation
above and one standard deviation below the mean (in the upper 16 percent the
lower 16 percent of all firms in the sample) on the human resource value scale was
almost 20 percent. The difference in survival depending on where the firm scored
on the rewards scale was even more dramatic, with a difference in five-year sur-
vival probability of 42 percent between firms in the upper and lower tails of the

Table 1: Principal empirical studies of IT and productivity

Economy Wide or Manufacturing Services
Cross Sector
Osterman (1986) Loveman (1988) Cron and Sobol (1983)
Bailey and Chakrabarti (1988) Weilll (1990) Franke (1987)
Lefebvre and Lefebvre (1988) Morrison and Berndt (1990) Harris and Katz (1989)
Roach (1989) Barua et al. (1991) Roach (1989)
Brooke (1991) Siegel and Griliches (1991) Alpar and Kim (1990)
Brynjolfsson and Hitt (1993) Noyelle (1990)
Parsons et al. (1990)
Strassmann (1990)
Brynjolfsson and Hitt (1993)
Source: Adapted from Brynjolfsson (1993)

Table 2: Information workforce in four developed countries (percentage per year)

Country 1840 1860 1880 1900 1920 1940 1960 1970 1980
United 4.6 5.6 7.9 12.4 19.8 24.4 33.1 36.6 ----
United ---- 5.8 6.5 12.8 17.7 24.9 42.0 46.4 46.6
Australia ---- ---- ---- ---- 11.5 16.3 22.5 27.5 30.2
Germany ---- ---- ---- ---- ---- ---- 24.6 30.7 33.2
Source: Adapted from Kim (1994)

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Table 3: Benefits derived from IT applications in large firms

Key Competitive Dimension Concepts described in Maintenance
Efficiency Use of IT to reduce cost in functional areas (McFarlan 1984)
Internal and interorganisational efficiency (Bakos and Treacy
Comparative efficiency (Bakos 1987)
Productivity (Synnott 1987)
Functionality New products and services (Parsons 1983; McFarlan 1984)
Customer service (Ives and Learmouth 1984)
Differentiation (Porter 1985)
Adding value for customers (Clemons and Kimbrough 1986)
Unique product features (Bakos 1987; Bakos and Treacy 1988)

Unique product features (Bakos 1987; Bakos and Treacy 1988)

Threat Buyer and supplier power (Parson 1983)
Customer and supplier switching costs (Bakos 1987)
Switching costs and search-related costs (Bakos and Treacy
Preemptiveness Preemptive strikes (MacMillan 1983; Clemons 1986)
Positional advantages and timing (Bakos 1987)
First-mover effects (Clemons and Knez 1987)
Synergy Integration with company strategy (King et al. 1986);
Information Week (1987)
Source: Sethi and King (1994)


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