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The Influence of Triple Bottom Line on Strategic Positioning: An
Exploratory Case Study on Differentiation through Image
Hanan Alhaddi
1
1
Lawrence Tech University, MI, USA
Correspondence: Hanan Alhaddi, Lawrence Tech University, 21000 West Ten Mile Road, Southfield, MI,
48075-1058, USA.
Received: October 15, 2013 Accepted: January 23, 2014 Online Published: February 16, 2014
doi:10.5430/jms.v5n1p55 URL: http://dx.doi.org/10.5430/jms.v5n1p55
Abstract
Using grounded theory as a methodological approach, the influence of triple bottom line (TBL) was explored as an
emerging, yet substantially important phenomenon on strategic positioning through image differentiation. This study
makes a contribution to the sustainability scholarship (TBL as a subset of sustainability) and the marketing
scholarship by introducing and exploring the dynamics among TBL, strategic positioning, differentiation, and image.
This is done by presenting The Influence of TBL on Strategic Positioning Framework, which illustrates how these
four variables are connected. This work also contributes to strategic management, social investing, and human
resource scholarship by suggesting the positive impact of the
TBL Image
(a term defined and introduced in this study)
on developing long term strategies, talent acquisition and retention, and business growth within a global
organization.
Keywords:
Triple Bottom Line (TBL), sustainability, strategic positioning, image, differentiation, grounded theory,
qualitative research, case study
1. Introduction
Triple bottom line (TBL) is a sustainability-related construct that was coined by Elkington (1997). Driven by
sustainability, TBL provides a framework for measuring the performance of the business and the success of the
organization using the economic, social, and environmental lines. In essence, TBL expresses the expansion of the
environmental agenda in a way that integrates the economic and social lines (Elkington, 1997). In his definition of
TBL, Elkington used the terms profit, people, and the planet as the three lines. In this study, the economic, social,
and environmental lines referred to profit, people, and planet respectively. Similar to other sustainability-related
constructs like sustainable development and corporate social responsibility (CSR), TBL has shown a positive impact
on the organization (Goel, 2010). Because marketing is necessary for a strong long-term performance of the
organization (Lovette & MacDonald, 2005; Srivastava, Shervani, & Fahey, 1999), the interest was in exploring TBL
from a marketing perspective. Since prior research on TBL did not shed light on strategic positioning or
differentiation (from the marketing domain), it became very interesting to investigate how TBL influenced the
strategic positioning through differentiation within a global organization. Further, Kotler (2000) noted five tools for
differentiation: image, channel, personnel, services, and product. Image was selected as the differentiation tool and
the term
TBL Image
was introduced to refer to the image of the organization as a TBL-driven organization.
The literature contained many studies that showed the benefits of other sustainability-related constructs (Elkington,
1997; Holliday, 2001; Laszlo, 2008; Orlitzky, Schmidt, & Rynes, 2003; Podsakoff, Ahearne, & MacKenzie, 1997;
Savitz & Weber, 2006; Waddock & Graves, 1997). However, limited empirical research existed on TBL. Similarly,
marketing constructs like strategic positioning, differentiation, and image have also shown a positive effect on the
organization (Banker, Hu, Pavlou, and Luftman, 2011; Mazzarol and Soutar, 2008). Additionally, the literature
review revealed a number of studies that investigated the relationship between image as a construct and the
performance of the organization using different measures for the performance including shareholder value, stock
returns, and profitability (Roberts & Dowling, 2002; Smaiziene, 2008; Smith, Smith, & Wang, 2010).
The existing research showing the positive effect on TBL, strategic positioning, differentiation, and image is an
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important basis for this research. It provides the initial evidence and the theoretical platform necessary to build the
focus on exploring the influence of TBL on strategic positioning through image differentiation. Although scholarship
in the related fields discussed to some extent the relationship among strategic positioning, differentiation, and image,
very little existed on the dynamics among all three specifically with respect to TBL. In light of the limits of prior
research, several theoretical contributions are made through this research. The first theoretical contribution is the
demonstration of the dynamics connecting TBL, strategic position, differentiation, and image within a global
organization. The results of this study show that strategic positioning is influenced by TBL through strategic
priorities that were developed by the organization to ensure the long-term success of the organization. The strategic
priorities manifest the three lines of TBL. The degree of business alignment (between the TBL lines and the lines of
business in the organization) contributes to the influence of TBL on strategic positioning. In other words, in a
business group (of the organization) where the lines of product are directly tied to the objectives of TBL (e.g.,
designing and selling highly efficient energy systems is directly related to the environmental line of TBL); TBL is
more deeply integrated into the strategic plans of that group. This research makes a second theoretical contribution
by suggesting that in TBL driven/oriented organizations, the TBL approach is embedded in the strategic positioning
of the organization. In the context of this research, results reveal that when TBL is manifested in the culture, DNA,
fabric, and heritage of the organization, TBL is found to be embedded in the strategic positioning of the organization.
This research makes a third theoretical contribution by introducing the term
TBL Image
and shedding light on the
business advantages of that image in terms of business development, human resource, and social investing.
A key research was done by Heikkurinen (2010) on the image differentiation with respect to the environmental
responsibility of the organization. The author conducted a qualitative study in the Nordic hospitality industry to
understand how an organization can differentiate itself using an environmentally friendly image. The study showed
that the image enhanced the strategic position of the organization among the competitors. The enhancement was in
the form of cost savings, improved employee motivation, higher customer loyalty, and better reputation. However,
studies in relevant literature focused mainly on single image aspects (e.g., Heikkurinen focused on the
“environmental” image). This study, on the other hand, explored the business advantages of the
TBL Image
as an
image encompassing the economic, social, and environmental lines simultaneously. Additionally, the results show
that the
TBL Image
is a source of business growth in terms of seizing new marketing opportunities fostered by the
“good neighbor” relations in local communities. Lastly, the findings reveal that the
TBL Image
has a positive impact
on talent acquisition and retention and the attraction of social investors.
2. Theoretical Foundation
This research builds upon two foundational literatures. The first is the sustainability literature, which was reviewed to
understand empirical research on sustainability-related constructs including sustainable development, CSR, and TBL.
The second is research in the marketing domain scholarship, which focused on strategic positioning, differentiation,
and image.
2.1 Research on Sustainability-Related Constructs
Among the terms most commonly interchanged with sustainability is sustainable development, it was defined by
Brundtland (1987) as “the development in the economic and social areas that satisfy the needs of the existing
generation without compromising the capability of the future generations to satisfy their own needs” (p. 43).
Organizations need to understand the impact of sustainable development on their long-term survival and commitment
of executive leadership is necessary to the creation of the sustainable development environment (Stavros & Sprangel,
2008). An earlier construct that attracted the attention of organizations and is related to sustainable development is
corporate social responsibility (CSR). Byus, Deis, and Ouyang (2010) defined CSR as the voluntary actions taken by
the organization to improve the environmental or social conditions. Although CSR is not the focus of the literature
review, it was necessary to include it because of its close relation to sustainability and sustainable development
constructs. To illustrate further, Ebner and Baumgartner (2008) conducted an extended literature study on CSR and
sustainable development. The objective of their study was to survey the relevant literature in order to understand the
relationship between CSR and sustainable development. A key finding of the study showed a close relationship
between the two constructs. In some research cases, sustainable development was used as basis for CSR. In other
cases, the two constructs were used interchangeably.
Despite the lack of significant research on linking TBL to the performance of the organization, the literature
contained many studies that showed the benefits of other sustainability-related constructs and their positive impact
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on the corporate performance (Husted & Salazar, 2006; Laszlo, 2008; Moneva & Ortas, 2010; Russo & Fouts, 1997;
Waddock & Graves, 1997). Other studies focused on the relationship between the corporate social performance and
the financial performances. For example, a study was done by Waddock, and Graves (1997) found corporate social
performance to be positively related to the financial performance of the organization. Another study by Husted and
Salazar (2006) showed that, if planned strategically, CSR can improve the profitability of the organization. As
previously mentioned, the majority of research in the sustainability scholarship focuses on other
sustainability-related constructs, little significant research was found on TBL.
2.2 Research on Strategic Positioning and Differentiation
Perhaps among the most recognized definitions of positioning is the one provided by Ries and Trout (1972) in which
the authors pointed that positioning is not what is done to the product, but what it is done to the mind of the prospect.
In other words, it is the creation of the position (of the product) in the prospect’s mind. In a quantitative study to
analyze the relationship between strategic positioning and organization performance, Banker, Hu, Pavlou, and
Luftman (2011) showed that a positive relationship between strategic positioning and performance of the
organization. Other studies by Mazzarol and Soutar (2008) and Brooksbank, Kirby and Gillian (1992) showed
similar results.
In terms of differentiation, Sharp and Dawes (2001) review of the relevant literature resulted in a collection of related
terms and notions that were used to refer to differentiation. These terms included differentiated positioning,
differentiation strategy, and product differentiation. An earlier study by Gal-Or (1987) found a positive relationship
between strategic differentiation and the organization performance from a market share perspective. Differentiation
and positioning are interrelated but not identical. In some research, differentiation depended on positioning where a
differentiation strategy is the result of establishing a desired position in the market (Sharp & Dawes, 2001). In other
research, differentiation was referred to as an enabler for reaching a distinctive position in the market (Zineldin &
Bredenlow, 2001). Further, Kotler (2000) noted five tools for strategic differentiation: image, channel, personnel,
services, and product. Dickson’s definition suggested that image features can be used as one of the factors used to
differentiate the product from its competitors (Sharp& Dawes, 2001).
2.3 Research Integrating TBL, Strategic Positioning, Differentiation, and Image
The literature review did not reveal significant research linking TBL to strategic positioning/differentiation. However,
a number of studies were done on other sustainability-related constructs like Corporate Social Responsibility (CSR)
and positioning. Other studies were done on CSR and differentiation. For example, the quantitative study conducted
by Becker-Olsen, Taylor, Hill, and Yalcinkaya (2011) found that based on global brand positioning theory (which
suggests that consumer perception is positively associated with the global positioning of the brand); CSR efforts and
consumer perceptions are positively linked. In terms of linking TBL to image, literature did not reveal a significant
research in this area; however, some research has extended sustainability-related activities to the enhanced
organization image (Bibri, 2008; Chen, 2008; Heikkurinen, 2010; Phelan-Ribera, 2011). The literature review did not
reveal significant studies on TBL and image. Therefore, the lack of research in this area created the need for further
investigation, which was done using this case study on Johnson Controls. This study established the term
TBL Image
to refer to the image of the organization as a TBL-focused organization. In this study,
TBL Image
is the integration of
TBL into the image of Johnson Controls.
3. Methods
The qualitative research approach for this study was justified by the exploratory purpose of the study in
understanding TBL as an emerging phenomenon and in discovering its connection to strategic positioning.
Qualitative approach is best suited when a phenomenon has not been explored yet, which demonstrates the value of
qualitative research in enabling the researcher to develop constructs (Marshall & Rossman, 2006). This study used a
grounded theory approach to gain a deeper understanding of how TBL influences the strategic positioning though
image differentiation within a global organization. The discovery of grounded theory as a strategy for qualitative
research is credited to Glaser and Strauss (1967). Grounded in data, Glaser and Strauss suggested that “generating
grounded theory is a way of arriving at theory suited to its supposed uses” (p.3). Building on this position, grounded
theory is derived from data through a multistep process. The process consists of iterations of inferring categories,
reviewing the interferences against data, and then revisiting the inferred categories (Lee, 1999). This approach was
applicable because the construct of using TBL in the strategic positioning was still not well understood. The
grounded theory process presented by Charmaz (2006) was followed in this study (see Table 1).
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Table 1. The grounded theory process
Source: Adapted from Charmaz (2006)
3.1 Unit of Analysis and Characteristics of Participants
The unit of analysis was Johnson Control, a Fortune 500 organization that adopted the TBL approach. Johnson
Controls is a global leader and supplier for Building Efficiency, Power Solutions, and Automotive Experience.
Utilizing the TBL approach, Johnson Controls promotes economic, social, and environmental practices that benefit
the local communities, shareholders, customers, and employees. Research participants were identified using
purposeful sampling. Participants (employees of the organization) were divided into groups based on the
organizational rank, level of responsibility in strategic planning, and expertise in TBL and sustainability. Therefore,
the list of participants included vice presidents of the three groups (Building Efficiency, Automotive Experience, and
Power Solutions), directors of strategic planning, strategic planning managers, vice presidents and managers in
sustainability, vice presidents and directors of public affairs and communications, and all members of the Global
Environment and Sustainability Council (GESC). A summary of the descriptive attributes of participants is shown in
Table 2. Participants were selected using purposeful, snowball, and theoretical sampling. A total of 23 in-depth
interviews were conducted via conference calls. Purposeful sampling generated 20 participants, snowball sampling
generated one participant, and theoretical sampling generated two participants.
Grounded Theory Process by
Charmaz (2006)
Process of this Study
Formulation
of
research
problem
and
research
questions
The main research question: how does TBL influence strategic positioning within
a global organization? Research sub-questions:
1-What does TBL mean to the organization?
2-How does the organization use TBL to differentiate its strategic position in the
market?
3-How does the organization incorporate TBL into its image?
Generation of initial coding
and data collection
Raw data generated 260 double space pages. A total of 1,327 open codes were
generated. Data collection was done using feedback from 23 in-depth interviews
with participants from Johnson Controls. Data also obtained from printed and
electronic media sources.
Drafting initial memos and
raising codes to tentative
categories
Seven initial memos were written that captured the impressions and reflection of
the researcher to main constructs.
Data collection and focused
coding
Data collection continued. Open codes were developed into 38 categories using
axial coding.
Writing advanced memos and
refining
of
conceptual
categories
Twenty advanced memos were written to capture and refine specific categories.
Theoretical
sampling
(seeking specific new data)
Theoretical sampling was used to obtain new and specific data related to social
investors and shareholders.
Converting certain categories
into theoretical constructs and
further refining of constructs
Categories developed through axial coding were converted into theoretical
constructs.
Sorting memos
Final count of memos was 27. Memos were sorted according to the relative
categories to reinforce/confirm the researcher’s understanding of the theoretical
constructs.
Integrating
memos
and
diagramming constructs
Memos were integrated into the data analysis. Developed constructs were
diagrammed (shown in Figure 4.2).
Writing the first draft
First draft of dissertation was written.
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Table 2. Descriptive attributes of participants
Initially, purposeful sampling was used to allow for insightful inquiry. This helped the researcher to understand the
phenomenon in-depth. Key employees from GESC and strategic planning leadership at Johnson Controls were
purposefully selected for their relevance of their expertise to the research topics. They were “illuminative participants
Title
Group
Tenure
Functional Area
Executive Y/N
Location
Vice President
Power Solutions
[6-10]
Strategy
Y
NA
Director
Automotive
Experience
[16-20]
TBL
Y
NA
Director
Corporate
[1-5]
Communications
Y
NA
Director
Building
Efficiency
[6-10]
TBL
Y
NA
Director
Power Solutions
[1-5]
TBL
N
NA
Vice President
Building
Efficiency
[11-15]
Corp Affairs
Y
SA
Director
Power Solutions
[11-15]
Strategy
Y
NA
Vice President
Building
Efficiency
[11-15]
Strategy/TBL
Y
NA
Director
Corporate
[6-10]
Strategy
N
NA
Vice President
Corporate
[6-10]
Strategy
Y
NA
Vice President
Building
Efficiency
[6-10]
Strategy
Y
NA
Vice President
Corporate
[6-10]
Government
Relations
Y
EU
Director
Corporate
[1-5]
Global Affairs
Y
Global
Vice President
Building
Efficiency
[6-10]
Strategy
Y
Global
Manager
Building
Efficiency
[1-5]
Relations
N
NA
Director
Corporate
[1-5]
Investors Relations
N
Global
Director
Corporate
[11-15]
TBL
Y
Global
Vice President
Corporate
[16-20]
Government
Relations
Y
NA
Director
Building
Efficiency E
[1-5]
Government
Relations
N
EU
Vice President
Automotive
Experience
[6-10]
Communications
Y
EU
Manager
Building
Efficiency
[1-5]
Strategy
N
NA
Director
Building
Efficiency
[1-5]
Strategy
N
Asia
Vice President
Automotive
Experience
[6-10]
Strategy
Y
EU
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who will offer useful manifestation of the phenomenon of interest” (Patton, 2002, p.40). The initial list of
participants included 54 employees. Due to workload, out of the 54 employees that were contacted, 20 were
available to participate in the study at the end of purposeful sampling. Snowball sampling was used to locate
information-rich key participants (Patton, 2002). Participants in the research were asked to recommend potential
candidates that are suitable for the study. “By asking a number of people who else to talk with, the snowball gets
bigger” (p.237). Snowball sampling identified one additional participant that was added to the list for a total of 21 at
the end of snowball sampling.
Once the conceptual categories were constructed from the data, theoretical sampling was used to obtain further data
for the purpose of explicating the categories (Charmaz, 2006). Theoretical sampling was used because it “allows the
researcher to discover the constructs that are relevant to this problem and population, and allows the researchers to
explore the constructs in-depth” (Corbin & Strauss, 2008, p.145). Constructs related to talent acquisition and
investors emerged from the analysis. In order to explore the constructs in-depth, theoretical sampling was used to add
two more participants to the study.
3.2 Interview Guide
A total of 23 in-depth semi-structured interviews were conducted with individuals at Johnson Controls in strategic
planning, public affairs, communications, and GESC functions. After an executive summary of the research was sent
out to the participants, a sample of the interview guide followed via email. The interview questions were designed
with the aim of answering the research questions. Interviews were conducted via conference calling. Each interview
lasted from 30 minutes to 60 minutes. Interview questions were designed in light of the research questions (main and
sub questions) and to ensure alignment between the two. Table 3 shows the alignment between the research questions
and the interview questions.
Table 3. Descriptive attributes of participants
In addition to the in-depth interviews, data collection included document reviews. Collecting more data from other
sources was necessary for documenting events and conflicts, simplifying the manipulation and categorization of the
data, and quantifying the data as required for the statistical analysis (Marshall & Rossman, 2006). Documents
Research Question
Interview Question
How does TBL influence strategic
positioning
within
a
global
organization? (main question)
-To be inductively answered through data analysis and document
reviews
What
does
TBL
mean
to
the
organization?
(sub-question one)
-What is your understanding of TBL? Is there a system for TBL in
place at Johnson Controls? Can you give me an example of how
Johnson Controls uses the TBL as a competitive advantage?
-Why do you think Johnson Controls emphasizes social responsibility,
environmental leadership, and economic prosperity in the work that
we do? How important do you think this emphasis is to leadership of
the company? Do you think it is a top priority? Why or why not?
How does the organization incorporate
TBL into the image?
(sub-question two)
-How do you describe the image of Johnson Controls? Can you
describe a vivid picture of the “image” we are trying to project to both
our internal and external stakeholders?
-How important do you think it is for Johnson Controls to be viewed
as a “TBL driven organization”? Why?
How does Johnson Controls associate its “image” with TBL? Can you
give me an example?
How does the organization use TBL
image to differentiate its strategic
position in the market?
(sub-question three)
-How does Johnson Controls strategically position itself in the
market? In other words, what are the positioning strategies at Johnson
Controls as an organization?
-What are some of the differentiation strategies used at Johnson
Controls to achieve the desired strategic position in the market?
-How is “TBL image” used in the strategic positioning of Johnson
Controls? Can you give me an example?
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included financial statements, annual financial reports, sustainability reports, and submissions to governmental
agencies.
3.3 Data Analysis
Interviews were tape-recorded and transcribed. Transcription generated about 260 pages. The researcher reviewed
notes from each interview and wrote a total of 27 memos. Different forms of data (written notes during the
interviews, memos, and documents) were cross-referenced for patterns, relationships, confirming, and disconfirming
data. The data were coded and grounded theory techniques were used to analyze them. The goal was to expand
knowledge on TBL as an emerging phenomenon and to build new theory around the influence of TBL on strategic
positioning through image differentiation. At a point in the process, data analysis was done simultaneously with data
collection. Data collection and coding continued until theoretical saturation was achieved. Yin (1999) refers to
theoretical saturation as the unlikelihood of additional data to provide new knowledge or information as a result of
the sequential process of data collection, coding, and interpreting. Similarly, Corbin and Strauss (2008) define
theoretical saturation as “the point in analysis when all categories are well developed in terms of properties,
dimensions, and variations” (p. 263). When it was realized that no new constructs were being generated, the
simultaneous process of data collection and data analysis concluded.
Continuously sorting the codes into several configurations and connecting categories enabled the researcher to gain
deeper understanding of the data. Guided by grounded theory, three types of coding were used in this study: open,
axial, and selective coding. Open coding refers to the unrestricted identification of categories that are naturally
occurring from the data. Initially, many codes were used to organize and assign the empirical data logically until
coherent structure was achieved. Open coding and axial coding went hand in hand. Although the data were broken
apart to identify constructs (open coding), they were put back together by relating those constructs into categories
(axial coding). Finally, categories were connected using selective coding. During selective coding, the categories
were organized in terms of their potential to fit the data within them. Starting with the most powerful (important)
categories, iterations of data fitting took place until all the data have been categorized. Selective coding was used to
develop a story that connects the categories through integration.
Analysis strategies included 1) unique case orientation, 2) inductive analysis and creative synthesis, and 3) holistic
perspective. The selection of unique case orientation was driven by the assumption that implementing the TBL
approach at Johnson Controls is an individual case and a first level of analysis. Inductive analysis and creative
synthesis aimed toward exploring themes or patterns through analytical principles (Patton, 2002) and creating the
typology(s) based on the gathered data (Marshall & Rossman, 2006). The selection of this procedure was driven by
the need to explore themes or patterns in order to discover the interrelationships and level of integration between the
defined attributes. Holistic perspective is a strategy characterized by the need to view the phenomenon as a complex
system (Patton, 2002). The selection of this strategy was mainly driven by the fact that TBL as a
sustainability-related construct was a complex construct that mandated the balance of several factors (economic,
social, and environmental) in order for the planet to continually exist (Aras & Crowther, 2009).
Data analysis of document (document reviews) was used to further explore the constructs as they emerged from the
coding process as well as to find evidence and support. The documents used in the analysis included business and
sustainability reports, Form 10-K report, GRI report, the 10-year Marker document, the Empire State Building case
study, the Johnson Controls headquarters case study, the Philanthropic Report, and the UNGC Report. For example,
when exploring the meaning of TBL, respondents indicated the economic, social, and environmental lines. To
confirm, the relevant documents were reviewed. It was found that the definition of TBL by the respondents was
aligned with the Johnson Controls definition as shown in the annual business and sustainability report. In the report,
Johnson Controls communicated the central massage to stakeholders, which was seeking growth in every dimension;
economic prosperity, social responsibility, and environmental leadership (Johnson Controls, 2012).
4. Findings
The findings show how TBL, strategic positioning, differentiation, and image are interrelated within a global
organization. As shown on the upper left side of Figure 1, the research found that in a TBL-driven organization, TBL
as an approach is embedded in the organization.
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4.2 TBL Is Embedded in the Organization
Among the participants’ first thoughts of TBL in Johnson Controls is that it is embedded in the organization by being
part of its culture, DNA, fabric, and heritage. A link between TBL and the culture suggests that incorporating the
TBL approach is a result of having an organizational culture that is aligned with the TBL construct. For example,
Johnson Controls was founded on the idea of designing and manufacturing energy-saving products. Additionally,
community involvement and charitable contributions are part of the organization identity. Therefore, the elements
(environmental and social) of TBL are interlinked with the organization’s identity. Similar to this definition,
respondents indicated that the reason for emphasizing the TBL dimensions is because it is part of the organization’s
DNA and fabric; this is illustrated in the following response:
RESP 13: I think a lot of it goes back to the heritage of the organization. I think at the end of the day if you
look at organizations and we are one that is 127 years old… the reason we continue to proposer as we had in
the last century is certain things that define what Johnson Controls is. It is part of our DNA, and I think all
great organizations have that DNA. Regardless to what business we become engaged in, there is always
something that makes Johnson Controls standout from other organizations; that makes it unique about this
place. I think a lot of that manifests itself in those dimensions. We are a company that has given dividends
to shareholders for the last 127 years. We are a business that started with the idea of sustainability.
In this quote, this participant, like many of the ones interviewed, linked TBL [in the context of sustainability] to the
heritage of the organization. The participants indicated that that TBL has become part of the DNA and the fabric of
the organization.
4.3 TBL Is Integrated into the Strategic Priorities
The study shows that TBL is embedded in the strategies of the organization as part of the 10-year marker, which is a
set of nine strategic priorities that were developed to ensure the long-term success of the company. These priorities
are integrity, innovation, sustainability, customer satisfaction, continuous improvement, global growth, employee
engagement and leadership, quality, and shareholder value. Analysis of the strategic priorities showed that TBL is
embedded in three strategic priorities that reflect the economic, social, and environmental lines of TBL. The
economic line of TBL is reflected in the global growth strategic priority, which states that the organization will thrive
in the global economy and will seize opportunities to ensure long term success. The social line of TBL is reflected in
the employee engagement and leadership strategic priority, which states that as the organization grows, its employees
will also grow through engagement and involvement in communities to mirror the organization’s global markets and
population. Lastly, the environmental line of TBL is reflected in the sustainability strategic priority, which expresses
the organization’s thrust toward environmental sustainability through the design and manufacturing of environmental
friendly products and services. In line with the findings from the analysis, respondents indicated that TBL [and its
image] is embedded in the strategic positioning in Johnson Controls through the strategic priorities as illustrated in
the following response:
RESP 1: The
TBL Image
is used in the strategic positioning, because it is embedded deeply into each of our
business in terms of how we run our business and how we operate our business, as well as in the offerings
that we provide to our customers. Our strategic plans incorporate our vision around how to be more
sustainable, how to deliver better sustainability outcomes for our customers, so I would say that it is
profoundly embedded in our strategies.
This particular participant indicated that TBL [its image] is integrated into the strategic priorities and plans of the
organization. As this example excerpt demonstrates, TBL is embedded in the strategic positioning of the organization
by being integrated into the strategic priorities.
4.4 Integrating TBL into Strategic Positioning Is Influenced by Business Alignment
Another key category that re-emerged from using the TBL in the strategic positioning is the influence of the line of
business. Data from interviews and documents reviews revealed that the extent of integrating TBL into the strategic
positioning is influenced by the degree of business alignment (between the objectives of TBL and the line of
products/services offered by the each of the three groups). Where the lines of products and services are directly
related to the elements of TBL, the
TBL Image
is strongly reflected. For example, review of the each of the business
group sites, clearly showed a stronger TBL and sustainability image in Building Efficiency than in Automotive
Experience group. This is driven by the direct link between TBL elements and the products and services offered by
the Building Efficiency group. Similarly, respondents indicated that the extent of reflecting the
TBL Image
differed
based on the business group as illustrated in the following response:
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RESP 2: I would say that we use the
TBL Image
in our strategic positioning. We do it differently based on
the activity.
Based on the review, respondents in Building Efficiency indicated the strongest connection between
TBL
Image
and strategic positioning, followed by participants from the Power Solutions, and then participants from the
Automotive Experience. The sample response below explains this clearly:
RESP 3: I think Building Efficiency uses the
TBL Image
because it is aligned with the value proposition of
the business in terms of providing solution for energy efficiency savings, low operating expenses of
buildings. So there is a direct link between what Building Efficiency can sell (and TBL).
As the business propositions of Building Efficiency are the most closely related to the objectives of TBL, Building
Efficiency places the greatest emphasis on TBL when compared to the other business groups.
4.5 Strategic Positioning and Differentiation
Through this research, it was seen that through Strategic Priorities and Thought Leadership, the organization
differentiates itself to achieve its strategic position. Respondents indicated that among the nine strategic priorities,
Global Growth and Integrity are two main differentiators for the organization.
Global Growth.
Perhaps the most straightforward way to demonstrate the importance of growth to Johnson Controls
is by using it as the central message to all stakeholders as shown on the Annual Business and Sustainability Report
(Johnson Controls, 2012 b). To frame global growth as a strategic priority, Johnson Controls aims to be recognized as
a global growth company, and that it will thrive in the global economy and will seize growth opportunities (Johnson
Controls, 2012e). Additionally, global growth is manifested in the global footprint, which is evidenced by the
presence of the Johnson Controls operations around the globe emerged as one of the differentiation factors as it
enables the organization to be everywhere the customer requires (Johnson Controls, 2012d). Respondents indicated
that the global growth and global footprint are two aspects that contribute to the differentiation of Johnson Controls
as illustrated in the following responses:
RESP 8: The extent of the impact of our business solution was not narrowly defined in terms of here is
how much we saved money; it was here is what we did to advance our customers’ goals. That included the
TBL kind of thinking. Even if that wasn’t what our customers initially had thought they were going to get
from us, this is what they get from us; value in all domains. We are bringing you: better employee
experiences, we are bringing you safer work environments; we are bringing you energy savings,
environmental improvements, and cost savings. When we create our value proposition in that way, it
creates a tremendous rebel effect about how our clients are going to view what they are looking for in this
environment. So it becomes a differentiator, because we are the ones talking about how you achieve that
kind of TBL results.
RESP 10: What differentiate us are our global footprint, our low cost position, and our quality. We enjoy
manufacturing aspects that enable us to drive our cost down and at the same time invest in hundreds of
projects throughout the past years that are focused on quality and continuous improvement.
Integrity.
One of the core values for long-term success, integrity is among the critical constructs in Johnson Controls.
Although corporate documents did not explicitly link integrity as a differentiation strategy, integrity plays an integral
role in the success of the organization, which is demonstrated by being the first core value on the 10-year marker
(Johnson Controls, 2012e). One participant indicated that integrity is a differentiator for Johnson Controls.
RESP 7: I think that most common and most significant element that bridges the business units is actually
the focus and discussions around integrity. Something that we bring to the equation is a large global
footprint (#1) and integrity (#2) in all of our operations and doings.
Thought Leadership.
Thought leadership refers to the championing of new ideas guided by innovation (McCrimmon,
2011). Therefore, “thought leaders inspire leadership; they ignite imaginations, explode old myths, and illuminate
paths to the future that others can follow” (Butler, 2012, p. 1). Similarly, Butler (2012) used a definition for thought
leaders offered by Monash University suggesting that what differentiates thought leaders from others is “the
recognition of being at the forefront of innovation, and cutting-edge thinking, and having the confidence to promote
or share those ideas as actionable distilled insights for business improvement” (p.7). Participants indicated that
Thought Leadership is a differentiator for the organization.
RESP 2: We are active as thought leader and that differentiates us. We do research with customers where we
interview business leaders on what they are doing and how they are evaluating energy efficient projects.
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4.6 Differentiation through Image
This research shows that image is closely related to differentiation and strategic positioning. This connection is
expressed in re-emerging categories that linked image to strategic positioning and differentiation, particularly in the
Thought Leadership area. In terms of using the image as a tool for differentiation, participants indicated that image is
used to differentiate the organization in three areas: strategic priorities (global growth and integrity), recognition, and
thought leadership. In other words, the organization utilizes its image as a 1) globally growing organization that
conducts business with integrity, 2) one that is recognized for its sustainability achievements and integrity, and 3)
thought leader to differentiate itself from other organizations. Interviewees have also linked the image of the thought
leader to strategic positioning directly. Nine respondents indicated that the image of Johnson Controls reflects a
thought leader that drives innovation as illustrated in the following responses:
RESP 22: They also perceive us as leader in our industry, as a thought leader that is constantly innovating
and certainly bringing value to our shareholders.
RESP 2: We are active as thought leader and that differentiates us. We do research with customers where we
interview business leaders on what they are doing and how they are evaluating energy efficient projects.
4.7 Thought Leadership in Innovation
The re-emerging of Thought Leadership as a category suggests its significance to differentiation and strategic
positioning in a TBL-driven/oriented organization. Document analysis and responses from interviewees revealed that
Thought Leadership is linked to innovation particularly in the sustainability area. Innovation is one of the five
corporate values and one of the nine strategic priorities. As a differentiator, the organization states that “Innovation
will set us apart from the competition and will be a significant driver of our global growth and profitability”,
(Johnson Controls, 2012e, p.1). Johnson Controls drives innovation through Thought Leadership. The organization
provides thought leadership in terms of continuing “to look for ways to enhance Johnson Controls’ reputation as a
leader in sustainability and as a thought leader on key issues, such as energy efficiency, vehicle electrification and
battery recycling” (Johnson Controls, 2012b, p. 46).
4.8 TBL Orientation Is a Source of Differentiation
Aligned with the participants’ responses, Laszlo and Zhexembayeva (2011) have indicated that “companies as
diverse as Johnson Controls …are pursuing differentiation strategies with sustainability performance in their core
activities” (p.80). The authors added that sustainability contributes the organization’s ability to differentiate in one of
two ways: by expanding the product line to include sustainability-driven products and by improving the existing
differentiation attributes (like redefining image, quality, and stakeholder relations). The literature review revealed
other studies that showed the relationship between other sustainability-related constructs and differentiation. As an
emerged category, TBL orientation had two properties: social line and environmental line. Respondents indicated that
the TBL orientation allows Johnson Controls to differentiate itself in the respective markets. The following are
illustrative excerpts:
RESP 1: It [TBL] has been very important to us as a lever for differentiation and it has been important for us
in terms of differentiating us as a partner with prospective customers because I really think our customers
view Johnson Controls as being different than others when it comes to this space.
RESP 22: So it becomes a differentiator, because we are the ones talking about how you achieve that kind of
TBL results.
Social line
.
Respondents indicated that involvement in the local communities in which the organization conducts
business in was among the differentiator factors for Johnson Controls from other players in the market.
RESP 15: It [TBL orientation] is a competitive advantage. We have good competitors that make similar
products to similar customer. With all things being equal (price, quality, footprint, delivery, technology), a
company would rather do business with someone who has is more sustainable, treats its employees well,
they are involved in their communities. So it is the soft things that we believe is a differentiator when you
are in a nose-to-nose competition.
RESP 12: Our ability to engage in dialogues with our communities about how big we are and also how great
we are (in terms of our respect to TBL) is an important differentiator for us.
4.9 Associating the Organization Image with TBL; Creating the TBL Image
Johnson Controls associates its image with TBL through incorporating it into the strategic priorities, communication,
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inclusion in the sustainability indices, iconic projects, and offerings. Incorporating TBL into the strategic priorities of
the organization is a way of demonstrating that Johnson Controls believes in TBL.
Strategic Priorities
.
A review of the strategic priorities and corporate values revealed that TBL is weaved into the
global growth, employee engagement, and environmental sustainability to reflect the economic, social, and
environmental lines respectively. Respondents pointed out the use of the economic, social, and environmental
elements as a slogan on the business and sustainability report is one of the most straightforward associations with
TBL. Similarly, TBL is also weaved into the corporate values. Johnson Controls has five corporate values; integrity,
customer satisfaction, employee engagement, innovation, and sustainability. Johnson Controls values have
strengthened the organization, shaped its culture and guided behavior on the job for more than 125 years. These
values also support the strategic priorities as listed in the 10-year marker. With focus on employee engagement and
sustainability, the definitions of the values were analyzed to understand the presence of TBL. Employee engagement
as a corporate value reflects the social line of TBL with respect to promoting diversity and the human capital
development. Sustainability as a corporate value reflects the environmental line with respect to improving the
environment. Ten respondents indicated that one way of associating the image of Johnson Controls with TBL is
through incorporating TBL into the strategic priorities (10-year marker) and the corporate values. This is illustrated
by the following responses:
RESP 16: If you look at the five values we have in the corporation: (integrity, customer satisfaction,
employee engagement, innovation, and sustainability). So it is one of the five key values that we talk about,
and when we go into what sustainability means to us, it is the triple bottom line. It’s in that high level value
set that we have of who we are as an organization.
RESP 1: Business and sustainability report is absolutely used to associate our image with TBL. Financially,
our investors know that we are in the business of making money. We report on our revenue and profit on our
return, we have very specific metrics to report our progress and commitment toward our communities.
Communication
.
Additionally, participants referred to advertising and communication messages to clients and
customers as a way to associate the image of the organization with TBL. Johnson Controls advertises its
accomplishments using iconic projects in publications including
The Wall Street Journal
,
Financial Times, and The
Economist.
The organization also publishes an internal online newsletter called “Efficiency Now”. The newsletter
provides insight and information about major topics in Building Efficiency and presents and showcases case studies
of how Johnson Controls helps its clients be innovators (Johnson Controls, 2012). Respondents indicated the use of
communications and advertising to associate the image of Johnson Controls with TBL as illustrated by the following
response:
RESP 8: In the marketing sense: we do the how-to-make-your-buildings work campaign. Part of the Wall
Street advertising under the triple bottom line wins. We talk about saving energy; reducing waste, helping
people live more comfortable, improve the quality of hospital care. The entire series of communications
efforts was specifically to specifically talk about TBL outcomes, not to just say, we saved money.
Messaging always included all the other elements (never just saving money). We were trying to
communicate how Johnson Controls is a successful business. But when it came to how we communicate it,
it was very clear that we had to communicate all the results.
Inclusion in the Sustainability Indices
. Inclusion in the sustainability indices is another way to associate the image
of Johnson Controls with sustainability and TBL. In the sustainability space, some of the key sustainability indices
the organization is included in are: Dow Jones Sustainability Indexes: World & North America, FTSE4Good Index
Series, KLD Indexes, NASDAQ OMX CRD Global Sustainability Index, and STOXX Global ESG Leaders Indices.
Iconic Projects.
The organization also associates its image with TBL through a series of actions that can be divided
into iconic projects and offerings. Examples of iconic projects include the upgrading of the Empire State Building
and the establishment of the Johnson Controls Headquarters in Milwaukee, WI as a showcase for sustainability.
Examples of associating the organization’s image with TBL through offerings include the wide spectrum of products
and services offered by Johnson Controls that target the increase in energy efficiency, battery recycling, utilization of
sustainable material, and decrease in the environmental footprint. Six respondents indicated the use of iconic projects
as a way to associate the image of Johnson Controls with TBL as illustrated in the following responses:
RESP 6: We advertise what we did with Empire State Building. We saved a tremendous amount of energy
on a national icon which has social value as well, because we helped turn an old building into a future
building. A building that demonstrates what you can do in terms of energy efficiency with bold and existing
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architecture.
RESP 2: The Empire State Building is another example because it is an iconic building known around the
world. It is something that allows us to bring attention to our products and services that we as a company
bring to customers like the owner of the Empire State Building. It is something that grabs the attention of
potential future customers and building owners. It is a great attention getter.
Offerings
.
Respondents indicated that among the straightforward ways to associate the image of Johnson Controls
with TBL is through the products and services being offered in the market. Through the incorporation of the TBL
elements into the products and services, Johnson Controls helps its customers and clients meet their economic, social,
and environmental demands as well. The organization does that by offering quality products, services, and solutions
that optimize energy and operational efficiencies of buildings, lead-acid automotive batteries and advanced batteries
for hybrid and electric vehicles, and interior systems for automobiles. Eleven respondents indicated that the
incorporation of the TBL elements in the offerings (products and services) is a way of associating the image of
Johnson Controls with TBL as illustrated in the following responses:
RESP 1: The most profound thing that we do is that we link it to our offerings. It shapes the products and
services that we offer our customers and the type of organization we want to be. It motives and drives
everything that we do.
RESP 22: We are part of the broader set of economic decisions, that we are a part of the community, that our
products and services can create better environmental outcomes.
4.10 Business Advantages Drive the Influence of TBL on Strategic Positioning
Participants were asked about the importance of the
TBL Image
in Johnson Controls. Responses linked the
importance of the
TBL Image
to business advantages. The re-emergence of the source for business advantage
category underscores the relation between the
TBL Image
and the emphasis of TBL in Johnson Controls. Three
properties characterized the category: business growth, talent, and shareholder platform.
Business growth.
A re-emerging category, business growth was suggested again by seven respondents as being
stimulated by the
TBL Image
, particularly in energy efficiency space as illustrated in the following responses:
RESP 3: It will come out in regards to the 10 year marker. It is not a core focus area. There is a recent study
that said that there is $800B of wasted energy in buildings around the plant, we can easily jump onto that,
and say, see…that’s all what we are about.
RESP 22: Companies that are perceived as green, sustainable with a TBL are companies people want to do
business with and have in their communities. These are all things that benefit the business long term. Our
image is that a company that adheres to the principles of TBL.
Talent.
The
TBL Image
is important in terms of attracting new talent to the organization. Johnson Controls has
associated the social line of TBL (through talent acquisition and retention) with the building of shareholder value
over the long run. The organization has indicated that attracting, motivating, and retaining highly qualified global
management team who will drive a superior performance will build a shareholder value in the long-term (Johnson
Controls, 2012g).
Four respondents pointed out that younger generations (new talents) are more attracted to organizations that support
TBL as illustrated in the following response:
RESP 6: I also believe that the image is important because it helps us recruit good people and keep good
people as long term employees. I think demographically that the younger people are tend to be more
environmentally and socially aware and as they are thinking about career choices, I think they place a higher
weight on sustainability than people like me who graduated in the 1980’s. People tend to look for
companies to work that have good results in this area. I think that will be increasingly important, not even
now but in the future as we are coming up at a time where technical resources are and will be retiring. We
will be fighting more and more for the best engineering and technical talents and I think it helps to helps to
have that image when we are recruiting. It also helps with retention of people.
Shareholder platform
.
Five responses established a link between the
TBL Image
and the performance of the
organization. An official in Building Efficiency suggested that – contingent upon further research – there might be an
association between the
TBL Image
and an increased shareholder value. Social investors are defined as investors who
apply non-financial characteristics to the investment decision making process. The non-financial characteristics
relate the investor’s value system to social and environmental considerations. Also known as social responsibility
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investing (SRI), social investors encourage organizations to improve their practices in the social and environmental
areas (US SIF, 2012). Respondents indicated that the
TBL Image
helps in attracting investors as illustrated in the
following response:
RESP 15: From an investor’s standpoint, there is an increasing pool of investors who are gravitating toward
companies that have a good TBL story. The good news about that is that those investors tend to value those
companies higher, than, say auto investors. You can drive the stock prices up by having a good TBL story
because green investors place higher value. Despite its small margin, SRI is rapidly growing at about 13%
annually as far as the dollars invested in these funds. Last year, some of the big name investors like Fidelity
and J.P Morgan started SRI/Green funds and this is changing the nature of the conversation, now you are
starting to get people’s attention. This is a real sign that this is becoming a mainstream opportunity. The
DJSI and FTSE4Good indices (and we are included in 12 of them), those firms have helped the social
responsibility investors to find information about companies that pass their screening. Being on these
indices makes it a lot easier to sell to the social responsibility investors.
5. Discussion
This research explores the influence of TBL on strategic positioning through image differentiation. It was found that
in a TBL-driven/oriented organization, TBL is embedded in the strategic positioning of the organization. The
research also found that the TBL orientation and
TBL Image
are differentiators that enable the organization to
achieve its strategic position. A framework that illustrates the interactions among TBL, strategic positioning,
differentiation, and image within a global organization was developed. This framework demonstrates how the
“embedded’ TBL influences the strategic positioning by being constructed into the strategic priorities that are
developed to ensure the long-term success of the organization. The economic, social, and environmental lines of TBL
are manifested in the Global Growth, Employee Engagement, and Sustainability strategic priorities respectively. This
is driven by the fact that TBL has become part of the culture and DNA of the organization. Another reason for
including the TBL elements in the strategic priorities are the business advantages that come with TBL.
The findings of the research also suggest that in order to establish the
TBL Image
, the organization utilizes several
avenues to showcase its achievements in the TBL (and sustainability) area. The organization associates its image
with TBL through integrating it into the strategic positioning, communication, and lines of products and services it
offers to the market. The research also shows that Thought Leadership as a key differentiator through image that
enables the organization to achieve its strategic position, particularly, in the innovation area. The findings contribute
to the sustainability and marketing literature by adding new insight into TBL in terms of how it is connected to
strategic positioning through image differentiation. The findings also contribute to the Human Resource literature by
showing the impact of TBL on talent acquisition and retention, particularly, young talent. The implications of the
findings are discussed in the following sections.
5.1 Theoretical Contributions and Implications
Grounded theory technique was used to create a deeper conceptual understanding of how TBL influences the
strategic positioning within a global organization. Prior scholarship by Goel (2010) on TBL and by Heikkurinen
(2010) on image differentiation have been extended by building new theoretical propositions about the
TBL Image
as
a differentiator that enables the organization to achieve its strategic position. This work sheds the light on TBL as a
structured framework driven by sustainability and how it influences the strategic positioning within a global
organization. This work also shows how the business advantages of TBL and the business alignment (between the
TBL elements and the business objectives of the organization) influence the strategic positioning. Additionally, this
study shows Thought Leadership as a differentiator, particularly, in the innovation area. This work makes several
theoretical contributions, which are described in depth next.
First, discovering that TBL is embedded (in the TBL-driven/oriented organization) suggests that incorporating the
TBL approach into the organization is a result of having an organizational culture that is aligned with the TBL
construct. For example, Johnson Controls was founded on the idea of saving energy from the earliest products.
Additionally, community involvement and charitable contributions are part of the organization identity. Therefore,
the elements of TBL are interlinked with the organization’s identity. In a similar notion, Laszlo and Zhexembayeva
(2011) referred to embedded sustainability as the incorporation of the sustainability elements into the core business
of the company in a way that strengthens the company’s strategy. Embedded sustainability is invisible, yet has a huge
impact on the employee motivation and loyalty creation in the supply chain and within consumers. The authors
describe organizations that embed sustainability into their strategies as “unlike the majority of companies that simply
bolt on
sustainability to their existing strategy and processes…these pioneering businesses
embed
sustainability into
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the very DNA of their businesses, thus deeply transforming their strategy and operations for enduring value creation”
(p. 100). This study extends existing literature by focusing on TBL and hence, suggesting that in
TBL-driven/oriented organizations, TBL is embedded in the strategic positioning of the organization.
Second, several studies showed the business advantages of other sustainability-related constructs like sustainable
development and CSR in terms of talent acquisition and retention. For example, Husted and Salazar (2006)
suggested that when corporate social performance is approached strategically, it drives performance improvements.
The authors suggested that the attraction of highly qualified employees as a result of the corporate social
performance reduces the cost structure in the organization and hence, improves the performance of the organization.
Other studies suggested that sustainability improved employee retention and recruitment process ultimately resulting
in enhanced productivity (Aguilera, Rupp, Williams, & Ganapathi, 2007; Russo & Founts, 1997; Turban & Greening,
1997). Although most studies focused on either the social or environmental aspects of sustainability, very few shed
light on TBL, particularly with respect to young talent. This study established the term
TBL Image
and shows that it
enables the organization to attract and retain talent, especially the younger talent as they are more attracted to
organizations that participate in the TBL space.
Third, another area for capturing the TBL business advantage is through improving shareholder value. Participants
have indicated that another reason for emphasizing the TBL approach within Johnson Controls is to contribute to
optimization of shareholder value. Participants have indicated that the TBL approach enables Johnson Controls to
optimize the shareholder value by considering the three areas that surround the business. Although the literature did
not reveal significant empirical research on TBL and shareholder value, evidence exist on the positive relationship
between shareholder value and other sustainability-related constructs. For example, Martin and Petty (2009) showed
that when practiced strategically, corporate social responsibility (CSR) can maximize the shareholder value resulting
in organization doing well by doing good. Yet, there is no empirical evidence on showing the relationship between
TBL and shareholder value, therefore, this study suggests that TBL helps the organization gain a business advantage
as a contributor to the optimization of shareholder value.
Fourth, respondents indicated that the
TBL Image
drives business growth in two ways. First by being perceived as a
leader in the respective market, the organization can benefit from the image by securing new business opportunities.
Second by being viewed as sustainable organizations with TBL focus, customers become attracted to the
organization and local communities welcome the new partner. By being a welcomed partner (and neighbor), the
organization can foster new business growth through seizing business opportunities in local communities. For
example, retrofitting and upgrading of local buildings (schools, universities, etc.) expands the business growth of the
organization. Similarly, the literature review revealed a number of studies that showed a positive relationship
between image as a construct and the performance of the organization using different measures for the performance
including shareholder value, stock returns, and profitability (Roberts & Dowling, 2002; Smaiziene, 2008; Smith,
Smith, & Wang, 2010). Additional studies showed that corporate reputation has a positive influence on attracting new
customers, retaining existing customers through increased loyalty, reducing the customer’s perceived risk in the
product, consequently improving the likelihood of purchasing the product, and attracting new business partners
(Dalton & Croft, 2003; Dowling, 2001; Fombrun, 1996; Helm, 2007). Although the literature did not reveal a
significant research that links TBL to the image, some research has established a relationship between other
sustainability-related constructs (like CSR) and corporate image. For example, Bibri (2008) looked at the
relationship between CSR/sustainability and corporate reputation. Unlike existing literature, this study showed that
the
TBL Image
has a positive influence on the business growth on the organization.
Fifth, aligned with the participants’ responses, Laszlo and Zhexembayeva (2011) have indicated that “companies as
diverse as Johnson Controls …are pursuing differentiation strategies with sustainability performance in their core
activities” (p.80). The authors added that sustainability contributes the organization’s ability to differentiate in one of
two ways: by expanding the product line to include sustainability-driven products and by improving the existing
differentiation attributes (like redefining image, quality, and stakeholder relations). The authors suggested that
corporate social performance allows the organization to differentiate itself in the industry. Further, Laszlo and
Zhexembayeva (2011) suggested that sustainability can weaken or strengthen the strategic position of the
organization by driving the organization to perform existing activities differently (like recycling water used in
manufacturing) and to perform different activities (like providing a water recycling service to a customer). According
to the authors, embedded sustainability is a source for differentiation that can improve the strategic position of the
organization by strengthening the cost leadership and the product differentiation. Building on existing literature and
extending it to the TBL area, this study suggests that TBL contributes to the differentiation of the organization in the
respective market.
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5.2 Practical Implications
Practitioners who are interested in studying how TBL interacts with strategic positioning through image
differentiation will benefit from this study as the Influence of TBL on Strategic Positioning Framework provides
them with a tool to use when thinking about how to further the integration of TBL into the organization. The study
also provides an insight into the impact of business alignment on TBL. A clearer insight will guide the organization
through the utilization of exiting offerings to deepen the integration of TBL into the organization (and into the
business model ultimately); a deeper integration can be translated to more investments in TBL practices.
The Influence of TBL on Strategic Positioning Framework is a helpful tool for practitioners in strategic planning
functions in understanding the interactions among TBL, strategic positioning, differentiation, and image. The insight
into how TBL can ultimately have a positive impact on the organization helps practitioners in developing long-term
strategies that aim to improve the performance of the organization. As the framework and the set of propositions
provide insight into performance improvement through employee engagement and talent acquisition, practitioners in
human resources can benefit from the framework as they have better understanding of the influence of the
TBL
Image
on recruiting and retaining talent in the organization as well as enhancing employee engagement, which both
ultimately influence the performance of the organization.
6. Limitations and Direction for Future Research
The main limitation of the study is related to the inability to generalize. Due to the case study approach and the
single unit of analysis used in the research, the results of the study might not be immediately applicable to other
organizations across other industries. To explain further, this study was conducted in a global organization that
consists of three main sectors. Each sector was influenced by TBL differently based on the manufacturing processes
and business practices in that sector. Therefore, the heterogeneous structure of the organization added some
uniqueness that does not allow for generalization.
For future research, nature of the qualitative research in this study generates a recommendation for future research to
further develop the Influence of TBL of Strategic Positioning Framework into a model that can be tested using
quantitative research methodology. The intent of the quantitative design is to establish statistical evidence by creating
hypotheses developed from the propositions presented in this study. For example, one of the propositions suggested
that the
TBL Image
has a positive influence on the organization through talent acquisition and retention. By using a
quantitative research methodology, this proposition can be developed into a hypothesis that can be tested. Second,
extending the scope of the study by exploring the relationship across other organizations and industries in order to
determine the extent of generalization of the research results. The single case study approach used in this research
was done on one diverse global organization. Although the organization consisted of three distinct business groups, it
would be interesting to know if the results of the research apply to other organizations and industries.
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