Marketplace Champion

Managing Performance

 

Sources of Competitive Advantage  Case Studies

Trust as a source of Competitive Advantage Download PowerPoint presentation, pdf e-book

 

Source: The Trusted General Manager and Business Unit Performance: Empirical Evidence of a Competitive Advantage, J.H.Davis, F.D.Schoorman, & H.H.Tan

  

 

Trust both between individuals and organizations is at the core of and delivers significant benefits in today's complex and rapidly changing knowledge economy.

Winning Team: 7 Elements Download PowerPoint presentation, pdf e-book

"Trust elevates levels of commitment and sustains effort and performance without the need for management controls and close monitoring," says Paul Taffinder, the author of the The Leadership Crash Course.

Trustworthy firms have also competitive advantage when it comes to forming and using cooperative strategies.

 

   

  Trust-based working relationships are an important source of your sustainable competitive advantage because trust is valuable, rare, imperfectly imitable, and often nonsubstitutable.

 

TRUST IS

Valuable
because it allows your firm to better serve your customers and to improve its performance as a result.

Rare
because few rivals have the relationship between managers and employees that trust denotes.  >>>

Costly to imitate
because trust is causally ambiguous and socially complex. As such, it is difficult for your competitors to understand what trust is and how to establish it in their firms.

Nonsubstitutable
b
ecause trust is a capability that is difficult for your competitors to observe, and capabilities that cannot be observed at least somewhat easily are hard to imitate >>>

   

 

 

Sources of Competitive Advantage

Build Trust to Improve Performance    8 Conditions for Building Trust Between Partner Organizations    Passionate Team    Tacit Knowledge