Technology and innovation were envisaged as the key to competitive advantages and have become a hallmark of business life worldwide. Without technologies and invention practically, no organisation can survive. Thus, this required a clear understanding of how managing innovation and technology influenced business survival. This was much more explicit in an unprecedented and unavoidable competition in the business world environment, and particularly in the local government authorities’ context, it can be of great significance.
The main objective of this article was to provide a framework for assessing the effects of managing competitive advantage through technology and innovation in the context of metropolitan cities. This study also helped to provide an understanding of how technological innovation factors affected the performance of organisation effectiveness.
The methodology used in this study was mainly the secondary data analysis. A complete and thoroughly secondary data analysis process has been utilised as a research design and approach to complete this research work. This section rationalised the selection of the preferred methodology, dealt with data collection and data analysis and covered how data originated from secondary data sources.
One of the fundamental contributions of this investigation has been the development of a pool of valuable data in relation to managing technology and innovation for sustainable competitive advantage in the City Government of Taiwan as public sector. Furthermore and based on the results of reviewing and evaluating the relevant literature and theories taken together, this study has led to the development and proposal of a model, the conceptual framework. This developed conceptual framework reflected the bond between managing competitive advantage techniques through technology and innovation and business performances, which can be applied to different business sectors of the central government. The concept can also be applied to different businesses or to different countries confronted by similar challenges and issues of managing technology and innovation.
This article posited the importance of managing competitive advantage through technology and innovation, particularly as an essential ingredient of competitive advantage for the local government authorities or metropolitans and municipalities.
Owing to technical advancement and transformation in various business sectors, the idea of competitive advantage has evolved over time (Feng et al.
Therefore, an attempt should be made on a consistent basis to understand when and how to deal with issues of asset acquisition, which attracts the competition and creates a competitive advantage. One solution to winning competition by using product creativity is the preparation of new products along with competition from rivals (Fukuda
This knowledge would help public authorities, educational agencies, local governments or metropolitan cities and municipalities in their attempts to recognise the existing state of technology and innovation management for sustainable competitive advantage. In turn, local authorities or regional cities and countries will be able to use this knowledge base to better understand their own needs in partnerships. This would allow them to leverage technology and innovation for a sustainable competitive advantage and to make informed decisions to invest in research and development (R&D) and purchasing policies and practices (Tshabalala & Khoza
The scope of this study is limited to managing competitive advantage through technology and innovation and its impacts on service delivery at Kaohsiung City Government, Taiwan. This study also shed much light on how managing innovation and technology influences business survival in an unprecedented and unavoidable competition in the business world environment. This is also true in the context of local government authorities or metropolitan cities and municipalities. From a research perspective, restricting the study to Kaohsiung City Government, Taiwan, minimises the scope of subject area by narrowing it within manageable terms, particularly that Kaohsiung City is the second largest city in Taiwan, and moreover, Kaohsiung City is an industrial harbour for Taiwan. The main purpose of this research study is to provide a framework for assessing the effects of managing competitive advantage through technology and innovation in the context of metropolitan cities. This study also helps to provide an understanding of how technological innovation factors affect the performance of organisation effectiveness.
In contemporary business practices, globalisation led to significant shifts. Recently, as a result of ongoing shifts in global markets, technical status has been altered. The rising need and value of technical business operations have prompted interest in fundamental technical and innovation thinking. Several concepts have been developed, for instance, the integrated technology and innovation management concepts that stem from (Bleicher
The competitive advantage of an organisation is an essential instrument for businesses in market competition and the fundamental technological competencies of entities, like city government or metropolitan cities and municipalities, are believed to be significant tools for institutional development. In recent times, more innovation accomplishments and advanced innovation capability have enabled organisations to gather more specialists and innovative ideas, which are new catalysts for economic growth and development path for any organisation. Similarly, the survival and development of an organisation cannot be detached from the influence emanating from both national and international environments (OECD
Every business organisation has several technical functions. Literature demonstrates that companies can use the technology in different ways to retain a competitive advantage including the introduction of new goods and services, improvement in product efficiency, the design and manufacture of tailor-made products for the intended customers (see
Impacts of technologies on business management.
Business activities | Impacts on business |
---|---|
Reduced Costs of Operation | For example, Dell Computer Corporation used technology to lower manufacturing and administrative costs, enabling the company to sell computers cheaper than most other vendors. |
New Product and Market Creation | For example, Sony Corporation pioneered the technology of miniaturisation to create a whole new class of portable consumer electronics (such as radios, cassette tape recorders and CD players). |
Adaptation to Change | In the early part of the 21st century, companies addressed how small devices such as cell phones, personal digital assistants (PDAs) and MP3 players could practically become and how each product could support various features and functions. For example, cell phones began to support e-mail, web browsing, text messaging and even picture taking as well as phone calls. |
Improved Customer Service | The sophisticated package-tracking system developed by Federal Express enables that company to locate a shipment whilst in transit and report its status to the customer. With the development of the World Wide Web, customers can find the location of their shipments without even talking to a Federal Express employee. |
Reorganised Administrative Operations | For example, the banking industry has reduced the cost of serving its customers by using technologies such as automated teller machines, toll-free call centres and the Web. As of early 2005, the cost of a bank transaction conducted by a human teller was approximately $2, compared to $1 for a telephone banking transaction, $.50–1.00 for an ATM transaction and about 10 cents for banking over the Internet. |
The global business climate is constantly evolving to such an extent that critical changes are needed to prevent adverse effects on the strategies of the company. Companies must adapt to the requirements of their internal and external environments to maintain their marketplace in the sector. Innovation must be based on a new (or significantly enhanced) product, process, technological promotion or organisational strategy. It includes products, processes and strategies initially created by corporations and collected from other institutions or businesses, such as the literature, including product innovation, method innovation, marketing innovation, organisation’s innovation and concept innovation (Gibbons et al.
Technological innovation is a diversified aspect, which addresses the acquisition of new products or processes or the use of technology in broad terms, change management. Throughout the process, companies, using a competitor benchmark in the industry, gain competitive advantages by systematically choosing, introducing and leveraging available technology. Considering these contemporary explanations on technological innovations and their implications on competitiveness, early scholarly articles also raise similar arguments. In fact, current scholarly articles on technological innovation build on early works on this subject (Zhang et al.
The problem of competitive advantage and its effect on an organisation’s operations are critical at this juncture. According to Dirisu, Iyiola and Ibidunni (
In addition to the dimensions discussed above, quality products are also determined to be essential for a business’s competitive advantage (Srivastava, Franklin & Martinette
The aspect of Strengths, Weaknesses, Opportunities and Threats (SWOT) is a business device that helps business organisations to analyse their strengths in business, weaknesses they face, opportunities available to them and weaknesses involved in operations (Nouri, Karbassi & Mirkia
Strengths, Weaknesses, Opportunities and Threats analysis starts with an environmental scan where the management of an organisation conducts an internal and external environment scan to determine the first stages of the strategic management planning process (see
The patents, trademarks or copyrights available in the organisation.
The existence of strong brand names in the business.
High levels of referrals, good reputation and positive word-of-mouth from the customers.
Costs advantages available to the organisation.
Organisation’s access to high-quality goods and services that increase customer value.
The firms’ favourable access to distribution networks.
Linkage between environmental analysis and Strengths, Weaknesses, Opportunities and Threats matrix.
On the other hand, internal environmental analysis also enables an organisation to determine its internal weaknesses (Riston
Lack of trademarks, inventions and patent protection.
The existence of poor brand names in the organisation.
Poor reputation amongst customers and high levels of negative word-of-mouth.
High operating costs.
Lack of access to high-quality products, which increases customer value.
Poor access to effective and efficient key distribution channels.
To create strategies that consider the SWOT profile, a matrix of these factors can be constructed as presented in the SWOT analysis matrix (see
Strengths, Weaknesses, Opportunities and Threats analysis matrix.
TOWS | Strengths | Weaknesses |
---|---|---|
TOWS, Threats, Opportunities, Weaknesses and Strengths.
The SWOT analysis matrix (see
The methodology used in this study is mainly the secondary data analysis. This section rationalises the selection of the preferred methodology, deals with data collection and data analysis and covers how data originated from secondary data sources. With regard to the literature reviews for this study, the selection of diverse scholarly works for this study takes a thematic approach. The review covered a variety of scholarly works that are deliberated together with the data compilation and elements of analysis, whereas for the secondary data selection and collection methodology, the established criteria for inclusion and exclusion procedures are also extensively reviewed, together with the selection stratagem. The boundaries of the research approaches are broadly deliberated, followed by the ethical contemplations adopted for this research study.
This study collected data through the secondary data analysis process, which allows the researchers to locate and utilise the summarised data or information collected by others and consequently shape a hypothesis, rather than the traditional technique for first framing a theory, at that point trying to demonstrate it through surveys and then looking for substantiating it through questionnaires (Camic, Rhodes & Yardley
The research design used in the present study was a comprehensive secondary data analysis. The target population for the study had covered secondary data from Kaohsiung City Government only.
Therefore, the target population was, therefore, specifically on the secondary data sources such as workshops, document analysis/review or desktop study, official statistics, technical reports, scholarly journals, literature review articles, trade journals, reference books, government documents, research institutions, universities, libraries and inter alias. These data were derived from the Taiwanese Nationwide Document Delivery Service (NDDS), through the STPI under the Ministry of Science and Technology that concerns about the Kaohsiung City Government, Taiwan. This was performed in order to obtain relevant secondary data from management information systems (McCaston
This study approach was selected as it is linked with secondary analysis, which is more cost-effective and suitability. This is also because the secondary dataset is usually easily accessible and the researcher can base his/her project on a large scope of data (McCaston
The subjective research technique is utilised to assist in answering enquiries concerning the nature of phenomena with the motivation behind depicting and understanding them from the secondary data analysis point of views. The qualitative research methodology eased the analyst to assess things in their natural surroundings, endeavouring to understand, or interpret occurrences concerning the consequences that individuals carry with them.
Johnston (
The use of these existing data offers a realistic option to researchers who might have constrained time and resources. This research work emphasises on the attests that secondary data analysis is a reasonable technique to employ throughout the time spent when a methodical technique is taken later. This study contemplates to add to the discourse of secondary data analysis as an exploration strategy for managing technology and innovation for sustainable competitive advantage to illustrate and indicate the technique, advantages and constraints in leading an examination using an optional data inquiry technique.
The idea of secondary data investigation and analysis initially rose with Glaser’s talk of re-breaking down information, ‘which were initially gathered for different determinations’ (Glaser
[
Most research studies begin with a consideration of understanding what is currently well-known and what remains to be discovered out concerning a point by looking into secondary sources and analyses that others have early led in the scheduled region of conspiracy. Secondary data analysis makes this one advance further, involving a scrutiny of beforehand collected data in the area of interest. Although secondary data analysis is an easy-going methodology and could be utilised in rare diverse methods, it is equally an empirical practice with bureaucratic and evaluative developments, likewise as there are in assembling and measuring fundamental data (Crossman
Given the undeniable availability of already collected data to researchers, it is imperative to furthermore distinguish secondary data analysis as an orderly research technique. Conversely, various systems are available to direct researchers as they lead secondary data analysis (Andrews et al.
Secondary analysis is a methodical technique with technical and evaluative phases and still, there is a non-existence of writing to portray a certain technique; thus, this article suggests a technique that commences with the improvement of the research questions, at that point the identification of the dataset and by means of assessing the dataset. This system is represented by the present research in which the investigator examined the ways to deal with managing technology and innovation for competitive advantage.
The key benefits related to secondary analysis are the cost viability and suitability it offers. Because another individual has effectively collected the data, the investigator does not require to dedicate monetary assets for the collection of data. At the stage, when great secondary data are reachable, investigators can obtain and utilise high-quality larger datasets, for instance, those collected by sponsored studies or organisations that composed of bigger samples and hold substantial coverage. The bigger samples are more demonstrative of the target population and consider more noteworthy legitimacy and more generalisable conclusions. Having admittance to this kind of data provides access to all investigators, even the beginner or unfunded researcher, consequently levelling chances and building limit with respect to empirical study (Johnston
This article followed all ethical standards for a research without direct contact with human or animal subjects.
This section presents the findings and key outcomes obtained from the study with regard to the issues of managing competitive advantage through technology and innovation in the context of metropolitan cities, particularly from the Kaohsiung City Government, Taiwan.
Under this section, we discuss the findings from the present investigation, particularly in terms of R&D and more specifically, how R&D is used at Kaohsiung City Government to enhance technology and innovation.
Municipal administration innovation proposals: The study has revealed that, in order to inspire and empower employees of different Departments and schools under the government to propose innovation with respect to the current city’s development or reform and to enhance municipal services or quality and organisational effectiveness, the 2016 Municipal Administration Innovation Proposal Review and Awards were composed by the Kaohsiung Municipal Administration Innovation Proposal Review and Award Rules. Different Departments submitted 79 proposals, whereby specialists and researchers were procured to lead the reviewing process (Kaohsiung City Government [KCG]
Kaohsiung municipal administration innovation proposal results (2016).
This study has discovered that the Kaohsiung City Government through its seven different Departments or agencies had outsourced seven diverse research projects in the year 2016 (see
Kaohsiung City Government Research and Development Results Statistics (2004–2014).
Kaohsiung City Government agencies outsourced research cases in 2016.
Item | Commissioning agency | Research topic | Commissioned Agency |
---|---|---|---|
1 | Research, Development, and Evaluation Commission | 1999 Big Data Analysis and Utilisation Research | Eland Information Co., Ltd. |
2 | Social Affairs Bureau | Early Identification Model and Medical Care Team Operating Procedure for Sexual Assault Cases in Kaohsiung City | National Pingtung University of Science and Technology |
3 | Labor Bureau Bo-Ai Vocational Training Centre | 2016 Study and Analysis of the Effectiveness of Job Redesign Service for Mentally and Physically Disadvantaged People in Kaohsiung City | National Pingtung University of Science and Technology |
4 | Kaohsiung Museum of Fine Arts | View of the Kaohsiung Awards: How Young Artists View the Kaohsiung Awards | National Kaohsiung Normal University |
5 | Social Affairs Bureau | Kaohsiung City Children and Adolescents’ Life Situation and Needs Survey | Kaohsiung Medical University |
6 | Research, Development, and Evaluation Commission | Introduction of Kaohsiung City Elderly Long-Term Care Service into Social Enterprise Operation Method for Use | National Sun Yat-sen University |
7 | Kaohsiung Museum of Fine Arts | Southern Taiwan Fine Arts Association – Southern Exhibit (commissioned research project) | National Pingtung University |
Annual research, subsidies and rewards: To additionally advance innovative work through R&D, the city government had drawn up the Kaohsiung City Government Outlines for Evaluating, Reviewing and Rewarding Research and Development Projects. This study discovered that in 2014, research financing that added up to NT$96 000 was given to 25 departments and school ventures and a sum of 36 research outcomes were submitted (KCG
Technological and innovative components are factors that are being utilised for assessing accessible choices concerning technological competences. Many organisations think of them as a vital instrument for enhancing activities and functions. Technological variables are one of the different external environment factors that influence organisations significantly and are likewise an indispensable part of the PESTLE investigation. In the present situation, most extreme reliance on hardware, innovative elements can have more impact on business activity and achievement all around than at any other time (KCG
Technology and innovation patterns influence organisations and business entities at multiple levels. At the stage when employees are efficient, they end up being productive. Furthermore, when a business is more into interaction with its existing and prospective customers, it has more opportunities to establish a solid customer trustworthiness base (Choy & Park
The technological environment of business has tremendously transformed the manner in which organisations operate. This is the case with the Kaohsiung City Government as the progressions in technology and innovation around data innovation within the City Government have comparatively presumed control over each division of the institution. Currently, data are kept in information servers and cloud innovation as against the old method for putting away information in registers and records. Moreover, advancement of innovation and technology has similarly presented computerised showcasing stratagems through which organisations can offer their items and services. Indeed, even the innovative work by R&D divisions in organisations have changed their method of working and further developed systems for the improvement of items and services that have been presented just through technological development. For instance, Siemens and Boeing were massively putting resources into the adaption of 3D printing strategy for item planning. They trust that this will quicken the planning procedure, diminishes creation cost and enhances the viability of outlining (Abdulwahed
Nowadays, technology has acquired a significant revolution through which organisations gather, record, recover and use information, which can equally help them in creating pivotal business approaches and techniques (Yuan
Cities in Taiwan are densely populated areas with greatly developed industry and commerce, particularly Kaohsiung City as an economic hub for Taiwan. They normally comprised well-designed functional zones, for example, residential, industrial and commercial zones, and have administrative jurisdiction (Wu et al.
In order to manage the City Government’s different smart city developmental assets, encourage collaborations amongst industry, government, scholarly and research establishments and utilise cross district/city administration technique to enable different departments to obtain the Smart 4G Broadband City Project from the Industrial Development Bureau, Ministry of Economic Affairs (MOEA), (KCG
The City government has given NT$ 17 million in appropriations from the Architecture and Building Research Institute, Ministry of the Interior and moreover, NT$ 4 m from the National Development Council’s ‘Smart Homeland’ to sort out the Kaohsiung Ecomobility Smart Community group, the Kaohsiung City Information Platform, the Kaohsiung City Smart Creative Settlement Virtual Reality Experience Space and the Air Quality Micro Sensory Net and Rotation System for the 2017 Ecomobility World Celebration (KCG
Projects for promoting smart city development at Kaohsiung City Government.
Items | Directing county/city | Proposed theme | Cooperating counties and cities |
---|---|---|---|
1 | Kaohsiung City (Tourism Bureau) | Smart travel | Chiayi City, Chiayi County and Tainan City |
2 | Kaohsiung City (Education Bureau) | Smart health and safety | Pingtung County and Chiayi County |
3 | Pingtung County (Department of Agriculture) | Smart agricultural information platform | Kaohsiung City |
4 | Taipei City (Department of Information Technology) | Local specialties 020 | Kaohsiung City, Taichung City and Keelung City |
Government strategy and different guidelines, ideologies and directions affect the company’s technology and innovation system and its endeavours towards advancement of both as far as financing and arrangement of rules for improvement are concerned. At a large-scale level, a portion of the basic components are strategies embraced to advance macroeconomic dependability, policies warranting resources allotment as per the most preferred angle, quick gathering of physical and human capital, improvement of horticultural sector and advancing skilful administrations (Dasgupta
However, in Taiwan, there is a need to balance technology and innovation policies that help conventional industry with provisions that better react to issues of rivalry and enterprise development (Sağ, Sezen & Güzel
The regulatory boundaries to entry furthermore play a critical role in determining the dominance of companies in certain areas. Thus, strengthening of patent laws equally assumes a critical part in changing institutions from imitators to pioneers (Kale & Little
Based on the result of reviewing and evaluating the relevant literature and theories taken together, a model was developed and proposed. This model describes the relationship between technology and innovation management strategy, technological innovation and organisational factors. Technological innovation in an organisation is determined by its technology and innovation management strategy, which has its origins in the business strategy of the organisation or firm. The feedback attained from the application of technological innovation and the progression of technology should form the foundation for the organisation to evaluate its technology and innovation management strategy. The function of the government along with several directives, the technology foresight, the technology and innovation scouting all have positive effects on the organisation’s technology and innovation management strategy. However, the organisational factors, technology foresight, as well as technology and innovation scouting all play a significant role in establishing a learning environment to encourage the management of technology innovation for sustainable competitive advantage. The bi-directional arrow between technology and innovation management strategy and organisational factors visualises that it is not only the organisation’s technology and innovation management strategy, which has an effect on diverse organisational factors. However, different factors such as the expertise level and accumulated experience of employees play a significant role in relation to the organisation’s option of technology and innovation management strategy for implementation. The outcome on evaluation of effects on managing technology and innovation for sustainable competitive advantage can be measured as organisational performance with respect to its operations and business effects on service delivery. The model depicted in
Technology and innovation management strategy model.
Managing sustainable competitive advantage through technology and innovation is a complex issue and needs further consideration as far as theoretical development and approaches to the management of technology and innovation are concerned. This investigation was provoked and driven by the absence of consideration given in the available literature and the framework (theory) to the impact and strategies of managing sustainable competitive advantage through technology and innovation in the metropolitans or municipals and local authority governments context, especially in the public sectors of the local authorities’ governments (Hunting, Ryan & Robinson
At the same time, the conceptual framework developed in this study, reflecting the bond between managing competitive advantage techniques through technology and innovation and business performances can be applied to different business sectors of the central government, to different businesses or to different countries confronted by similar challenges and issues of managing technology and innovation (Desouza et al.
In city governments in Taiwan and across the globe, managing sustainable competitive advantage through technology and innovation appears to have similar challenges and local government organisations confront several common challenges including:
Political shifts as a result of changes in local governments’ administrations and leadership.
Restricted resources and consistent demands putting pressure on local or city governments’ services.
Mounting pressure to keep on delivering appropriate and astounding administrations and high-quality services with no space for open experimentation or disappointment.
Despite these difficulties, there are few cases of managing sustainable competitive advantage through technology and innovation practices in city governments, where technology and innovation are best comprehended and best bolstered. This is because of the presence of various variables, including:
Gaining support from senior management plus management backing within political organisations.
Understanding of the value of technology and innovation and a capacity to tell this story and engage people in this narrative.
Sharing skills and information to empower others to make positive change and going past affecting people’s abilities to make culture change.
There are crucial technological innovation factors that are involved in managing technology and innovation that were discovered through this research study, which will provide interesting learning for those looking to implement and manage them for positive changes within their own local government organisations.
Five key significant effects on managing sustainable competitive advantage through technology and innovation in the local government authorities are identified through this research:
Technology and innovation transform organisation’s operations and promote business development.
Promotion of the Inter-Agency Public Services Informational Platform, enhancing service delivery and added monetary value for taxpayers.
Promotion of smart city development and industrial development and transformation.
Infrastructure and Information Security Management – Promotion of Information Security Management System (ISMS).
The ISMS of the City Government, as well as organising information security reporting drills.
Managing sustainable competitive advantage through technology and innovation is not a means to an end, yet a set of tools and strategies in ensuring proper service delivery to the people and communities. It is therefore essential to have a realistic vision and practical approaches to the management of sustainable competitive advantage through technology and innovation and goal-oriented objectives for city governments and the City Government must take necessary steps to develop strategies for managing technology and innovation that will set the City Government on the way to work better on service delivery and distinctively utilising new technology and innovation.
The authors would like to sincerely thank Ms. Melissa Chen, Planning and Promotion Division, Nationwide Document Delivery Service (NDDS), Science and Technology Policy Research and Information Centre (STPI) and National Applied Research Laboratories (NARLabs), Taiwan, who granted permission to access data from NDDS for this research study. The authors would also like to extend their sincere gratitude to Ms. Genevieve Bakam Fotso for assisting in editing and proofreading.
The authors have declared that no competing interests exist.
K.T.T.A. conducted the overall research study whilst being registered as a student at the Tshwane University of Technology. E.I.E., V.N. and S.P. supervised the findings of this work. All the authors discussed the results and contributed to the final manuscript.
This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.
The data that support the findings of this study are available from the corresponding author (K.T.T.A.), upon reasonable request. The linkage between Environmental Analysis and SWOT Matrix (
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any affiliated agency of the authors.