Creating Competitive Advantage - Importance of Ethics, Culture, and Innovation

This article discusses the importance of creating competitive advantage for organizations and how ethics, culture, and innovation play a crucial role in it. It highlights the different factors that contribute to competitive advantage, such as productivity, effectiveness, innovation, quality, and service. The article also emphasizes the role of human resources in creating competitive advantage and how companies can manage their employees effectively to achieve it.

Running head: CREATING COMPETITIVE ADVANTAGE
CREATING COMPETITIVE ADVANTAGE
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1CREATING COMPETITIVE ADVANTAGE
Introduction
Ethical considerations of the organization will be based on the functioning of the
systems of the business as it helps in fostering continuous innovation. The competitive
advantages are thereby used for the purpose of generating a greater value for the organization
and the shareholders with the help of its strengths. Competitive advantage can help the
organization to operate in an efficient manner in the industry as compared to its competitors.
The ethical standpoints of the organization and the manner in which it is characterized by
culture and diversity helps in fostering continuous innovation as per the processes of the
business. The management of people or human resources plays an important role in the ways
by which competitive advantage can be created by the organizations (Albrecht et al., 2015).
1. Creating an ethical organization
An ethical organization can be created through the imposition of different policies that
will be affecting the competitive advantage. The ethical standpoints of the organization will
be based on the management decisions that will be helping to sustain the business. The
different aspects of the growth of the organization are characterized by the competitive
advantage of the same, which helps the organization in acting ethically. The different factors
that characterize the competitive advantage of the organization are:
Productivity – The productivity of an organization is totally dependent on the
people or the human resources which are able to provide the products and
services.
Effectiveness – The management of policies or strategies that have been
creates by the organization are implemented successfully with the help of
proper operations. The proper management of the people who are a part of the

2CREATING COMPETITIVE ADVANTAGE
organization helps in the effective creation of competitive advantage in the
industry (Jones, Harrison &Felps, 2018).
Innovation – The increase of innovation also plays an important part in the
ways by which competitive advantage can be created. The human resources of
the organization are most important in increasing the innovation levels with
the help of their ideas.
Quality – The quality of services and products also play an important role in
the creation of a loyal customer base. The employees or people of the
organization are able to increase the quality of products or services which are
provided to the customers.
Service – The levels of excellence of services also depend on the ways by
which the experience of users can be enhanced. The employees are able to
make the customers feel good based on their purchases. The competitive
advantage can be created with the help of excellent service which is provided
to the customers (Kumar &Pansari, 2016).
2. Leveraging culture and diversity
The relationships, which are created between the employer and the employees plays
an important role in the ways by which the company are able to create competitive advantage
in the industry. The culture and the diversity in the organization play a major role in
maintaining the different levels of change in the systems of the business while operating in
the international markets. The employment based contracts that are created by the companies
are a significant part of the management of people. The main aim behind creation of the
competitive strategy is based on the reduction of employees to invisible units which are able

3CREATING COMPETITIVE ADVANTAGE
to increase the production levels of the organization. The internal resources of the firm are
thereby able to play a major part in the generation of competitive advantage in the industry of
operations. The people or employees are therefore able to contribute a lot to the competitive
advantage of an organization (Meihami&Meihami, 2014).
3. Fostering innovation
The innovative ways which can be created by the people or employees of the
organization helps in differentiating the products from those which are offered by the
competitors (Chahal&Bakshi, 2015). Competitive advantage can be considered as the ways
by which an organization is able to provide the products in a better way as compared to its
competitors. Porter’s generic strategy has proposed two different types of competitive
advantage which are, cost leadership and product based leadership. People play an important
role in the creation of competitive advantage in the industry. People in the organization are
able to develop the products and the intellectual property in the industry. The reputation
which has been developed by the organization is important for the determination of the ways
by which customers are served. People in the modern organizations are therefore a brand of
the firm in the industry. The human resources need to be used by the firms in an effective
manner to provide highest levels of service to the customers (Harrigan, 2017).
Conclusion
The discussion can be concluded by stating that the creation of competitive advantage
is an important part of the ways by which the organization operates in the industry. The
people or human resources are able to contribute towards the proper creation of competitive
advantage in the market. The companies thereby need to manage the employees in such a
manner which can help in proper formation of competitive advantage.

4CREATING COMPETITIVE ADVANTAGE
References
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015).
Employee engagement, human resource management practices and competitive
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Chahal, H., &Bakshi, P. (2015). Examining intellectual capital and competitive advantage
relationship: Role of innovation and organizational learning. International Journal of
Bank Marketing, 33(3), 376-399.
Harrigan, K. R. (2017). Strategic flexibility and competitive advantage. In Oxford Research
Encyclopedia of Business and Management.
Jones, T. M., Harrison, J. S., &Felps, W. (2018). How applying instrumental stakeholder
theory can provide sustainable competitive advantage. Academy of Management
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Kumar, V., &Pansari, A. (2016). Competitive advantage through engagement. Journal of
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Meihami, B., &Meihami, H. (2014). Knowledge Management a way to gain a competitive
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