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This study investigates the quantitative relationship between knowledge based view (i.e. empowering employees, promoting confidence, coding rules) and sustainability competitive advantage (i.e. market, customer, financial) within the banking industry of Iran. | The effect of knowledge based view on sustainable competitive advantage Accounting 2 2016 67 80 Contents lists available at GrowingScience Accounting homepage www.GrowingScience.com ac ac.html The effect of knowledge based view on sustainable competitive advantage Fatemeh Rezaeea and Mostafa Jafarib a Master student Department of Industrial Engineering Iran University of Science and Technology Tehran Iran b Faculty member Department of Industrial Engineering Iran University of Science and Technology Tehran Iran CHRONICLE ABSTRACT Article history This study investigates the quantitative relationship between knowledge based view i.e. Received July 5 2015 empowering employees promoting confidence coding rules and sustainability competitive Received in revised format advantage i.e. market customer financial within the banking industry of Iran. A valid August 16 2015 research instrument was utilized to conduct a survey of 150 top- and middle-level managers Accepted January 10 2016 Available online from Mellat bank of Iran. With a response rate of 81.3 percent 122 questionnaires are returned January 11 2016 the number of valid and usable questionnaires was 101. In order to determine validity of Keywords questionnaire the content validity was used and Cronbach s alpha was used to determine the Knowledge based view reliability of the questionnaire KBV questionnaire 0.886 SCA questionnaire 0.843 . Utilizing Sustainability capability the structural equation modeling and after a series of exploratory and confirmatory factor advantage analyses it was found that KBV had the greatest effect on the market centered SCA while it Structural equation modeling had the least influence on the customer centered. Banking industry 2016 Growing Science Ltd. All rights reserved. 1. Introduction In the present turbulent environment organizations have shifted from contemporary approaches of strategy to the internal resources of the organizations to reach the SCA. Central to the topic of the