The Influence of Virtualization of Resources Acquisition Processes
on the Enterprises Competitiveness
Dorota Jelonek, Cezary Stępniak, Tomasz Turek and Leszek Ziora
The Faculty of Managemet, Czestochowa University of Technology, al. Armii Krajowej 19b, 42201, Czestochowa, Poland
Keywords: Virtualization of the Processes, Enterprise's Resources, Acquisition of Resources, Resource-Based Theory.
Abstract: Throughout the past few years, changes in the processes of enterprise's resources acquisition have been
reflected by the news opportunities provided by web-based technology, changes in the behaviours and
expectations of business partners and customers as well. The aim of the paper is to demonstrate that
virtualization of resources acquisition processes has essential effect on the achievement of competitive
advantage by enterprises in the market. Importance of the resources in the enterprise has been justified
based on the resource-based theory. Selected typologies of the resources in the enterprise were presented
with the directions of changes in the process of resources acquisition. A model of the process of resources
acquisition was also proposed. The study also emphasizes the opportunities for virtualization of different
types of resources acquisition processes in enterprises. The study aim was achieved using the results
obtained in a survey carried out in a big enterprise from the food processing sector.
1 INTRODUCTION
As far as historical approach is concerned,
enterprises had to collect resources in order to use
them as a source of competitive advantage.
Contemporary companies do not collect all the
necessary resources. Increasingly more focus is
being placed on ensuring access to specialized
global suppliers, ability of re-grouping of resources
(even on a global scale), capabilities of fast response
to changes in the environment and flexibility.
Web-based technologies allow for introduction
of deep changes in the processes of resources
acquisition in enterprises. Acquisition of resources
might be perceived from the strategic point of view,
particularly if its goal is to acquire or ensure the
access to unique resources. This process is also
performed within routine activities in an enterprise
with operational importance. The use of web-based
technologies might in both cases bring huge benefits
and affect competitiveness of the enterprise in the
market. The resource-based theory might provide a
reference for all the type of resources: human,
financial, tangible, informational and relational
while utilization of web-based technologies in
virtualization of the resources acquisition processes
positively affects the enterprise's performance.
2 RESOURCE-BASED THEORY:
DISSEMINATION AND MAIN
TRENDS
2.1 The Concept of
Resource-Based Theory
Resources are considered to be the entirety of
material and non-material factors that can be used
for the processes that occur in the enterprise. Basic
problems in business activity include limited
resources, ambiguity of the methods of collecting
and allocation of the resources and lack of self-
sufficiency in enterprises. Resources are the basis
for Resource-Based Theory and for one concept of
management: flexible organization and management
by opportunities (Krupski, 2011). In the Resource-
Based Approach, an enterprise is a unique collection
of resources, but not all the resources have potential
for creation of competitive advantage (Clulow et al.,
2007).
Resource-Based Theory (RBT) posits that
competitive advantage and performance are shaped
by firms’ unique resource endowments (Barney,
2001). Specifically, a resource is capable of
generating sustainable performance advantages
when it satisfies following criteria:
320
Jelonek D., Stepniak C., Turek T. and Ziora L..
The Influence of Virtualization of Resources Acquisition Processes on the Enterprises Competitiveness.
DOI: 10.5220/0004524503200327
In Proceedings of the 4th International Conference on Data Communication Networking, 10th International Conference on e-Business and 4th
International Conference on Optical Communication Systems (ICE-B-2013), pages 320-327
ISBN: 978-989-8565-72-3
Copyright
c
2013 SCITEPRESS (Science and Technology Publications, Lda.)
resources must be valuable such that they help
firms increase efficiency or enhance buyers’
willingness to pay premium prices,
resources need to be sufficiently rare so that they
are not readily available to competitors,
resources must not be easy for competitors to
imitate or substitute.
Resources that satisfy these criteria are called
‘strategic resources’ (Chi, 1994).
It is important in the resource based view of the
firm to define resources which, with the Barney's
(2001) approach, include all the assets, abilities,
organizational processes, characteristics, information
and knowledge controlled by the enterprise and
allowing for implementation of the strategies and
increasing the efficiency. When selecting the
strategy of competition, the enterprise does not have
to analyse the competitive position in detail with
respect to the sector it operates in. More important
thing is to manage their resources in order to
develop the distinguishing abilities and key
competencies. Other important factors are abilities to
integrate, create and reconfigure the resources (Wu,
2010).
The resource-based theory is a mixed internal-
external approach. First of all, it concentrates on the
internal resources in the enterprise and then analyses
the enterprise's environment, including the
opportunities for acquisition of the resources from
the environment.
Resources and skills reconfigured into key
competencies translated into the competitive
advantage of the enterprise (Hamel, Prahalad, 1990).
2.2 Typologies of Enterprise Resources
There is no single generally accepted classification
of resources which has been adopted in the area of
management. Resources have always been an
important element in enterprise's operation and this
problem has been often considered in the literature.
From the historical perspective, the most important
resources were those material. Kraljic (1983)
distinguished the following types of material
resources: strategic items,
bottleneck items, leverage
items, noncritical items.
From the strategic viewpoint, it is also essential
to distinguish (Ghemawat, delSol, 1998):
resources which are specific for the enterprise and
for application (are inflexible and the costs
connected with withdrawing them are very high,
e.g. changing the brand),
resources which are non-specific (are inflexible,
easy to be replaced without extraordinary costs)
A division of the resources which has often been
emphasized in the literature is division into tangible
and intangible resources (Hall, 1993); (de Wit and
Meyer, 2007). The tangible resources include land,
buildings, materials or cash. The intangible
resources are further subdivided into relational
(relations and reputation) and competences
(knowledge, abilities and attitudes).
The classification presented in Table 1 is one of
the most transparent and comprehensive approaches
to the diversity of resources in enterprises.
Table 1: Classification of resources for the business model
concept.
Type of
resources
Examples
Physical
geographic location, land, real estates,
machinery, equipments, raw material
reserves
Financial
external funds, internal funds, other
financial instruments
Legal
agreements, patents, licenses, copyrights,
registered designs, trade secrets,
trademarks
Relational
relationships inside the firm, supplier
relationships, customer relationships,
competitor relationship, external partiers
relationships
Human
personal networks, individual experience,
education, personal attributes
Organizational
culture, structure, routines, brand,
processes, reputation
Informational
industrial information, customer
information, supplier information,
internal information, product information
Source: (Seppänen, 2009)
One specific resource in enterprises is the
knowledge. In the nineties of the 20th century, the
concepts started to permeate business that promoted
the role of knowledge in formation of competitive
advantage. Knowledge causes that the resources
allow an organization to create value.
The utilization of all the types of resources
throughout the growth of the enterprise is important
and depends on the concrete conditions. The most
important factor in the dynamically changing
environment of enterprises might be the ability of
efficient implementation of the process of
acquisition of the resources in the enterprise.
2.3 The Concepts of Resources
Acquisition in Enterprises
In terms of trade, acquisition of resources has been
known since the dawn of civilization (barter,
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321
precious metal coins, paper exchange, electronic
exchange). In their attempt to collect the resources,
contemporary enterprises utilize not only a well-
known form of purchasing but also the contracts of
exchange of resources, agreements on readiness of
experts to cooperate, innovative and marketing ideas
from customers and potential customers found in the
Internet forum websites owned by the enterprise,
crowdsourcing, virtual community, outsourcing etc.
The view of the resources available in the enterprise
has evolved:
from what is available within a department
from what is available within a corporation
from what is available within a supply chain
from what is available within a society of
consumers
towards what is available everywhere in the world
resources (Prahalad and Krishnan, 2008).
The direction of global acquisition of the resources
has been also accentuated by Trent and Monczka
(2002). It was shown in the figure 1
Figure 1: Current and Expected International Purchasing
and Global Sourcing Levels.
The process of resources acquisition might be
composed of a variety of stages that depend on
different factors, on the purpose of the process etc.
In a conventional model of the process of resources
acquisition, the following stages have been
emphasized:
1. Design and planning
2. Development of a strategy for acquisition of
resources
3. Identification of suppliers
4. Creation of the market (price/quality/value
added)
5. Making transactions
This model can be relatively easy implemented for
acquisition of material resources (Prahalad and
Krishnan, 2008).
3 VIRTUALIZATION
OF RESOURCES ACQUISITION
PROCESSES
With the growth of the Internet, e-sourcing has
become an important tool as well as for strategic and
for operational level of enterprise's functionality.
Acquisition of resources on the strategic level is
considered as a process of value generation added or
composition of the set of relationships with suppliers
in order to get a competitive edge (Lysons, 2004).
Acquisition of resources at the operational level
includes the resources which do not have key
importance to the enterprise, are standardized,
generate high profits but with low supply risk.
Considering the typology of the resources presented
in Tab. 1, strategic acquisition of the resources
relates to what is known as “strategic items” and
“bottleneck items” while operational acquisition of
the resources relates to the “leverage items” and
“non-critical items”.
Strategic e-sourcing is the process of using Web-
based technologies to support the identification,
evaluation, negotiation, and configuration of optimal
grouping of trading partners into a supply chain
network that can efficiently respond to changing
market demands. It is during the sourcing cycle that
an organization defines the overall cost and structure
of its products and its supply network (Aberdeen
Group, 2002).
E-sourcing is a term that refers to the use of
Internet-enabled applications and decision support
tools that facilitate competitive and collaborative
interactions among buyers and suppliers through the
use of online negotiations, reverse (decreasing bid)
auctions, and other related tools.
At present, virtualization of resources acquisition
processes is a quite good solution for the enterprises
aiming to adapt to the fierce competition with
flexible and agile organizational structures. E-
sourcing is one of the processes which, if effectively
implemented, makes the enterprise much closer to
the concept of virtual business.
Virtual businesses are e-organizations, cyber
organizations or e-enterprises that can perform the
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business goals and missions over network
technologies (Gökmen, 2011).
New models of virtual business need new model
of the resource acquisition process. Virtualization of
resources acquisition processes might be composed
of the following stages:
1. Creation of ideas. Which resources does the
enterprise need?
2. Planning and designing of the process of
acquisition
3. Implementation of the process of acquisition of
resources
4. Improvement of the process of acquisition of
resources
Support from Web-Based Technologies for stages in
the process of acquisition of resources was shown in
table 2.
Table 2: Support from Web-Based Technologies for stages
in the process of resources acquisition.
Stages in the
process of
resources
acquisition
Support from Web-Based
Technologies
Creation of ideas.
Which resources
does the
enterprise need?
Websites as inspiration
Sector-based portals
and vertical portals
Extranet
Virtual organizations
Semantic networks and
ontological solutions
Planning and
designing of the
acquisition
process
Websites used for resources and
partners searching
Sector-based portals and vertical portals
SOA, SaaS, MRP/ERP in Cloud,
GIS in Cloud
VPN, BPML, BPMN
e-banking for financial planning
Implementation
of the resources
acquisition
process
Websites owned by business partners
MRP/ERP in Cloud,
GIS in Cloud
VPN
WebSide of Virtual Organization
e-banking for financial settlements
Improvement of
the resources
acquisition
process
Business analytic tools
e-benchmarking and e-testing
BPML and BPMN
Virtual organizations
Websites as sources of knowledge
Sector-based portals and vertical portals
Source: Authors' own study
Organizations using Web-based sourcing
technologies have been able to do the following:
identify, qualify, and negotiate with an increased
number of suppliers, creating more competitive
bidding environments,
negotiate an average of 5% to 20% unit price
reduction,
shorten sourcing cycles by an average of 25% to
30%,
reduce time to market cycles by 10% to 15%,
reduce process costs for sourcing engagements,
improve quality levels for the goods and services
being sourced,
increase access to technology and service
innovations through improved collaboration,
apply strategic sourcing to a broader range of
products and services,
promote knowledge sharing and standardization of
sourcing best practices across the enterprise
(Aberdeen Group, 2002).
Support from Web-based technologies (WBT) for
during virtualization of acquisition processes of:
human resources, financial resources, material
resources, information resources and relational
resources was shown in table 3. The examples of
action taken and WBT support was presented.
Table 3: Support from Web-Based Technologies for
virtualization of acquisition processes of: human
resources, financial resources, material resources,
information resources and relational resources.
Actions taken
Support
Web-based technologies
Human Resources
Recruitment of
employees
- WWW: recruitment advertisement,
specification of requirements
- WWW (Web 2.0) - electronic forms for
sending letters of application, CVs, tests
of specialized knowledge, test of
knowledge about the enterprise
- specialized websites (headhunters)
- professional social networks
- common social networking services
(such as Facebook)
Cooperation
with experts
- one-off orders
- constant
cooperation
- vertical portals
- websites owned by scientific and
technology associations
- bases of cited publications
- audio- and video-conferences
- blogs and message boards
Resources of
reserve human
resources
(availability)
- information about websites: contact form
- enterprise-owned websites and fan pages
in social networks
- telework
- web filtering with ontological methods
Financial Resources
Searching for
business angels
- electronic rankings of the richest people
in the world, in the country and region
- project waiting room
- spin-off enterprises exchanges
- social networks
- information and publications on charity
actions and philanthropic activity
- Web 2.0
- Internet search engines
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Table 3: Support from Web-Based Technologies for
virtualization of acquisition processes of: human
resources, financial resources, material resources,
information resources and relational resources. (Cont.)
Seeking venture
capital
- specialized sector-based portals
- sector-based social networks
- Internet announcements: finding
VC investors and enterprises that
start business activity
- Internet search engines
- electronic systems of finding business
partners
Applications for
national and
international
projects
- websites owned by the institutions that
allocate funds within projects
- tools for support of filling in the
applications and verification of the
properly filled applications
- Internet forums, websites owned by
other project participants
Searching for
sources of
investment
financing
- financial vertical portals
- virtual financial advisers
- credit simulators
- sector-based portals
- sector-based social networks
- Internet search engines
Settlements with
suppliers
- e-barter: supporting goods-to-goods and
goods-to-services exchange
- e-factoring
- electronic banking
- exchange and acquisition of virtual
financial resources (e-cash, payPal etc.)
Material Resources
Leasing
- websites owned by financial institutions
- electronic wizards of leasing applications
- e-leasing: software, licenses, virtual
servers, ASP etc.
Making a
contribution in
kind: partners
- Internet search engines
- sector-based portals
- virtual organizations
Good exchanges
- e-market
- Internet shops and wholesalers
- Internet auctions
Price comparison
- electronic systems for price comparison
- e-benchmarking and e-testing
- portals for exchange of opinions about
products and services
Logistics
- e-SCM
- e-logistics
- SaaS (Software as a Service): making
applications available (e-SCM, ERP) as
web services
Information Resources
Information
about internal
information
resources in the
enterprise
- state-owned portals
- corporation-owned portals
- enterprise-owned portals
- dropboxes
- e-survey
Information and
data from
partners and
contractors
(B2B)
- corporation-owned portals
- SaaS (Software as a Service)
- Extranet
- VPN
Table 3: Support from Web-Based Technologies for
virtualization of acquisition processes of: human
resources, financial resources, material resources,
information resources and relational resources. (Cont.)
Finding
information about
the environment:
- closer and further
environment
- macro
environment
- competitors
- websites owned by competitors
- electronic reports and market analyses
- sector-based portals
- statistics from electronic auctions
and internet shops
- e-government
- GIS portals
Acquisition of
economic and
financial
information
- economic portals
- stock exchange quotations
- websites owned by state and commercial
banks
- financial and tax consulting
- Internet search engines
Acquisition
of information
about fashion,
trends and
behaviours
- Internet search engines
- analyses and statistics for web traffic
- websites owned by manufacturers, internet
shops, portals for exchange of opinions
- reports of TopSeller type
Searching
demographic
information
- analyses and reports for web traffic in
the Internet
- websites owned by statistical offices
- GIS portals
Acquisition of
knowledge
- e-learning
- Internet forums
- electronic publication of conference
materials
- electronic libraries
- electronic consulting services
- electronic designer offices
Acquisition of
technologies
- websites owned by research and
development centres, universities,
university centres
- e-technology (application, servers, data
wholesalers, SaaS)
- virtual fairs and exhibitions,
- commercial CAD/CAM design
Relational Resources
Relations with
customers
- e-CRM
- social media, fan pages
- newsletters
- mailing
- Web 2.0
Relations
with partners
- e-CRM
- data and documentation exchange
platforms (SharePoint)
- dropboxes: virtual folders for exchanging
and sharing files
- social media, fan pages
- newsletters
- mailing
- partner zones in enterprise-owned websites
- Web 2.0
Relations with
offices and public
administration
- websites owned by the offices
- e-office
- electronic applications, reports and statistics
Relations with
employees
- e-work
- e-learning
- headhunting services
Source: Authors' own study
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4 CASE STUDY
The survey was carried out in a big enterprise from
the sector of food processing. The authors of the
present paper have cooperated with for over ten
years in the field of consulting of implementation of
IT systems that support the activities in a number of
areas of the enterprise's operation and systems for
support of decision-making. The enterprise is
developing dynamically. It is being increasing the
range of products offered in the market,
implementing the quality assurance systems,
automating and informatization the activity and
successfully implements the strategy of entering into
the electronic market and developing e-business.
The aim of the presented study was to verify the
following hypotheses:
H1: Virtualization of the resources acquisition
processes allows for improving competitive
advantage of the enterprise in the market.
H2: The use of web-based technology positively
affects the results obtained in the market more than
the financial results.
The study participants were the managers of all
levels of management in mentioned enterprise: the
president, two members of the board, three directors
and nine managers of individual departments. This
made 15 people in total.
A method of guided interview was used in the
survey. Scenario of the interviews with each
manager was the same. First the interviewer talked
about the opportunities of using the web-based
technology in realization of the processes of
resources acquisition, using the examples from table
3. Further, development of the implemented web-
based technology on the scale of the whole
enterprise in the past five years was also evaluated.
The respondents were asked to answer to the
following questions:
Q1: Evaluate, on a scale of 1 to 5, the effect of
the web-based technology used on implementation
of the acquisition processes of individual types of
resources (human, financial, material, informational
and relational).
Q2: Evaluate, on a scale of 1 to 5, the effect of
virtualization of resources acquisition processes on
market results obtained in the enterprise.
Q3: Evaluate, on a scale of 1 to 5, the effect of
virtualization of resources acquisition processes on
financial results obtained in the enterprise.
Scale: 1 - unimportant, 2 - insignificant
importance, 3 - moderately important, 4 - important,
5 - very important.
Figure 2: The influence of virtualization of resources
acquisition processes on the individual types of resources.
The values of the medians in Fig. 2 for individual
types of resources differ between each other. The
highest values are observed for the processes of
acquisition of information and relational resources.
The facilitation in the process of financial resources
acquisition that result from WBT solution was found
to be moderately important. The highest median was
found for the processes of human and tangible
resources acquisition. None of the respondents
regarded the effect of WBT solutions on the
resources acquisition processes as very important
(lack of 5.0 scores). An almost identical values of
the interquartile range R
Q3
–R
Q1
(1.0) were observed.
The smallest differentiation of the answers was
found for acquisition of financial and relational
resources.
Fig. 3 presents the effect of virtualization of
resources acquisition processes on financial and
market results in the enterprise.
Figure 3: The influence of virtualization of resources
acquisition processes on the financial and market
performance.
Median
25%-75%
Min.-Maks.
human resources
financial resources
material resources
information resources
relational resources
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
5,5
Median
25%-75%
Min.-Maks.
financial performance
market performance
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
5,5
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325
Substantial differentiation in the answers given by
the respondents is observed in the evaluation of the
effect of virtualization of resources acquisition
processes on market results in the enterprise. Median
reached a relatively high value (4.0) and 1/3 of the
respondents chose the highest note (5.0), with one
respondent choosing the note (2.0) and none of them
choosing the note (1.0).
The years 2008 and 2010 are distinguished by
the implementation of the virtualization of resources
acquisition process in the enterprise studied. In
2008, the website that had performed the role of a
'business card' of the enterprise was extended with
the first multimedia catalogues, order forms, and a
message board.
In 2010, the enterprise implemented the solutions
of corporate portal and integrated the information
technologies and systems, data, information and
knowledge that were present in its environment. The
effect of this enterprise was giving users the
opportunity of a personalized and convenient access
to the data, information and knowledge that match
their needs at any time and place, in a safe manner
and using a uniform interface.
Considering the two essential events in
virtualization of resources acquisition processes, the
subject of analyses included financial performance
of the firm and indicators of the market share in
2008, 2010 and 2012 years. The enterprise noted
decrease of financial results in 2012, however
market results in analysed period are on the constant,
high level. Of course, many factors decided about
mentioned results of the enterprise, but respondents
were asked only for the estimation of the influence
of resources gaining processes virtualization on the
obtained results. With respect to all the questions,
the managers of the top level evaluated the
virtualization of resources acquisition processes as
important or very important more frequently. None
of this group used the note 'unimportant'. The
managers of the lowest level used much lower notes
when responding to the questions.
Conducted studies have a preliminary character.
They are starting point to further considerations
targeting the definition of the virtuality role meaning
in the enterprises functioning. Its effect has to be the
definition whether the virtuality is a temporary
fashion, a temporarily becoming general tool which
at any moment will stop to be the factor of the
competitive advantage, and will become an
indispensable condition in the survival of the
enterprise. Standing on the ground of Resource-
Based Theory the virtuality itself can be treated as
one of essential resources of enterprises. In
conclusions, managers in the enterprise studied
evaluated the effect of virtualization of all resources
acquisition processes on the market results in the
enterprise as high. Each stage of implementation of
the web-based technologies was ”important”. A
decline in the evaluation level for financial results in
2012 should be considered in the context of
intensifying economic crisis and its strong effect on
behaviours and expectations of customers and other
entities in the environment. Both hypotheses were
verified positively.
5 CONCLUSIONS
Some advantages brought by implementation of
e-sourcing processes could be denoted as (Gökmen,
2011); (Ebrahim et al. 2009); (Hortensi, 2008);
(Kiang and Chi, 2001); the results of own study:
Quick response to changes in market demand,
competition and consumers needs,
The reallocation of resources and reduction in
costs,
Fast innovation and R&D operations on the global
basis
Decreasing time frame to penetrate a new market
and reach more consumers,
Possibility of global sourcing to meet the demands
fast and focus more on core business activities
Facilitation of cooperation among experts and
recruitment of a qualified workforce,
Greater degree of freedom for workers and for
experts,
Expansion to global markets by means of
networking and rational positioning,
Online fulfillment of tasks and easy adaption to
change,
Online networking and better information flow in
the structure,
Possibility of commercialization of new products
and services over the Internet,
share of data and knowledge in inter-
organizational
Reduction of human mistakes
Lower market entry and foundation expenses.
Enterprises today are searching for the methods to
get a competitive advantage in the market and
constantly strengthen their competitiveness.
Virtualization of the resources acquisition processes
in enterprises in the aspect of the resource-based
theory represents a challenge which should be faced
and developed with the growing needs of the
enterprise or the expectations of business partners
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326
and customers. In the process of resources
acquisition, creation of the value added or formation
of a set of relationships with suppliers in order to get
a competitive edge is observed. The results obtained
in the study confirmed the great importance of
virtualization for the processes of relational
resources acquisition and information resources.
Mangers are also convinced that virtualization of
resources acquisition processes is essential for the
market results obtained by the enterprise and that it
positively affects the competitiveness of enterprises.
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