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Scientific Progress in Strategic Management: The Case of the Resource-Based View
Abstract
Does the RBV represent a case of scientific progress? And has it emerged as the dominant approach to the analysis of competitive advantage for this reason? Conventional criteria for scientific progress, notably those of the growth of knowledge literature, are not particularly helpful for understanding this. Instead, it is argued that in order to understand why the RBV is an instance of scientific progress, we should begin from the notion that reduction is at the heart of progress in science, and that many scientists implicitly or explicitly hold this view. The RBV is a case of scientific progress because it identified theoretical mechanisms at levels lower than those that were usually investigated in strategy research prior to the RBV. Unfortunately, the micro-emphasis of the RBV gave way during the 1990s to more aggregative modes of theorizing (i.e., the capabilities approach). Thus, the RBV represents an "unfinished revolution" as there is still considerable potential to dig deeper in the deep structure of competitive advantage.
... The model of the optimal allocation of enterprise funds helps find the best balance between profits and costs. The model assists management in making decisions about the flow of resources and determining what investments are needed to maximize the income of an enterprise (Foss, 2007;Morrow et al. 2007). ...
... There are different methods for optimizing the distribution of enterprise resources but the most common are those based on mathematical modeling and data analysis. For example, this list comprises linear and dynamic programming methods, simulation methods, sensitivity analysis methods, etc. (Foss, 2007;Domashchenko and Finogenova, 2010). ...
"The article examines peculiarities of the influence of geopolitics and geopolitical conflicts on territorial communities in Ukraine in a comparative and historical context. Particular attention is paid to the economic consequences of such influence. The importance of taking into account factors of the environment created by realities of the modern world the hybrid peace is emphasized. It is shown that the processes of internationalization and globalization are accompanied by processes of decentralization and autonomation, determining the inevitability of the influence of geopolitical conflicts specifically on territorial communities."
... Dynamic capabilities, resource-based view, routines, ambidexterity, context specificity, causal ambiguity Lippman and Rumelt, 2003a;2003b, Foss, 20032005, Felin andFoss, 2005;Gavetti, 2005;Teece, 2007, Gottschalg and Zollo, 2007, Abell et al. 2008Felin and Foss, 2009;Laamanen and Wallin, 2009;Salvato, 2009;Abell et al. 2010;Vromen, 2010;Foss, 2010;2010b;Eisenhardt et al. 2010;Litchfield and Gentry, 2010;Volberda et al. 2010;Lichtenthaler et al. 2010;Cabiddu, 2010, Aime et al. 2010, Laureiro-Martinez et al. 2010, Foss et al., 2010 Knowledge 2 Knowledge, knowledge governance approach, knowledge management, knowledge economy, knowledge based production, knowledge sharing, knowledge processes, knowledge ıntegration, imperfect ınformation Felin and Hesterly, 2007;Foss, 2007;Felin et al. 2009, Foss, 2009Foss, 2010;Foss et al. 2010;Litchfield and Gentry, 2010;Volberda et al. 2010;Lichtenthaler et al. 2010, Campbell et al. 2010 Organizational Level ...
... Organizational behavior, organizational search, theory of the firm, firm boundaries, organizational structure, hierarchy, organizational justice, organizational economics (transaction costs, property rights), absorptive capacity, competitive advantage, performance, payments perspective; rent, economic profit Lippman and Rumelt, 2003a;2003b;Foss, 2003;Foss, 2005;Gavetti, 2005;Foss, 2007;Nickerson and Zenger, 2008;Abell et al. 2008, Litchfield andGentry, 2010;Volberda et al. 2010;Eisenhardt et al. 2010, Harrison et al. 2010, Aime et al. 2010 Interorganizational Level Network Network Pozzebon, 2004;Cabiddu, 2010 ...
The aim of this study was to investigate the theories and research topics that guided the micro-foundations of the strategic management discipline between the years 2000-2020 and to make suggestions about the future of micro-foundations research. In the study, 122 articles were analyzed by the structured literature review method. In the research, qualitative content analyses were used and an inductive analysis was performed. As a result of the analyses, theories were classified based on the disciplines. In research topics, sub-categories were determined by bringing together the similar topics. Then, research topics are coded from subcategories to basic categories. The findings indicated that the micro-foundations of strategic management were dominated by behavioral theory of the firm, evolutionary theories of economic change and Coleman's social theory between the years 2000-2010. In addition to these three theories, the effects of actor-social network theories, theory of practice, behavioral decision theory, goal framing theory, organizational learning theory, upper echelon theory and transactive memory system were present between the years 2011-2020. According to the findings, variables such as cognition, motivation, human resources management, human capital, managers and individual variables were investigated in the micro-foundations of macro-strategic phenomena at the levels of capabilities, organization and network between the years 2000-2010. Between the years 2011-2020, macro-phenomena such as context, acquisition and mergers were also included in micro-foundations research, in addition to macro-strategic phenomena in the previous period. The topics such as psychology and entrepreneurship were included within the scope of micro-phenomena discussed in the studies in the previous period between the years 2011-2020.
... Leading international financial corporations have developed new models for assessing the credit risk of a portfolio using differential methods at different levels of complexity (Redhead, Hughes, 2005;Morrow et al., 2007;Foss, 2007). Such models have received worldwide recognition and have become industry standards: CreditMetrics (J.P. Morgan), CreditRisk+ (Credit Suisse), Portfolio Manager (KMV), and Credit Portfolio View (McKinsey & Co., Inc.) are the most well-known models. ...
The study considers the role of risk assessment of credit activity in the era of the digital economy. The purpose of the study is to identify the main patterns that determine the features of risk assessment in business as the main element contributing to the achievement of economic security of an organization and to perform a comparative analysis of risk assessment and management methods in the context of digitalization. The authors discuss the advantages and disadvantages of various methods of assessing credit risks and analyze credit risk assessment models. Various methods of risk assessment and management are used in modern economic analysis. The most effective ways to reduce risk in the context of instability of the economic and political situation in Russia include the method of scenarios and the method of hierarchy analysis, as well as diversification, i.e. the distribution of risks between several business participants. When a portfolio has a fragmented asset structure, a bottom-up approach is used to assess potential credit risk.
... Organizationalfactors that are determined by the development of the organization of production, labor and management, as well as the choice of the incorporation form; and Socio-economicfactors associated with the staff, their level of competence, and attitude to property and working conditions. The following company types are defined based on the reasons for the insolvency appearance [11], [12]: Bankrupt enterprise that operates in a balanced economy is an enterprise that failed to meet its obligations for subjective reasons; and Bankrupt enterprise that operates in a mass bankruptcy economy is an enterprise that is not suitable for solving economic problems in the future. ...
The article is devoted to the relevant topic which is assessment of the insolvency (bankruptcy) of enterprises. The instability of a complex socioeconomic system is intensifying in the market economy, which is difficult to fully study and understand. Modern business is being run in a highly competitive environment. Adequate decision-making requires a deep, comprehensive assessment of the situation and a reliable forecast of events. A firm that has managed to correctly forecast the situation receives more profit than a firm that abstained from forecasting. The firm that made the wrong forecast loses the most. The main types of models for assessment of the bankruptcy probability for enterprises and the factors influencing them in the course of making decisions have been considered in this article, and the bankruptcy probability for Megafon PJSC based on various models has been studied. A comparative analysis of the models for assessment of the bankruptcy probability for enterprises has been conducted. The methods of cognition, retrospective and documentary analysis, as well as synthesis, generalization, and systematization were used in the article.
... The subjective factors include the following: Material and technicalfactors associated with the engineering and technology development, introduction of scientific discoveries into the company's operation, and the development of subjects of labor; Organizationalfactors that are determined by the development of the organization of production, labor and management, as well as the choice of the incorporation form; and Socio-economicfactors associated with the staff, their level of competence, and attitude to property and working conditions. The following company types are defined based on the reasons for the insolvency appearance [14], [15]: Bankrupt enterprise that operates in a balanced economy is an enterprise that failed to meet its obligations for subjective reasons; and Bankrupt enterprise that operates in a mass bankruptcy economy is an enterprise that is not suitable for solving economic problems in the future. ...
The article is devoted to the relevant topic which is assessment of the insolvency (bankruptcy) of enterprises. The instability of a complex socioeconomic system is intensifying in the market economy, which is difficult to fully study and understand. Modern business is being run in a highly competitive environment. Adequate decision-making requires a deep, comprehensive assessment of the situation and a reliable forecast of events. A firm that has managed to correctly forecast the situation receives more profit than a firm that abstained from forecasting. The firm that made the wrong forecast loses the most. The main types of models for assessment of the bankruptcy probability for enterprises and the factors influencing them in the course of making decisions have been considered in this article, and the bankruptcy probability for Megafon PJSC based on various models has been studied. A comparative analysis of the models for assessment of the bankruptcy probability for enterprises has been conducted. The methods of cognition, retrospective and documentary analysis, as well as synthesis, generalization, and systematization were used in the article.
... This approach is actively used both in public institutions and private businesses. The purpose of risk management is to reduce the scale of risk and take protective measures (Domashchenko and Finogenova, 2010;Foss, 2007;Makarenko, 2020;Morrow et al., 2007;Tereshchenko, 2019;Vakhitov, 2018). ...
This article attempts to study the role of emergency risk management in the era of the digital economy. The main purpose of the article is to identify the major patterns that determine the features of risk assessment in business as the main element contributing to the achievement of economic security of the organization, as well as to carry out a comparative analysis of risk assessment and management methods in emergencies. The modern economic analysis employs various risk management methods. The most effective ways to reduce risk in conditions of the economic and political instability in Russia are the method of scenarios and the method of hierarchy analysis, as well as diversification, i.e. the distribution of risks between several business participants. Emergencies may have a different character depending on the nature of the adverse event. This article deals with natural and man-made emergency dangers.
... Within this context, IC emerged as a mid-range theory within the broader resource-based view -RBV (Foss, 2007;Reed et al., 2006) 3 . Interestingly, RBV scientists have started narrowing it down, with the development of a micro-foundations approach. ...
In this paper we review the main evolution of intellectual capital (IC) research after 20 years from the first article published by Leif Edvinsson on the topic. In developing the paper, we highlight the main concerns that were stimulating the debate at the time. The paper employs a conceptual review starting from the questions raised in one of the first papers about IC. While 20 years ago, the debate was about the starting of the knowledge economy, the search for increasing economic value and IC research was at the beginning. Today we face a different situation. The knowledge economy represents a consolidated concept, and a new paradigm is emerging based on an economy in which sustainability and worth represent the core values. Organisations are employing new business models to create value that also embraces a sustainable perspective. New research streams on IC are emerging.
... When penetrating a computer system, these programs block files and encrypt them to obtaining further a ransom for the return of information. After paying the ransom, a certain percentage of defrauded firms do not get their data (Foss, 2005;Kiseleva and Simonovich, 2014;Avilkina, 2020). ...
The present article attempts to study the role of financial risk management in the digital economy era. The main purpose of the article is to identify the main patterns that determine the features of risk assessment in business as the main element contributing to the achievement of economic security of the organization, as well as to carry out a comparative analysis of risk assessment and risk management methods in the context of digitalization. The contemporary economic analysis employs various risk management methods. Digitalization also creates new risks, most of which are related to cybercrime and fraud on the Internet. The most effective ways to reduce risk in the context of instability of the economic and political situation in Russia are the scenarios method and the method of analyzing hierarchies, as well as diversification, i.e. the distribution of risks among several business participants. The article discusses various types of economic risks, risk analysis, and assessment methods, as well as risk neutralizing strategies.
... Next, consider the analysis of unit gross margin (Gubanov, 2014;Foss, 2007;Kleiner, 2014). ...
The paper explores the topical subject of modeling enterprise operations with the use of marginal analysis. The market economy is characterised by the heightened instability of the complex socioeconomic system, which is almost impossible to fully grasp and study. Businesses face intense competition. Adequate managerial decision-making requires in-depth comprehensive assessments of the situation and reliable forecasting. A firm that makes correct forecasts gains additional profit compared to one abstaining from forecasting. Meanwhile, a firm making an incorrect forecast loses most of all. Managerial decisions often rely on break-even analysis, i. e., marginal analysis. This paper explores examples where even in cases when disadvantageous choices are made (as shown by break-even analysis), the setting can still lead to positive results, i. e., at least a moderate profit, through the validation of the managerial decision by further analysis and calculations. The methods of enquiry, retrospective and document analysis, as well as synthesis, generalisation and systematisation were used.
... Capital valuation is undoubtedly one of the most important issues which need to be solved by companies during ROI studies. Many scientists, such as A. Damodaran, W. Sharpe, I. Blank and others [5,6,7,8,9,10] put a lot of effort into solving this issue. However, some of its aspects, unfortunately, still remain underinvestigated. ...
The definition of the essence of an object of management in economics is an indispensable component of professional risk management. Since the national risk management theory is just being formed, the need to find a clear and comprehensive definition for the notion "risks" is especially topical. Capital valuation is one of the most important issues, which needs to be solved by companies during ROI studies. This article makes an attempt to study the role of risk management in the implementation of investment projects. The main purpose of this article is to identify the main regularities which determine the peculiarities of risk assessment in business, being the key element facilitating the organization of investment projects. The objectives have been as follows: to review the basic concepts of risk management; to study its components in business; to reflect the system and risk management principles, and to carry out risk assessment; to consider the main kinds of risks in the business area.The article describes various types of investment and project risks, risk analysis methods for investment projects, as well as efficiency indicators of investment projects, and provides an analysis of risk factors and uncertainties during the development of investment projects. The peculiarities of the practical use of project risks’ analysis methods have been studied. Risk assessment methods for an investment project help evaluate its feasibility, the time within which it will start being profitable, as well as the probabilistic volume of its future profits. Investment project valuation models have been analyzed, in particular, the CAPM model for emerging capital markets. The DCF method has been studied, being the base for assessing the attractiveness of business in general and a company's investment project in particular.
... Risk can be reduced through preventive measures, such as installation of alerting and diagnostics systems, maintenance of the current state, staff training and retraining, modernization of fixed assets and replacement of obsolete equipment with more reliable items, etc. Any area of risk management requires certain resources, which raises the problem of optimal funds allocation among different methods of managing risks and objects included in the system, whose risks are taken into account [6][7][8][9]. Different level of damage caused by the elements of the system, as well as different efficiency of investing in risk management should be taken into account when allocating funds. ...
An attempt to study the role of risk management from the standpoint of an entrepreneur is made in the article. The main goal of this article is to find the key patterns describing the features of risk assessment in business as the main element contributing to achieving the economic safety for an organization and to developing a mathematical model of optimal funds allocation for risk management using the dynamic programming techniques. The methods of cognition, retrospective and documentary analysis, as well as synthesis, generalization, and systematization were used in this article. Various risk management methods are used in the modern economic analysis. Diversification, or risk sharing among several business agents, is the most efficient way to reduce risk in the context of instability of the economic and political situation in Russia. For citing: Kiseleva I.A., Sadovnikova N.A., Gasparian M.S., Korneev D.G., Sysoev N.A. Model of optimal funds allocation with due consideration for risk minimization // International Journal of Innovative Technology and Exploring Engineering, 2019. – V. 8. – № 6. – pp. 469-472. URL: https://elibrary.ru/item.asp?id=37251968 & https://www.ijitee.org/wp-content/uploads/papers/v8i6/E3261038519.pdf
... In light of the above, it may be argued that the competence-based view focuses on competitive advantage from different firm level perspectives. While the resource-based view since the 1990's has been mostly focused on competitive capabilities in relation to the market (macro-level) orientation (Foss, 2007), the competence-based approach and (later) the knowledge-based view rely more on market-oriented thinking (micro-level) and offers a more broad perspective on strategy development based on internal processes by the complex and dynamic interplay of human assets, resources and competences. Yet, such competences also include external competences in term of networks of firms and blending of own firm capabilities with other partner firms (Freiling, 2004) Building upon the resource-and competence-based (knowledge-based) view, a new conception of firm strategy has recently been suggested by means of the resource-advantage theory of the firm (e.g. ...
... Today firms not only perform transactions, but also, through conscious selection of type of cooperative relationship and partner, choose the form and scope of strategic investments in the development of their products, strengthening of services, or expansion of their capabilities and potential. Their success depends on their ability to acquire and make appropriate use of various, often specific or complementary, resources [15]. Becoming more and more open to their environment, and wishing to achieve market success, they have to take up challenges relating to the creation of a unique organizational ecosystem, a strategic architecture composed of deliberately chosen partners which at the appropriate time support the attainment of specified strategic goals. ...
Partnering both opens up and blurs the boundaries between organizations, and even expands them. Firms ought to shape their cooperation with other entities in accordance with their changing needs. A particular group of such entities is competitors. The question therefore arises whether partnering in relations with competitors (coopetition) is suitable for all organization? This paper attempts to show what is involved in the adoption by small and medium-sized enterprises (SMEs) of a partnering approach to extending their business base through coopetition, how much it is needed, and how far it is possible in practice. Analysis of data from the literature is supplemented with the results of studies among SMEs taking such an approach. Results of studies conducted on a group of 251 Polish SMEs indicate that partnering approach to the process of extending the business base through cooperation with competitors is appropriate for small organizations. SMEs cope reasonably, and their effectiveness in such activity is systematically increasing. SMEs are " maturing " to open up to their environment and be increasingly active and enterprising in extending their potential. This provides them with opportunities to increase their innovativeness, flexibility and competitiveness.
... Ordóñez, Peteraf y Ventura (2007) afirman que más que cualquier otra perspectiva teórica en el campo de la administración estratégica, la RBT ha llamado la atención de académicos y practitioners; e incluyen entre sus variantes las capacidades dinámicas, la Knowledge-based view (kBV, por sus siglas o perspectiva basada en conocimiento) y la perspectiva relacional (Dyer y Singh, 1998), variantes a las que Foss (2007) denomina "modos agregativos". ...
En años recientes, las alianzas estratégicas han llamado considerablemente la atención del campo estratégico. Una alianza estratégica puede ser vista como un término medio entre el mercado y la organización jerárquica. Este artículo examina la teoría de acceso al conocimiento de Grant y Baden-Fuller, quienes argumentan que el desarrollo de una efectiva teoría basada en el conocimiento de la formación de las alianzas se ha visto inhibida por una visión simplista de ellas como medios para el aprendizaje organizacional; sin embargo, la principal ventaja de las alianzas sobre las firmas y los mercados es el acceso más que la adquisición de conocimiento.
... Industry organization analysis and resource-based approaches are as "two systems of belief", each stressing its own belief about the factors more powerful in strategy formulation process. The popularity of resource-based approach, and according to some authors even perceived as the dominant approach to strategic management (Foss, 2005, p.2), probably lies in the sociological embeddedness of this approach in the "context". One of the reasons could be that it dug deeper into the "deep structure" of competitive advantage than previous approaches (Foss, 2005, p. 3) and managed to explain some of the phenomena that could not be explained before. ...
This doctoral dissertation deals with two quite self-understanding concepts of strategic
management - strategic thinking and schools of strategic management and their impact on the
financial results in large Croatian firms.
Strategic management school is a concept that represents the dominant paradigm of the top
managers’ point of view on the process of strategic management. I suggested a new
classification of the schools of strategic management based on two criteria- the role of the top
manager in the process and time horizon: Classical school, Environmental school,
Competitive school and Contemporary school. First, each school is individually presented and
supported by ideas and contributions of different leading researchers and the critical overview
of these contributions. Strategic thinking is an under-researched concept that is at the very
heart of strategic management. No matter how many methods, tools, and techniques top
managers use, none of them could replace strategic thinking. Due to the difficulties in
articulating the cognitive character of strategic thinking, it is very elusive to define, measure,
train or learn how to think strategically.
The empirical research recognized three distinctive ways of the strategic thinking capability:
HEAR, FIRM and PORT. The most suitable way of developing strategic thinking capability
among large Croatian firms are HEAR, according to ROA or FIRM, according to ROE. The
most suitable approach to the process of strategic management according to ROA, is the
Competitive-Contemporary school, and according to ROE the Environmental school. The
construct HEAR has direct and positive impact on ROE; PORT has direct and negative
impact whereas FIRM has no direct impact on the value of ROE. The Classical school of
strategic management has a negative impact on ROE while the Environmental and
Competitive-Contemporary schools have no direct impact on ROE at all.
The world of management, and strategic management in specific, is perceived as a world of
paradoxes and contradictions but actually, I believe it is a very neat and orderly system of
principles and rules yet unknown to our senses, perception, and knowledge.
... De acordo com McCloskey (apud Mahoney;Pandian, 1992) boa ciência é feita com bons diálogos entre pessoas com boas idéias. Assim, fazendo uma revisão de 10 anos da área, Barney (2001) esclarece que parte da maturidade da literatura estratégica é devida a postura de abertura e diálogo, sendo talvez por isso a VBR considerada como a principal abordagem estratégica em uso (Foss, 2005). Todavia, Bertero, Vasconcelos e Binder (2003) observam que há pouca familiaridade dos nossos pesquisadores brasileiros com estratégias do tipo VBR e outras de cunho econômico (excluindo Porter); o que iria contra o mainstream de pesquisas estratégicas em nível mundial conforme levantamento de Hafsi e Thomas (2005). ...
Resumo: O Ritz Hotel de Porto Alegre (RS) é pesquisado com o intuito de tentar um melhor entendimento sobre como os recursos e capacidades possibilitam certas organizações hoteleiras competir com sucesso den-tro da faixa de estratégia escolhida. A pesquisa é qualitativa, descritiva, com entrevistas semi -estruturadas e observação não participante. Foram realizadas sete entrevistas no total, sendo entrevistado o dono e todos os funcionários do hotel. As principais conclusões encontradas são que os recursos de capital humano, bem como a cultura organizacional destacam -se como fatores competitivos e operacionais. Além disso, a rede de contatos formada por antigos moradores, a internet com suas plataformas de redes sociais, assim como órgãos públicos de difusão da rede hoteleira auxiliam na renovação de seus hóspedes. Abstract: This paper tries to elucidate how the Ritz Hotel in Porto Alegre (Brazil) compete successfully with its resources and capabilities within the range of the chosen strategy. The research is qualitative, descrip-tive with semi -structured interviews and non -participant observation. All the employees and the owner were interviewed. Among the main conclusions reached were the importance of human capital and organizational culture as competitive and operational resources. In addition, the network of contacts formed by former resi-dents, the internet as well as government agencies contribute in the renovation of hotel guests.
In a recent research by Strategy and Leadership Journal, majority of experts have chosen Strategic Management as the most applicable management tool. However, there are experts who believe that deploying strategic management models in governmental organizations is not as appropriate as in profitable ones due to clear differences between these two types of organizations. This study aims at developing a process model for strategy development in governmental organizations, under uncertainty and based on network governance paradigm by use ofqualitative analysis and Interpretive Structural Modeling (ISM) methodology. ISM methodology includes following steps: Identifying and ranking of the set of variables in the system, defining contextual relations between variables, identifying the inter-relationships among the variables according to defined contextualrelations (SSIM), constructing Adjacency Matrix and Reachability Matrix, partitioning SSIM into different levels, forming the hierarchies of the variables and finally making the process model.Samples of study are taken from expert opinions in a non-random purposive manner and the criteria for sample selection include theoretical knowledge, practical experience, willingness and ability to participate in research and availability.Research is developed and depicted in the form of a prescriptive process model. This process model shows the governmental organizations a step-by-step roadmap for developing strategy under uncertainty and based on network governance paradigm. This model relies on a sub-process for sequencing (precedence- succedence relations) of variables.
The global experience of leading companies indicates that successful development of a firm – in particular, of a consulting firm – and improvement of its performance are impossible without a properly formulated strategy as a set of measures aimed at achieving a certain goal. The relevance of this article lies in the fact that operation of any enterprise is accompanied by risks, which necessitates formation and application of a business strategy within the competences of various departments. Attempts to research and develop the business strategy for a consulting company are made in this article. The current businesses are run in a highly competitive environment. Taking adequate decisions requires a deep, comprehensive assessment of the situation and a reliable forecast of the outcome. The key stages of developing a business strategy for a consulting company are identified, possible alternatives to the strategic choice are defined, measures to monitor the implementation of strategic decisions are found, and foreign and Russian examples of building the business strategy for a consulting company are provided.
The article is devoted to the urgent theme of the modernity – modeling the activities of Internet companies, whose main task is to run efficient business. The main purpose of this article is to define the basic regularities that determine the peculiarities of risk assessment in business as the main element that contributes to achieving the economic security of an organization, as well as to explain the choice of the optimal model for integrating a company into the information business. In the article the information business models have been analyzed, the areas of information commerce, factors for the efficient implementation of business models, and the attractiveness of the online market have been considered. The possibilities of using new online technologies in intracompany processes and communications in advertising and other commercial activities of the company have been assessed.
W niniejszym rozdziale poszukujemy odpowiedzi na następujące pytania:
• czy polskie firmy wypracowały swój własny sposób internacjonalizacji, czy
też dokonują ekspansji na wzór firm pochodzących z tzw. dojrzałych gospodarek
rynkowych?
• jakie jest podłoże (przyczyny) odwzorowania lub wypracowania własnych
sposobów ekspansji?
• czy przyjęte sposoby ekspansji w kształcie, w jakim są realizowane, są w stanie
kształtować długotrwałe przewagi konkurencyjne na zajmowanych rynkach?
Rozdział rozpoczyna krótkie omówienie barier wiążących się z ekspansją międzynarodową, które mogą być szczególnie dotkliwe dla małych i średnich przedsiębiorstw (MSP). Tę część ilustrują wyniki badań empirycznych, dotyczące postrzegania tych barier przez polskie MŚP. Następnie krótko przedstawiamy możliwe formy internacjonalizacji w ujęciu sekwencyjnym, rosnącego ryzyka, zaangażowania organizacyjnego i kapitałowego firmy w działalność międzynarodową. Kolejne części poświęcono omówieniu starszych i nowszych teorii internacjonalizacji z uwzględnieniem koncepcji powstałych w wyniku obserwacji międzynarodowej ekspansji małych i średnich
przedsiębiorstw oraz firm z tzw. gospodarek wschodzących. Sekcja przedostatnia przedstawia wyniki kilku badań empirycznych, obrazujące strategie ekspansji
międzynarodowej polskich małych, średnich i dużych podmiotów. Analizę danych
statystycznych i obcych badań empirycznych ilustrujemy kilkoma przykładami strategii
ekspansji wybranych polskich podmiotów, pokazując wachlarz możliwych motywów,
form wejścia na rynki zagraniczne oraz stopnia elastyczności, adaptacji czy standaryzacji
działania na arenie międzynarodowej. Rozdział kończy część poświęcona implikacjom menedżerskim, wynikającym z przeprowadzonej analizy (podsumowanie). Przedstawiamy w niej wskazówki i tzw. dobre praktyki, których umiejętne zastosowanie (przy dopasowaniu ich do określonych warunków prowadzonego biznesu) może przyczynić się do zwiększenia prawdopodobieństwa sukcesu ekspansji.
Makalah ini bertujuan untuk menganalisis kerangka dari teori Resource Based View(RBV) yang dikemukakan para ahli dalam pembahasan manajemen strategik dan tertutamayang berkaitan dengan kekuatan dan kelemahan perusahaan dengan cara mengidentifikasiapa yang menjadi kekuatan dan kapabilitas perusahaan serta menghindari kelemahan yangdimiliki untuk keunggulan bersaing, dengan penekanannya pada konsep tentang RBV danmenganalisis perkembangan teori RBV dalam manajemen stratejik,serta menganalisislingkungan internal dilihat dari sudut kekuatan dan kelemahan yang akan membantuperusahaan agar mampu mengambil keuntungan dari peluang-peluang yang ada dan mampumenghindari dinamis ancaman yang mungkin timbul.Metode penelitian yang digunakanadalah berdasarkan pendekatan historis dan review literatur dari pendapat para ahli yangmembahas teori RBV dalam kaitannya dengan kapabilitas dan kompetensi dalammenciptakan daya saing yang unggul,Studi ini akan memberikan gambaran mengenai karateristik dari pendekatan sumberdaya yang dapat memberikan kontribusi dalam praktek manajemen strategi danmeningkatkan kapabilitas serta kompentensi dari perusahaan untuk meningkatkan keunggulan bersaing melalui pendayagunaan sumber daya, baik yang bersifat fisik maupunnon fisik. Dengan memperhatikan kekuatan dan kelemahan,diharapkan perusahaan dapat mengoptimalkan core competencies sumber daya yang dimilikinya dan dapat meningkatkan keunggulan bersaing perusahaan.Pada makalah ini akan diarahkan kepada analisa berbagai pendapat para ahliekonomi mengenai kerangka sumber daya yang akan menghasilkan suatu kapabilitas yaknikeahlian-keahlian yang ada pada setiap individu,serta menganalisa keunikan dari sumberdaya yang dimiliki baik yang bersifat fisik, maupun yang bersifat intangible assetsyang akanmendukung keunggulan bersaing dari suatu perusahaanKeywords :Resource Based View,Kapabilitas,Kompetensi,Keunggulan Bersaing
This research, test the impact of the market orientation and entrepreneurship behavior to organization responsiveness and implication to company’s performance by utilizing the data of AISI (Asosiasi Industry Sepeda Motor Indonesia) motorcycle dealers companies’ in Indonesia. Moreover, As the tools for this analysis are using SPSS 16.0 and LISREL 8.8. There are few results from this research. Firstly, market orientation does not have significant impact towards entrepreneurship behavior. Secondly, market orientation does have positive and significant impact towards company’s responsiveness. Thirdly, entrepreneurship behavior does have positive and significant impact towards company’s responsiveness. Fourthly, the company’s responsiveness does have positive and significant impact towards company’s performance. Keywords: Dealership, Market Orientation, Entrepreneurship, trust, responsiveness, Performance
External knowledge sources, Organizational Innovation and Organizational Performance
This research examines the importance of external knowledge sources and its relationship with organizational innovation and performance. Our empirical study is based on a sample of 200 Tunisian SMEs operating in different sectors that allows us to confirm our three hypotheses. First, we showed that the most open Tunisian SMEs to external sources of knowledge are the most prolific in terms of organizational innovation. Then, these SMEs are better able to improve their performance if they rely more on external knowledge than their internal knowledge. Finally, performance results from their continuous innovation in the organization itself. However, the positive impact of the use of external knowledge depends on the ability of SMEs to absorb it.
The paper revisits the socioeconomic theory of the Austrian School economist Ludwig M. Lachmann. By showing that the common claim that Lachmann’s idiosyncratic (read: eclectic and multidisciplinary) approach to economics entails nihilism is unfounded, it reaches the following conclusions. (1) Lachmann held a sophisticated institutional position to economics that anticipated developments in contemporary new institutional economics. (2) Lachmann’s sociological and economic reading of institutions offers insights for the problem of coordination. (3) Lachmann extends contemporary new institutional theory without simultaneously denying the policy approach of comparative institutional analysis.
Knowledge governance is characterised as a distinctive research subject, the understanding of which cuts across diverse fields in management. In particular, it represents an intersection of knowledge management, strategic management, and theories of the firm. Knowledge governance considers how deployment of governance mechanisms influences knowledge processes: sharing, retaining and creating knowledge. We survey the papers in this volume of the special issue, and discuss the remaining research challenges.
This article maintains that the consistent application of subjectivism helps reconcile contemporary entrepreneurship theory with the strategic management literature, particularly the resource-based view of the fi rm. The article synthesizes theoretical insights from Austrian economics, Penrose's (1959) resources approach, and modern resource-based theory, focus-ing on the essential subjectivity of the entrepreneurial process. This new synthesis describes entrepreneurship as a creative team act in which heterogeneous managerial mental models interact to create and arrange resources to produce a collective output that is creatively superior to individual output.
In recent years, the expansions of literature in different theories and disciplines, identification of areas and borders, demonstrated the necessity to examine the relationship between other disciplines and theories. These literatures emerged in those disciplines by scholars and made difficult to follow the traces. This study aims to contribute to the sociological scientific knowledge by taking between 1984-2015 years and putting out the basics of Resource Based School. Our study focused on disciplines that contributed to Resource Based School, determining the limits of theories, and schools explanatory power on sustained competitive advantage. Using bibliometric method's citation, our purpose is to define which theories, disciplines, schools of thought, scholars and articles contributed to the development of Resource Based School.
Question/Issue: Institutional and transaction costs theories highlight the idea that group affiliated firms outperform unaffiliated firms in emerging economies. The persistence of superior performance for group affiliated firms is, however, questioned by the fast and recent development of markets and institutions in these countries. In this article, we explore this link between firm performance and the evolution of institutional environment. Research Findings/Insights: The setting of the empirical investigation is India in the post-reform era (post 1990). We test for effects of business group affiliation on firm performance over a 17 year time period from 1990 to 2006. Our findings show that (i) the performance benefits of group affiliation erode with the evolution of the institutional environment; (ii) older affiliated firms are better able to cope with institutional transition than younger affiliated firms; (iii) service-sector affiliated firms are better able to cope with institutional transition than manufacturing-sector affiliated firms. Theoretical/Academic Implications: Our findings both support the institution - and transaction costs-based theory of business groups, and extends it by incorporating a dynamic and longitudinal component. They also demonstrate - in line with recent works - that the benefits of group membership differ for different types of member firms. Practitioner/Policy Implications: The article has implications for both managers and policy makers. Managers of business groups should timely adapt their strategy to the evolution of the institutional environment. Policy makers should, instead, devote attention to the consequences of their policies because they may undermine the efficiency of large national companies.
An enduring characteristic of extant literature on foreign operation modes is its discrete choice approach, where companies are assumed to choose one among a small number of distinctive alternatives.
In this paper, detailed information about the operations of six Norwegian companies in three key markets (China, UK and USA) is used as the basis for an exploration of the extent to which, and how and why, companies combine clearly different foreign operation modes. We examine their use of foreign operation mode combinations within given value activities as well as within given countries.
The study reveals that companies tend to combine modes of operation; thereby producing unique foreign operation mode “packages” for given activities and/or countries, and that the packages are liable to be modified over time—providing a potentially important optional path for international expansion.
The data show considerable variation across cases; ranging from extensive use of mode combinations to a singular focus on a specific mode of operation. The study contributes to a refinement of our understanding of the path of internationalisation, and throws up a number of awkward theoretical questions about the process.
Agency theory studies the problems and solutions linked to delegation of tasks from principals to agents in the context of conflicting interests between the parties. Beginning from clear assumptions about rationality, contracting and informational conditions, the theory addresses problems of ex ante (“hidden characteristics”) as well as ex post information asymmetry (“hidden action”), and examines conditions under which various kinds of incentive instruments and monitoring arrangements can be deployed to minimize the welfare loss. Its clear predictions and broad applicability have allowed agency theory to enjoy considerable scientific impact on social science; however, it has also attracted considerable criticism.
I present an analysis of a survey in which the effect of entrepreneurship education and project-based education on students at lower secondary level is investigated. The results are based on a random sample of 2000 Danish students. The analysis indicates that entrepreneurship education has a positive effect on students’ personal development, and that its effect on entrepreneurial intentions is fully mediated by its effect on students’ self-conception. A finding with important policy implications is that there is a negative interaction effect between entrepreneurship education and project-based education regarding impact on students’ self-conception. The implication of the results is that we should replace project-based education with entrepreneurship education rather than having them run in parallel.
The literature suggests that important strategic initiatives can derive from employees within the organization as they respond to needs and opportunities observed in daily operations. This seems to indicate that employees have a good sense of the firm’s operational capabilities observed through direct interactions with colleagues, customers and partners. Executives make their own judgments about the corporate capabilities from discussions with various managers, other executives and industry specialists. But, the information gathered by executives may be qualitatively different from the conditions sensed by the employees. So, we arranged a contest between operational capabilities assessed by employees and executives and the relationship to subsequent firm performance. Based on more than 400 individual data points collected from two medium-sized organizations over a period of eighteen months, advanced distributed lag time-series analyses show that the sensing of front-line employees (surprisingly) is a better medium-term predictor of organizational performance than executive judgments. These results have implications for the way organizations set up their management information and communication structure.
Three varieties of institutionalism currently dominate international business studies: new institutional economics, new organizational institutionalism, and comparative historical institutionalism. Yet corresponding measures of institutional country distance are only available for the first two strands of institutionalism. This paper addresses the under-representation of comparative historical institutional thought in currently available measures of institutional distance. Building on Whitley's business systems framework, a measure of institutional distance is developed and validated which captures intrinsic, substantive institutional differences in economic organization, rather than differences in institutional effectiveness. The results of the two-stage cluster analysis used to validate the selected indicators closely approximate the business systems typology, which is both indicative of the validity of this measure and of the distinctiveness of the business system types that make up the business system framework.
The emerging knowledge governance approach asserts the need to build micro-foundations grounded in individual action. Towards this goal, using the theory of planned behaviour, we aim to explain individual knowledge-sharing behaviour as being determined by the intention to share knowledge and its antecedents: attitude towards knowledge sharing, subjective norms and perceived behavioural control. In addition, we consider managerial interventions (governance mechanisms) that managers can employ to influence the identified antecedents and thereby govern individual knowledge-sharing behaviour. We test the model arrived at on a dataset collected among individuals engaged in knowledge sharing in two competing firms. Results of the LISREL analysis show that the use of rewards affects attitudes towards knowledge sharing negatively, while the use of reciprocal schemes and communication mechanisms have a positive effect on subjective norms and perceived behavioural control, respectively.
This paper proposes a multidimensional index of regional and global orientation that can be used in confirmatory studies with econometric methodologies. Unlike extant measures, the index is objectively scaled, and controls for home country orientation and market size differences. The index is shown to be consistent with models of internationalization that incorporate different assumptions about investment choice and global competition. Preliminary results show that large multinationals follow home region oriented internationalization paths, although much of the regional effect reported by previous studies in fact reflects strong home country biases.
The role of knowledge, organizational learning and innovation as levers of competitive advantage is now a commonly acknowledged insight in research in international management, specifically in the emerging ‘knowledge-based view’. However, this view has not yet developed into a unifying framework and there are significant holes in the understanding of how knowledge may be turned into a source of competitive advantage for MNCs. In order to advance the knowledge-based view of the MNC – and particularly of the metanational company – we develop the notion of the MNC as a global knowledge system that links local knowledge structures and combines local knowledge elements that are complementary in order to achieve strategic advantage. These ideas are used to frame the changing environments, strategic intents and learning stances that characterize MNCs, and to derive a set of research challenges for MNC research.
Absorptive capacity is frequently highlighted as a key determinant of knowledge transfer within multinational enterprises. But how individual behaviour translates into absorptive capacity at the subsidiary level, and how this is contingent on subsidiaries' social context, remains under‐addressed. This not only limits our understanding of the relationship between individual‐ and organizational‐level absorptive capacity, but also hampers further research on potentially relevant managerial and organizational antecedents, and limits the implications we can draw for practitioners who seek to increase their organization's capacity to put new knowledge to use. To address this shortcoming we conduct an in‐depth comparative case study of a headquarters‐initiated knowledge transfer at two subsidiaries of the same multinational enterprise. The findings demonstrate that social interaction is a prerequisite for subsidiary absorptive capacity as it enables employees to participate in the transformation of new knowledge to the local context and the development of local applications. The findings also illustrate how organizational conditions at the subsidiary level can impact subsidiary absorptive capacity by enabling or constraining local interaction patterns. These insights contribute to the absorptive capacity literature by demonstrating the scale and scope of social interaction as a key link between individual‐ and organizational‐level absorptive capacity.
The purpose of this exploratory study is, first, to identify the underlying dimensional nature of the range of decision variables that MNEs generally associate with making RHQ location choices and, second, to examine the extent to which MNEs, when grouped according to contextual characteristics, use discernibly different decision criteria when making RHQ location selection decisions. Based on a sample of respondents from 57 RHQs in Europe and the Asia-Pacific (specifically Australia), principal components analysis yielded 9 interpretable factor dimensions, underlying 39 location decision variables, which were then used to compare decision schemas groups. Three contextual classifications, 'strategic purpose of RHQ establishment', 'nationality of company origin', and 'industry sector', were hypothesized and used to categorize the sample. The analysis indicated that while subgroups within these grouping categories were associated with distinctive location selection priorities, those RHQs established in order to be responsive to regional markets appeared to use significantly different selection criteria compared to those RHQs established to facilitate global coordination. Similarly, the selection criteria US-based MNEs used to make RHQ location decisions, were found to be significantly different to the selection criteria Asian-based MNEs used when making their RHQ location decisions. Finally, location decision priorities were also found to vary across industry sector.
We discuss the behaviorist and empiricist foundations of the organizational routines and capabilities literature, specifically the extant emphasis placed on experience, repetition and observation as the key inputs and mechanisms of behavior, learning and change in organizations. Based on this discussion we highlight several concerns associated with specifying experience and repetition as antecedents of routines and capabilities, namely, (1) the problem of origins and causation, (2) the problem of extremes, (3) the problem of intentionality, (4) the problem of new knowledge, and (5) the problem of the environment. We highlight the “poverty of stimulus” argument and more generally discuss how internalist or rationalist, choice-based approach might provide a more fruitful (though preliminary) foundation for extant research on organizational routines and capabilities.
The knowledge-based view has recently been criticized for overlooking individual-level action and interaction in favor of an over-emphasis on the firm-level capabilities. This paper seeks to respond to that criticism by providing some individual-level explanations for a collective-level phenomenon – intraorganizational knowledge transfer. We suggest that variations in individual ability, motivation and the use of interaction opportunities provided by the organization explain part of the variation found in individuallevel knowledge acquisition and use, and that this has an influence on organizational level knowledge transfer within a firm. More specifically, we find that ability and intrinsic motivation are important drivers of individual level knowledge acquisition and use, while extrinsic motivation has no impact. Furthermore, the extent to which an individual uses interaction opportunities provided by the organization influences knowledge transfer both directly and through a moderator effect with ability and person-to-person interaction.
We demonstrate that the strategic group concept has underlying parallels with the resource-based concept of the firm as a collection of resources. In particular, there is correspondence between the two concepts in terms of their origin, evolution, and function. Further, both the resource-based and strategic group literatures are moving toward an increased emphasis on multi-disciplinary economic, behavioral, and cognitive research. These trends in the resource-based and strategic group debates reflect a larger paradigm shift in strategic management that is moving both strands of the literature toward a knowledge integration of economic, behavioral, and cognitive perspectives.
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Suppose a new high growth segment opens up in your industry. Should you enter that segment? lviany other firms are likely to enter as well. Will the returns justify the costs? If too many firms enter, and commit high levels of funding, your return on investment will be mediocre at best. This would be a disappointing experience, but it is one many companies have had in races for market share and technological advantage. Of course, this does not mean that you should not chase such opportunities. If you fail to do so, you might do even worse. It does, however, inrply the following: on an even playing field, against well managed compe titors, you cannot expect superior performance. You need to look for tilted playing fields, areas where you have a competitive advantage. Where do you have an advantage? You have the advantage in markets where your resources are superior to those of the competition. In such a game you can achieve a strong market position at a lower cost than your competitors. The first step is to identify your resources. The second step involves deciding where to compete, Only then do you worry about how to compete. This shifts the focus of strategic analysis from the industry to the company itself Il]. Stratesv formulation consists in the identification, deployment and development of resources. What principles govern this process in well--managed companies? Critical Resources A list of your company's resources u,ould quickly get very long: this plant. that patent, such-and-such a brand name. a good manager here, a good R & D team there. etc. Onlv verv feu'resources are critical in the sense that JJ Il] Stt this argunrcnt lunrs irttcntitln awrr-1, {'11v6l thc industrl'lilcLrs suggcstcd l'rv Prtrtcr. thev can differentiate vou from competition. The rcsource has to be unique. If competitors can buv or develop identical resources. they will do so until the field is overcrowded. But what unique resources can a company own? Not very many, apart from patents, brand namcs. mining rights and pieces of land. But there is hope. You can profit from a resource even if you do not own it! This may happen bv trading rvith ou'ners of a unique resource if these owners have a difficult time switchinq to alternative trading partners. To see how this works, it is helpful to look at an example. Let us sav that one of your managers, Smith, is particularly good. Normally, you have to pay him a salary fully reflecting this, since competitors otherwise will hire him arva,'-. This process could conceivably continue until Smith's salary is commensurate with his skills, leaving no extra profits for the employer [2]. There arc, horuvever, two exceptions to this: Team Effects. Suppose that Smith is good in part because he works well with Jones. Now if these two can agree to market themselves as a package, they may well be able to reahze their joint value. However, if they cannot, vour company can pay them their individual values and reap their (larger) joint value. Specific Assets. Alternatively, it may be the case that Smith is more valuable to you than to other companies. Also in this case you will be able to pay him less than what he delivers.
The concept of the individual and his/her motivations is a bedrock of philosophy. All strands of thought at heart come down to a particular theory of the individual. Economics, though, is guilty of taking this hugely important concept without questioning how we theorize it. This superb book remedies this oversight.
What if rent from a competitive advantage is appropriated so it cannot be observed in performance measures? The resource-based view was not formulated to examine who will get the rent. Yet, this essay argues that the factors leading to a resource-based advantage also predict who will appropriate rent. Knowledge-based assets are promising because firm-specificity, social complexity, and causal ambiguity make them hard to imitate. However, the roles of internal stakeholders may grant them a great deal of bargaining power especially relative to investors.
This essay integrates the resource-based view with the bargaining power literature by defining the firm as a nexus of contracts. This new lens can help to explain when rent will be generated and, simultaneously, who will appropriate it. In doing so, it provides a more robust theory of firm performance than the resource-based view alone. It is also suggested that this lens might be useful for examining other theories of firm performance.
Purpose
The purpose of the paper is to determine and empirically examine the effect of human resource management (HRM) practices on knowledge transfer within multinational corporations.
Design/methodology/approach
It is suggested that the employment of human resource practices, which affect absorptive capacity of knowledge receivers and support organizational learning environment, is positively related to the degree of knowledge transfer to the subsidiary. Moreover, the higher degree of knowledge transfer is expected when HRM practices are applied as an integrated system of interdependent practices. Hypotheses derived from these arguments are tested on the data from 92 subsidiaries of Danish multinational corporations (MNCs) located in 11 countries.
Findings
Results of the analysis indicated the existence of two groups of HRM practices conducive to knowledge transfer. The simultaneous effect of the first group of HRM practices consisting of “staffing”, “training”, “promotion”, “compensation” and “appraisal” on the degree of knowledge transfer was found to be positive and substantial. The hypothesis regarding the effect of corporate socialization mechanisms and flexible working practices (the second group of HRM practices) was not supported by the data. The analysis also indicated that some HRM practices have a complementary effect on the degree of knowledge transfer when they are applied as a system.
Research limitations/implications
While this study makes a contribution to our understanding of the relationship between HRM practices and knowledge transfer in the MNC, clearly, additional research is needed to develop this link further, which until now has been largely black‐boxed.
Originality/value
Makes a contribution to our understanding of the relationship of HRM practices and knowledge transfer in MNCs.
Acknowledgments: Special thanks to Peter Abell, Torben Juul Andersen, Russ Coff, Rachel Hilliard, Lasse Lien, Anoop Madhok, Joe Mahoney, Jackson Nickerson, and
Resource-based theorists argue that human assets can be a source of sustainable advantage because tacit knowledge and social complexity are hard to imitate. However, these desirable attributes cause dilemmas that may prevent firms from generating an advantage. This article develops a framework for analyzing and coping with these challenges. Although the problem arises from the strategy literature, the solutions are drawn from the organizational behavior, human resource management, human capital, and professions literatures. Finally, I examine implications for how insights from these diverse literatures can be integrated to guide future strategy research.
Research on multinational corporation (MNC) knowledge transfer has argued continuously for the behavior of knowledge senders to be a determinant of knowledge transfer. Although the importance of disseminative capacity regarding knowledge transfer has been illustrated in numerous conceptual studies, substantial empirical support is largely absent. Based on previous studies, re-operationalizes disseminative capacity as being dependent upon the ability and the willingness of organizational actors to transfer knowledge where and when it is needed in the organization. Using the context of expatriation, suggests that MNCs may apply different mechanisms depending on whether they want to develop expatriates' ability or willingness to transfer knowledge. Suggests that MNCs may enhance expatriates' willingness to transfer knowledge through the employment of long-term expatriate assignments, whereas expatriates' ability to transfer knowledge may be increased through their involvement in temporary assignments such as short-term assignments, frequent flyer arrangements, and international commuting. Tests the hypotheses empirically based on data from 92 subsidiaries of Danish MNCs located in 11 countries.
We counter Barney's challenges and reaffirm the tautology of the elemental business- level resource-based "view" (RBV). We develop a mathematical representation of the RBV as a first step toward formalizing its statements. We then explore the implications of our assertion (and Barney's agreement) that resource value is indeed determined outside of the RBV.
The beliefs of economists are not solely determined by empirical evidence in direct relation to the theories and models they hold. Economists hold 'ontological presuppositions', fundamental ideas about the nature of being which direct their thinking about economic behaviour. In this volume, leading philosophers and economists examine these hidden presuppositions, searching for a 'world view' of economics. What properties are attributed to human individuals in economic theories, and which are excluded? Does economic man exist? Do markets have an essence? Do macroeconomic aggregates exist? Is the economy a mechanism, the functioning of which is governed by a limited set of distinct causes? What are the methodological implications of different ontological starting points? This collection, which establishes economic ontology as a coordinated field of study, will be of great value to economists and philosophers of social sciences.
The advancement of social theory requires an analytical approach that systematically seeks to explicate the social mechanisms that generate and explain observed associations between events. These essays, written by prominent social scientists, advance criticisms of current trends in social theory and suggest alternative approaches. The mechanism approach calls attention to an intermediary level of analysis in between pure description and story-telling, on the one hand, and grand theorizing and universal social laws, on the other. For social theory to be of use for the working social scientist, it must attain a high level of precision and provide a toolbox from which middle range theories can be constructed.
This paper focuses on dynamic capabilities and, more generally, the resource‐based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high‐velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well‐known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high‐velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long‐term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high‐velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.
This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed ‘best practice’). This suggests that they are more homogeneous, fungible, equifinal, and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic, stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of RBV, we conclude that traditional RBV misidentifies the locus of long-term competitive advantage in dynamic markets, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright © 2000 John Wiley & Sons, Ltd.
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable over time, this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage-value, rareness, imitability, and substitutability are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.
In this original and important book, Harold Kincaid defends a view of the special sciences-all sciences outside physics-as autonomous and nonreducible. He argues that the biological and social sciences provide explanations that cannot be captured by explanations at the level of their constituent parts, and yet that this does not commit us to mysterious, nonphysical entitites like vital forces or group minds. A look at real scientific practice shows that the many different sciences can be unified in a way that leaves them each an autonomous explanatory role. This book will be of great interest to philosophers of science and social scientists.
Contingency theories of management and economic theories of industrial organization both contribute to a mechanistic view of the strategic manager as "analyst." In this view, the secret to managerial effectiveness is through the application of scientific laws or principles, be they "laws of organization" or "laws of the marketplace." This paper argues for a view of strategic management as a creative activity and suggests a dialectic between free will and determinism in conceptualizations of strategic behavior.
Scitation is the online home of leading journals and conference proceedings from AIP Publishing and AIP Member Societies
There has been renewed interest in dispositional explanations of individual behavior in organizations. We argue that this new stream of dispositional research is flawed both conceptually and methodologically, and we suggest several theoretical and empirical improvements. We conclude by discussing the costs of a dispositional perspective for both organizations and organizational participants.
First published in 1895: Emile Durkheim's masterful work on the nature and scope of sociology--now with a new introduction and improved translation by leading scholar Steven Lukes.The Rules of the Sociological Method is among the most important contributions to the field of sociology, still debated among scholars today. Through letters, arguments, and commentaries on significant debates, Durkheim confronted critics, clarified his own position, and defended the objective scientific method he applied to his study of humans. This updated edition offers an introduction and extra notes as well as a new translation to improve the clarity and accessibility of this essential work. In the introduction, Steven Lukes, author of the definitive biography Emile Durkheim: His Life and Work, spells out Durkheim's intentions, shows the limits of Durkheim's view of sociology, and presents its political background and significance. Making use of the various texts in this volume and Durkheim's later work, Lukes discusses how Durkheim's methodology was modified or disregarded in practice--and how it is still relevant today. With substantial notes on context, this user-friendly edition will greatly ease the task of students and scholars working with Durkheim's method--a view that has been a focal point of sociology since its original publication. The Rules of the Sociological Method will engage a new generation of readers with Durkheim's rich contribution to the field."
Acknowledgments The comments of Jean Boddewyn, Kirsten Foss, and Jakob Lage Hansen, three reviewers, the editor of this journal and seminar audiences at Université Paris (Sorbonne), UniversitéCaén, Norges Handelshøyskole,and Southern Denmark,University are gratefully acknowledged.,Thanks,also to Joe Mahoney ,for discussion ,of some ,of the key issues. Some ,parts of the present paper builds on joint work with Kirsten Foss (Foss and Foss 2002), and the paper may,be read as a methodological,companion,to Foss and Foss (2002). The usual disclaimer applies. Keywords: Transaction costs, strategic management, industrial organization. ,1
This article provides a discussion of the foundational aspects of evolutionary economics. Using the framework developed by British realist philosopher Roy Bhaskar, I argue that what sets evolutionary economics apart from neoclassical economics is fundamentally a difference that may best be called “ontological.” Whereas evolutionary economics theorizes on the basis of an economic universe that is open, in the sense that the emergence of novelties is allowed, neoclassical economics suppresses novelty. Employing Bhaskarian concepts such as “powers,” “generative mechanism,” and “closure,” I identify further differences—in the domains of explanatory approach, for example, and trace them to the underlying ontological difference.
This paper argues that knowledge mapping may provide a fruitful avenue for intellectual capital management in academic environments such as university departments. However, while some research has been conducted on knowledge mapping and intellectual capital management in the public sector, the university has so far not been directly considered for this type of management. The paper initially reviews the functions and techniques of knowledge mapping and assesses these in the light of academic demands. Second, the result of a focus group study is presented, where academic leaders were asked to reflect of the uses of knowledge mapping at their departments and institutes. Finally a number of suggestions are made as to the rationale and conduct of knowledge mapping in academe.
This book contains 15 papers by the influential American philosopher, David Lewis. All previously published (between 1966 and 80), these papers are divided into three groups: ontology, the philosophy of mind, and the philosophy of language. Lewis supplements eight of the fifteen papers with postscripts in which he amends claims, answers objections, and introduces later reflections. Topics discussed include possible worlds, counterpart theory, modality, personal identity, radical interpretation, language, propositional attitudes, the mind, and intensional semantics. Among the positions Lewis defends are modal realism, materialism, socially contextualized formal semantics, and functionalism of the mind. The volume begins with an introduction in which Lewis discusses his philosophical method.
Mir and Watson (2000) advocate that constructivism has the potential to inform strategy research. In their discussions, they compare constructivism with realism, and highlight certain alleged strengths of the former over the latter. Although their paper provides some insights, their version of constructivism is problematic and their understanding of realism is inaccurate. In this note we clarify some key issues concerning constructivism and realism. Moreover, we argue that Mir and Watson's insights can be accommodated within a critical realist framework.
This text book was originally published in 1963. It is now in its 12rth edition and re-titled Economics and co-authored with Alec Chrystal. It was originally written to promote the Poppperian view that empirically interesting proposition must be potentially testable i.e., capable of being confronted with conflicting evidence. This in contrast to the then-prevailing view in the UK that was stated by Robbins in the Nature and Significance that theories are tested by examining the intuitive plausibility of their assumptions. Greatly changed over the decades, the 4th edition is be best one to catch the thrust and content of the original.. .
This paper elucidates the underlying economics of the resource-based view of competitive advantage and integrates existing perspectives into a parsimonious model of resources and firm performance. The essence of this model is that four conditions underlie sustained competitive advantage, all of which must be met. These include superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition. In the concluding section, applications of the model for both single business strategy and corporate strategy are discussed.
Most theories of competitive advantage seek to explain rent capture at the firm level but ignore which internal stakeholders will appropriate this rent. For example, IO economics focuses on market structure and the resource-based view focuses on unique firm-level capabilities that rivals cannot imitate or acquire. As researchers apply these frameworks, they either: 1) assume rent is captured by shareholders, 2) treat within-firm rent appropriation exogenously, or 3) ignore internal rent appropriation altogether. However, internal rent appropriation determines how much of the rent will be observable in measures of firm performance and is therefore central to empirical research focused on firm performance. What if rent from a competitive advantage is appropriated internally so it cannot be observed in performance measures? The resource-based view was not formulated to examine who will get the rent. Yet, this essay argues that the factors leading to a resource-based advantage also predict who will appropriate rent. Knowledge-based assets are promising as a source of sustainable advantage because firm-specificity, social complexity and causal ambiguity make them hard for rivals to imitate. Accordingly, these strong roles for internal stakeholders may grant them a great deal of bargaining power especially relative to investors who contribute the most fungible of all resources. This article integrates the resource-based view with the bargaining power literature by defining the firm as a nexus of contracts. This lens can help to explain when rent will be generated and, simultaneously, who will appropriate it. In doing so, it provides a more robust theory of firm performance than the resource-based view alone. This lens might also be useful for examining other theories of firm performance.
Milton Friedman (1912–2006) was born in Brooklyn, New York, and received his Ph.D. in economics from Columbia University. He taught at the University of Minnesota, and then for many years at the University of Chicago. After 1977, he was a Senior Research Fellow at the Hoover Institution in Stanford, California. Friedman is best known for his work in monetary theory and for his concern for free enterprise and individual liberty. Milton Friedman was awarded the Nobel Prize in economics in 1976. The following essay, which is reprinted in its entirety, is the most influential work on economic methodology of this century. In his admirable book on The Scope and Method of Political Economy John Neville Keynes distinguishes among “a positive science … [,] a body of systematized knowledge concerning what is; a normative or regulative science … [,] a body of systematized knowledge discussing criteria of what ought to be …; an art … [,] a system of rules for the attainment of a given end”; comments that “confusion between them is common and has been the source of many mischievous errors”; and urges the importance of “recognizing a distinct positive science of political economy.” This [essay] is concerned primarily with certain methodological problems that arise in constructing the “distinct positive science” Keynes called for – in particular, the problem how to decide whether a suggested hypothesis or theory should be tentatively accepted as part of the “body of systematized knowledge concerning what is.”
Building on prior work on levels of analysis, we present an approach for understanding changes in multiple levels of analysis or entities over time. The conceptual framework describes how entities may remain stable over time, shift toward independence at a lower level of analysis, or change to homogeneous or heterogeneous interdependence at a higher level of analysis. We discuss examples and implications of the approach for theory building.