TITLE:
Gaining Competitive Edge with a Comprehension of Complex System of Self-Organized Startup Businesses
AUTHORS:
Ann Dodor, Isaac Gumah Akolgo
KEYWORDS:
Competitive Edge, Complex Adaptive System, Self-Organised Startups, RBV
JOURNAL NAME:
Open Journal of Business and Management,
Vol.10 No.5,
September
20,
2022
ABSTRACT: Design/Methodology/Approach: System dynamics with the use of Vensim software was used to depict the
various variables used in the study, and Structural Equation Modelling (SEM)
assisted in analyzing the data with a sample size of 350 responses, depicting
that all the measurement models and constructs used fit the data well. Purpose: The study aimed at investigating how self-organised startups can
differentiate themselves by understanding the theory of complex adaptive system
for a competitive edge. This study builds on complexity theory which is a
system grounded on relationships, emergence and patterns. The major problem
that has led to this research is the inability of entrepreneurs to gain
competitive edge over their competitors leading to high startup chaos and
failures. Startups that are seen as systems and managed well can gain
competitive edge, compared to their rival startups which are not recognised as
a set of systems to strategically organise and reorder regularly. Findings: The
three exogenous variables, namely opportunities, resources and experience which
were hypothesised all came up as having positive and significant relationships
with competitive edge which was the mediating variable, while the mediating
variable was also statistically significant to the dependent variable—startup business. Research Limitations/ Implications: The study was conducted in a cross-sectional base and could not capture
the trend in the actions of the entrepreneurs used in the research in terms of
their competitive edge. In the future, researchers can expand their focus by
conducting longitudinal studies in this area to analyze how competitive edge
influences self-organised startups over time. Attention was not paid to the
competitive edge of the entrepreneurs in relation to specific organising
activities. In this regard, studies that seek to examine how competitive edge
influences specific organising activities of these entrepreneurs in the future
will further enhance the understanding of self-organising entrepreneur
startups. Practical Implications: The study will help identify a
pool of potential startup innovators and provide special support to this group
to help overcome the particular constraints they encounter in terms of
management skills development, growth, finance, finding partners in external
markets, linking into an innovation support infrastructure and accessing
appropriate premises. Regulators, through this study, will streamline policies
relating to entrepreneurship for an improved economy. It will facilitate
specialisation, high profitability, economies of scale, human and financial synergetic
environment and innovative performance.