Managerial actions using historical values for tackling hyper-competitive environments: The case of Toyota

Deskripsi

This study provides a causalexplanation concerning how managerial actions usinghistorical values contribute to dynamic capabilities, orsustaining competitive advantage in changing environ-ments. Based on historical methods that consist mainlyof hermeneutics, contextualization, and source criti-cism, it analyzes sources and data on how Toyota stra-tegically responded to the competitive dynamics of theautomotive industry centered around modularization.This resulted in the identification of three types of man-agerial action using historical values—filtering, integrat-ing, and modifying—which have a rhetorical influenceon the processes of strategic diagnosis, choice, andaction respectively in ways that strengthen the micro-foundations of dynamic capabilities. This enables thefirm to adapt to hyper-competitive environments whilemaintaining the idiosyncrasies of its core capabilities.