EFFECT OF HUMAN AND REPUTATIONAL CAPITAL ON SUSTAINABLE COMPETITIVE ADVANTAGE IN NIGERIA

82

INTRODUCTION

Company which has been developed into market leader is surely getting pressure from market such as: new comers, competition of new product, raw material that authorized by competitor etc. (Leonidou et al. 2011). The case is surely disturbing one of the company’s goal in gaining competitive advantage. It marks the importance of gaining competitive advantage in facing business competition. In gaining competitive advantage, another case that also becomes company’s attention recently is the changing of government regulation towards the specific industry that sometimes stresses and slows down the growth of company performance (Sheng et al. 2011). It seems that competitive advantage also has connection to company business performance. However, all obstacles must be faced by company in order to gain competitive advantage. The ability of a company to control the environmental factor also determines its success in creating competitive advantage. So companies are striving to make environment factor such as government regulation as supporter in gaining competitive advantage (Alkali and Isa 2012). The outside environment of company is a factor that also controls company’s reputation (Ljubojevic and Ljubojevic 2008). The connection between environmental factor, company’s reputation, competitive advantage and company’s performance becomes interesting to be examined, but what is more important is the connection between company’s reputation with competitive advantage (Vargas et al. 2015).

 

Company which grows and develops well historically will pass through the determined target. It indicates that the company is trusted by market because of having a good reputation (Kiousis 2007). The good reputation gives an opportunity to improve performance target, because of market trust on the company (Keh and Xie 2009). The growth of company performance surely cannot be separated from its human resource. Human resource factor is very important in gaining company’s reputation and it is the critical factor to gain competitive advantage. Leadership in human resource is a part of company’s reputation that has a role in gaining company’s reputation (Geller 2014). Beside human resource factor, a company also needs good management (Shamma 2012) and competency (Schwaiger 2004) in building its reputation. Low company reputation will be a constrain for a company in gaining competitive advantage. This case also applies to automatic

 

 

______________________________________

Contents