Can shared value achieve competitive advantage within the private sector? An Australian Study

Since the 1960s research streams such as business ethics, corporate social responsibility, stakeholder management and competitive advantage have received much attention in academia. More recently, an emergence of the concept of Creating Shared Value (CSV) - asserting that the competitiveness of a business and society are mutually dependent. This thesis seeks to examine whether CSV strategies influence competitive advantage?, and if so, how? A theoretical framework guides the research through a stakeholder perspective, that links CSV strategies with conditions of competitive advantage. The general research approach chosen is a sequential explanatory study - whereby quantitative data is collected and analysed to collect primary data, the results of which are used to inform the subsequent qualitative phase - hence, it is a mixed method approach. Twelve cases were selected, from leading firms across several industry groups in Australia, and in-depth interviews were undertaken. A further process of document analysis was performed to triangulate the findings to establish their validity. Findings indicated that a firms competitive advantage is enhanced by addressing social issues to reveal new business opportunities, and using its core competencies and resources (superior resources, unique capabilities, and solid relationships) through targeted activities to improve their competitive positioning. Competitive advantage is analysed in terms of Porter’s diamond model that consists of four components: factor conditions, demand conditions, support conditions and rivalry conditions (Porter1990). Notably, study revealed that stakeholder management and partnerships play a pivotal role in the process of value creation, as they can influence the success or demise of CSV implementations. Aligned interests and ‘win-win’ outcomes help to shape the competitiveness of a firm, by forging stronger relationships, shared success, and drivers that determine cost, differentiation and social progress