Improving value-creation ability, internal operations efficiency, & competitive advantage of firms by the adoption of a new technology: Four case-studies

Abstract

The purpose of this paper is to explore how a firm's value-creation ability, internal operation efficiency and competitive advantage can be improved by adoption of a new technology. This work draws on four case-studies of public Israeli firms, traded on international courses, and operating in global markets. The firms are Comverse, Ormat Technologies, Tower Semiconductor, and Radvision. They are engaged in a wide range of activities, between various poles (consumer markets vs. institutional / industrial markets, and product vs. service). Comverse (www.comverse.com) is a leading provider of software and systems that enable multimedia network-based enhanced services. Ormat Technologies (www.Ormat.com) is a leading company providing solutions for geothermal power, recovered energy generation, and remote power. Tower Semiconductor (www.towersemi.com) manufactures integrated circuits with unique geometry and provides complementary technical services. Radvision (www.radvision.com) is a communications technology accommodator that enhances collaboration with video conferencing locally and globally. All four firms face tough competition in a dynamic environment, both nationally and internationally. It was found that firms adopting a new technology are able to improve one or more of the three necessary conditions for profit creation. Profit will be higher, the stronger the company's value-creation ability, the more efficient its internal operations, and the greater its competitive advantage.