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Psychological Contributions to Competitive Business Process

Ployhart (2012) identifies two areas where contributions from industrial–organizational (I–O) psychologists may be particularly relevant to a psychology of competitive advantage—strategy formation and human capital management. These are two among a range of areas I–O psychologists could address in the influential model of competitive advantage developed by Michael Porter (1985). Figure 1 presents porter’s generic value chain model, which distinguishes between an organization’s primary value chain activities and its support activities. The primary value chain is the end-toend integration of processes that produce and deliver the organization’s products and services. According to Porter (1985, p. 33), ‘‘the value chain disaggregates a firm into its strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of differentiation.’’ In addition to contributing to human resource management, I urge I–O psychologists to consider making potentially unique contributions to improving the competitiveness of a primary value chain activity—operations. The effectiveness of an organization’s business processes for designing, producing, and delivering their products and services is frequently a strategic differentiator among competitors. This differentiator has proven especially