Competitive Advantage Through Corporate Communication

Abstract

Corporate Communication has started receiving significant attention by both academics and business in recent years. Current environmental drifts are forcing organizations to give greater importance to corporate communication. Effective corporate communication plays an essential role to make organizations become fast, flexible and competitive. It is an act of effectively conveying to a company’s stakeholders the corporate philosophy that the company regards as the ultimate of its corporate culture. While many organizations believe in the importance of corporate communication in creating a competitive advantage, this belief can still be considered as a complex issue because of the changing nature of organizations. This study is an attempt to identify the impact of corporate communication on the corporate image of an organization. It will explore the impact of the dimensions of globalization, new technology and corporate social responsiveness on corporate communication for creating a distinct corporate image of an organization. The constituent factors of the dimensions of globalization, new technology and corporate social responsiveness are identified to determine whether these constituent factors differ in their importance in the corporate communication of services and manufacturing organizations. Based on the same, hypotheses were generated and tested. The research design involved three extensive stages namely item generation, scale development and assessment of the scale after data collection. The study relied on survey method for data collection and responses were obtained by administering questionnaires to executives involved in executing corporate communication in services and manufacturing organizations. Respondents were identified primarily through convenience and later on through network of initial contacts. The analysis was done using statistical techniques such as factor analysis, linear regression analysis, ANOVA and multiple regression analysis. The results of the study are as follows: 1. A significant impact of corporate communication was observed on corporate image of the organization. 2. A significant impact of globalization was observed on corporate communication in services and manufacturing organizations to create a distinct corporate image of an organization. 3. A significant impact of new technology was observed on corporate communication in services and manufacturing organizations to create a distinct corporate image of an organization. 4. A significant impact of corporate social responsiveness was observed on corporate communication in services and manufacturing organizations to create a distinct corporate image of an organization. 5. Five constituent factors are identified for globalization namely Collaboration, Open Trade, Cross Cultural Communication, Innovative Technology and Quality Services which impact corporate communication in services and manufacturing organizations to create a distinct corporate image of an organization. 6. Three constituent factors are identified for new technology namely Prompt Services, Virtual Ability and Transformed Networks which impact corporate communication in services and manufacturing organizations to create a distinct corporate image of an organization. 7. Four constituent factors are identified for corporate social responsiveness namely Social Responsibility, Corporate Ethics, Corporate Virtue and Social Image which impacts corporate communication in services and manufacturing organizations to create a distinct corporate image of an organization. 8. No significant difference was observed in the role of corporate communication in services and manufacturing organizations to create a distinct corporate image of an organization. This denotes that corporate communication is important for corporate image of an organization irrespective of the industry. 9. The impact of Globalization was perceived higher in both services and manufacturing organization when compared to New Technology and Corporate Social Responsiveness. While, no significant difference was observed between services and manufacturing organizations on the dimension of Globalization. This denotes that Globalization is equally important for both services and manufacturing organizations. 10. No significant difference was observed between services and manufacturing organizations on the constituent factors for globalization namely Collaboration, Open Trade, Cross Cultural Communication, Innovative Technology and Quality Services. This denotes that all the constituent factors of globalization have an importance on corporate communication irrespective of industry type. 11. No significant difference was observed between services and manufacturing organizations on the constituent factor for new technology namely Prompt Services, Virtual Ability and Transformed Networks. This denotes that all the constituent factors of new technology have an importance on corporate communication irrespective of industry type. 12. No significant difference was observed between services and manufacturing organizations on the constituent factors for corporate social responsiveness namely Social Responsibility, Corporate Ethics, Corporate Virtue and Social Image. This denotes that all the constituent factors of corporate social responsiveness have an importance on corporate communication irrespective of industry type. 13. The constituent factors for globalization differed in their level of impact on corporate communication within services organizations. Collaboration received strongest weight in the model, followed by Quality Services and Innovative Technology. The excluded factors namely Open Trade and Cross Cultural Communication are not important within services organizations in predicting corporate communication. 14. The constituent factors for globalization differed in their level of impact within manufacturing organizations. Collaboration received strongest weight in the model followed by Quality Services, Cross Cultural Communication and Innovative Technology. The excluded factor namely Open Trade is not important within manufacturing organizations in predicting corporate communication. 15. The constituent factors for new technology differed in their level of impact on corporate communication within services organizations. Prompt Services received strongest weight in the model followed by Virtual Ability. The excluded factor namely Transformed Networks is not important within services organizations in predicting corporate communication. 16. The constituent factors for new technology differed in their level of impact on corporate communication within manufacturing organizations. Prompt Services received strongest weight in the model followed by Transformed Networks and Virtual Ability. 17. The constituent factors for corporate social responsiveness differed in their level of impact on corporate communication within services organizations. Social Responsibility received strongest weight in the model followed by Corporate Ethics and Social Image. The excluded factor Corporate Virtue is not important within services organizations in predicting corporate communication. 18. The constituent factors for corporate social responsiveness differed in their level of impact on corporate communication within manufacturing organizations. Social Responsibility received strongest weight in the model followed by Corporate Virtue. The excluded factors namely Corporate Ethics and Social Image are not important within manufacturing organizations in predicting corporate communication.

The results derived from the present research study are likely to be of interest to academicians and practitioners. The study presents insight into the concepts of corporate communication and corporate image in both service and manufacturing organizations. It offers an assessment of the impact of corporate communication on corporate image with reference to globalization, new technology and corporate social responsiveness as perceived by executives involved in executing corporate communication. The results are likely to provide inputs for management of corporate communication process in an organization. In a larger perspective it may guide to improve and implement effective corporate communication process that is likely to result a distinct corporate image for an organizations.