No full-text available
To read the full-text of this research,
you can request a copy directly from the author.
Firm Resources and Sustained Competitive Advantage
Abstract
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.
... Based on the Resource-Based View, a company can maintain its competitive advantage if it can: (a) produce long-term economic growth; (b) make use of its capacity to locate, develop, deploy, and protect certain resources; and (c) set itself apart from its rivals. According to Barney (1991), a company's assets include its skilled workforce, brand name, reputation, capital equipment, and other assets. According to Barney (1991Barney ( , 2002, these resources are strategic resources that play a major role in establishing a durable competitive advantage since they are valued, uncommon, and incomparable. ...
... According to Barney (1991), a company's assets include its skilled workforce, brand name, reputation, capital equipment, and other assets. According to Barney (1991Barney ( , 2002, these resources are strategic resources that play a major role in establishing a durable competitive advantage since they are valued, uncommon, and incomparable. A company's physical assets, such as its facilities, machinery, and raw materials, are known as its tangible business resources (Carmeli & Tishler, 2004). ...
... These resources are the things that a company owns and uses to support the implementation of strategies aimed at enhancing performance, such as organizational procedures, information, and knowledge. The performance of a corporation is significantly influenced by both tangible and intangible resources, including knowledge, expertise, skills, perceptions, culture, reputation, and network, despite their immobility and heterogeneity (Hall, 1992;Connor, 2002;Peteraf, 1993;Barney, 1991). As a result, these uncommon and unique combinations of strategic resources within a company have the ability to improve performance and provide ongoing advantages over competitors (Barney, 1995;Miller & Shamsie, 1996). ...
... Our findings indicate that a strategic blend of attention to both industry-wide concerns and distinctive issues can spur the generation of growth strategies. Third, our findings imply a potential interconnection between the valuableness and rarity of attentional allocation patterns, two attributes traditionally distinguished in the resource-based view (Barney, 1991;Peteraf, 1993). We posit that the uniqueness of the issues a firm focuses on -essentially its rarity within the competitive landscape -can directly contribute to growth actions and, by extension, firm performance, thereby underscoring its inherent value. ...
... For instance, if a firm and its competitors in a competitive environment identify the same opportunities, the uniqueness of such opportunity recognition diminishes. In such cases, opportunity recognition is not rare, and the competitors may be able to take the same actions, leading to competitive parity (Barney, 1991). To examine the linkage between organizational attention and firm performance, we must also theoretically consider an aspect of organizational attention that is situated in a competitive environment. ...
... Noticing an identical issue may lead to different implications for firm behaviour and performance, depending on the competitors' recognition. When all competitors in an industry recognize the same issue, it will not trigger any valuable action because the firm and its competitors can take the same action; conversely, when only the focal firm recognizes the issue within its industry, such opportunity recognition is rare and enables the firm to take actions that contribute to competitive advantage (Barney, 1991;Peteraf, 1993). Accordingly, from the competition standpoint, a relative view of organizational attention compared to competitors provides insight into its linkage to firm behaviour and performance. ...
The attention‐based view posits that a firm's allocation of attention to particular issues directly influences its actions and performance. Yet, the impact of attentional uniqueness – how the pattern of a firm's attentional allocation diverges from its competitors within the same industry – on behaviour and performance remains underexplored. We argue for an inverted U‐shaped relationship between attentional uniqueness and firm performance, mediated by the frequency of growth actions. This is because a firm's attentional allocation shapes its reaction to problems, opportunities, and threats in the competitive landscape, resulting in its competitive advantage. To generate growth actions, a firm needs to have both a unique perspective and a general understanding of its industry. Furthermore, we propose that this relationship is contingent on environmental munificence, which reflects the presence of growth opportunities. Our analysis, leveraging structural topic modelling on annual security reports from 986 Japanese listed companies between 2004 and 2016, broadly supports these theoretical predictions.
... Dans le cadre de la résilience, l'entreprise doit préparer en pré-crise des ressources organisationnelles nécessaires (Barney, J., 1991), d'une part, pour l'acquisition des capacités dynamiques (Teece, 2007) qui sont primordiales pour surmonter la crise, d'autres part, pour développer un avantage concurrentiel (Barney, J., 1991, Teece, 2007. Ces capacités organisationnelles se développent, en acquérant des ressources appropriées, en développant des connaissances utiles pour bien gérer les risques, et en prenant la bonne décision durant la crise (reconfiguration des activités, et élaboration des stratégies qui permettent d'engager l'humain et le non-humain, dans l'objectif d'assurer leur force et leur durabilité) (Alami et al., 2021 ;Sinapin, 2020). ...
... Dans le cadre de la résilience, l'entreprise doit préparer en pré-crise des ressources organisationnelles nécessaires (Barney, J., 1991), d'une part, pour l'acquisition des capacités dynamiques (Teece, 2007) qui sont primordiales pour surmonter la crise, d'autres part, pour développer un avantage concurrentiel (Barney, J., 1991, Teece, 2007. Ces capacités organisationnelles se développent, en acquérant des ressources appropriées, en développant des connaissances utiles pour bien gérer les risques, et en prenant la bonne décision durant la crise (reconfiguration des activités, et élaboration des stratégies qui permettent d'engager l'humain et le non-humain, dans l'objectif d'assurer leur force et leur durabilité) (Alami et al., 2021 ;Sinapin, 2020). ...
... Au niveau de l'engagement, le potentiel humain joue un rôle central dans la genèse de « la performance économique durable » (Savall et al., 2013), surtout que ce potentiel constitue le seul facteur actif incorporel de création de valeur, il s'agit d'un « avantage concurrentiel » pour l'entreprise, une des ressources précieuses, rares, non substituables et étayées par des compétences tacites ou des processus organisationnels socialement complexes, difficilement imitables (Barney, 1991). Le niveau du potentiel humain ainsi son intensité dépend essentiellement de trois composantes : l'énergie humaine, le comportement des acteurs dans la vie professionnelle et leurs compétences (Bonnet, et al., 2016). ...
The crisis can present itself to a company as a favorable opportunity to develop dynamic capabilities, which are necessary for flexibility and proactivity to change the situation to its advantage, while learning from this experience to develop innovative solutions and even to turn the company's crisis into a entrepreneurial opportunity to seize. This requires the prior acquisition of novel and essential resources for developing adaptive and resilient capabilities, which are considered potential sources of rents and provide a competitive advantage. In this article, we attempted, using a literature review methodology, to present the organizational factors necessary for strengthening entrepreneurial resilience and leveraging the situation to its advantage. The results of our literature review demonstrate the importance of adopting an interactionist approach necessary in the sensemaking process. Through sensemaking, individuals face radical change such as a crisis, give meaning to their collective experiences within the company, and facilitate understanding and adaptation to the envisaged situation. This sensemaking enhances organizational learning during crises, as well as innovation. The results of our research highlight the role of emphasizing human potential in order to master value destruction.
... The theoretical foundation of this study lies in the resource-based view theory, introduced by Barney (1991), which serves as a managerial framework for identifying strategic resources capable of providing a competitive edge to a company. The resource-based view (RBV) theory, as elucidated by Barney (1991) is a management concept concentrating on internal organizational resources and capabilities as determinants of competitive advantage. ...
... The theoretical foundation of this study lies in the resource-based view theory, introduced by Barney (1991), which serves as a managerial framework for identifying strategic resources capable of providing a competitive edge to a company. The resource-based view (RBV) theory, as elucidated by Barney (1991) is a management concept concentrating on internal organizational resources and capabilities as determinants of competitive advantage. It asserts that a company's distinctive blend of tangible and intangible resources, coupled with its organizational competencies, dictates its potential for achieving lasting competitive advantage and superior performance. ...
... It asserts that a company's distinctive blend of tangible and intangible resources, coupled with its organizational competencies, dictates its potential for achieving lasting competitive advantage and superior performance. The primary assertion of the RBV theory is that a company's resources and capabilities play a pivotal role in its performance and success (Barney, 1991;Helfat & Peteraf, 2003). The theory is relevant to organizational resource utilization as it emphasizes the need for firms to carefully identify, develop, and leverage their unique resources and capabilities to gain a competitive edge (McGahan, 2021). ...
This research examined the effect of physical distribution strategies on the marketing performance of bottled water companies in Calabar. It employed a cross-sectional survey approach. Primary data were collected from 276 operational personnel of bottled water companies in Calabar through a structured questionnaire. Descriptive statistics were applied to analyze and interpret the data, while multiple linear regression was utilized to test the hypotheses. The results unveiled significant positive impacts of order processing, transportation, inventory, and warehousing management on the marketing performance of bottled water companies in Calabar, Nigeria. Therefore, the study recommends the following, among others: bottled water companies should integrate innovative technologies into their order processing systems, such as automated order placement, and order sorting software to ensure the delivery of accurate and personalized orders to customers at all times; a robust transportation management system characterized by timely carrier scheduling, clear route planning and automated carrier tracking should be in place to enable bottled water companies achieve effective distribution of products to customers when needed; and bottled water companies should prioritize inventory management through strategic inventory planning, automated inventory control and prompt inventory replacement to ensure that inventory resources required for production and customer service are consistently available in appropriate quantities and quality.
... In this research, the links in the model were explained using the Resource Based View (RBV) theory [14] and social cognitive theory (SCT) [12] as the underlying theories. According to the RBV theory, a company's core competence is dependent on its ability to acquire corporate resources, which may be valuable, rare, impossible to replace, or only partially replicable [14]. ...
... In this research, the links in the model were explained using the Resource Based View (RBV) theory [14] and social cognitive theory (SCT) [12] as the underlying theories. According to the RBV theory, a company's core competence is dependent on its ability to acquire corporate resources, which may be valuable, rare, impossible to replace, or only partially replicable [14]. Additionally, variations in a firm's resources result in a range of corporate activities and performance [50]. ...
... Additionally, variations in a firm's resources result in a range of corporate activities and performance [50]. Resources include corporate culture in addition to assets, capabilities, information, and expertise [14]. Corporate environmental ethics (CEE) can be a vital intangible resource for businesses aiming to achieve environmental goals since it is a component of organisational culture that emphasises environmental management [109]. ...
This quantitative study attempts to examine how circular economy practices influence the sustainable performance of the textile and apparel industry in Bangladesh. We also investigate the influence of corporate environmental ethics on circular economy implementation and green self-efficacy as a moderator on the relationship between corporate environmental ethics and circular economy practices. To carry out the objectives, the study offered a research framework according to the social cognitive theory and Resource-based view theory. For the empirical test, an online cross-sectional survey was administered among 300 owners or managers from Bangladeshi textile and apparel companies. The collected data were analyzed using the Structural Equation Modelling approach applying the AMOS software version 21. The study revealed that all the circular economy practices such as internal environment management, eco-design, and investment recovery significantly affect the entire sustainability performance dimension (economic, environmental, and social performance) in the apparel and textile industry in Bangladesh. Also, corporate environmental ethic influences circular economy practices. The study confirmed that the relationship between corporate environmental ethics, internal environmental management, and eco-design is moderated by green self-efficacy. This study provides new results to circular economy practices literature along with numerous managerial implications at the end.
... The stakeholder's theory is used in illustrating a typical stakeholder network, which often includes governments, First Nations groups, special interest groups, the environment, and the society at large in which an organization operates (Amelia & Larry, 2018). The operations of an organization can have an impact on all of these stakeholders, and therefore all their interest must be taken into consideration if the organization wishes to operate in a conducive environment and yield substantial results (Barney, 2021). This is because when the interests of stakeholders are not met, group purchasing may be jeopardized. ...
... Supplier's interest has been seen as a key enable for purchasing consortium (Barney, 2021). Supplier's interest and involvement may be viewed as how suppliers want to partner with the business through making queries and biding for the advertised projects (Kuei, Madu, & Lin, 2020). ...
Purpose: The objective of the study was to determine the influence of supplier interest on purchasing consortia at the county referral hospitals in the coast region, Kenya. The researcher further investigated the moderating influence of Management Information System on the relationship between supplier interest and purchasing consortia at the county referral hospitals in the coast region, Kenya. Methodology: The study embraced the descriptive research design. The study population comprised of 212 officials drawn from the county referral hospitals in the coast region of Kenya. The stratified random sampling technique used resulted into having 139 units of analysis. The study used primary quantitative data which was collected via questionnaires, whereas data analysis was through the statistical package for social sciences. Findings: The hypothesis testing led to the rejection of H01 since the p-value of .000 was less than .05, thus depicting that supplier interest has a significant positive influence on purchasing consortia at the county referral hospitals in the coast region, Kenya. The hypothesis testing for the moderated relationship model led to the rejection of H02 since the p-value of .000 was less than .05, thus confirming that management information system has a significant positive moderating effect on the relationship between supplier interest and purchasing consortia at the county referral hospitals in the coast region of Kenya. The researcher recommends that county referral hospitals should embrace and consider supplier interest because it influences the purchasing consortia. Unique Contribution to Theory, Practice and Policy: The researcher also recommends that the county referral hospitals should invest in management information system because it has a significant positive moderating effect on the relationship between supplier interest and purchasing consortia at the county referral hospitals in the coastal region of Kenya.
... The resource-based view or resource-based theory (RBV) of the firm asserts that corporate performance depends on firm's specific capabilities and resources that are heterogeneously distributed within the industry. As propounded by Barney (1991), the theory states that a firm can harness their resources to achieve competitive advantage in a free market system. Resources refer to assets, processes, knowledge, attributes, and information that the firm has and control that underlie the firm's choice of strategies to improve its effectiveness and efficiency (Barney, 1991). ...
... As propounded by Barney (1991), the theory states that a firm can harness their resources to achieve competitive advantage in a free market system. Resources refer to assets, processes, knowledge, attributes, and information that the firm has and control that underlie the firm's choice of strategies to improve its effectiveness and efficiency (Barney, 1991). Resources are inputs in the business process that help the firm to explore opportunities in, and assuage threats from, the environment (Sauerhoff, 2014), When effectively deployed the resources form a strategic value for the firm and result in improved performance. ...
Manufacturing firms’ financial performance is anchored on their respective capital expenditures. Extant studies have not conclusively agreed on the implications of respective capital expenditures on the firms’ financial performance. This study sought to contribute to the discourse by examining the implications of expenditures in economic capital on financial performance of listed manufacturing firms in Nigeria. The study is quantitative, combining descriptive and inferential approaches. A sample of 33 firms, with their annual reports from 2008 to 2022, was surveyed. Panel data from the firms’ annual reports were analysed using generalized least squares regression on STATA. Three hypotheses were tested. Results show that firms’ expenditures in economic capital do have important positive implications for financial performance of the manufacturing firms. Expenditures in research and development displayed the highest positive and significant effect, while expenditures in technological innovation and additions to fixed assets showed positive but insignificant effects on the firms’ financial performance. The a-priori expectation that all three components of sustainable expenditures on economic capitals have positive effects on the firms’ financial performance was met. The study concludes that sustainable expenditures in economic capitals are important for improving financial performance of firms. This suggests that listed manufacturing firms in Nigeria strengthen their policy commitment to consistently engage in research and developments, technological innovations and maintenance of a robust asset structure. The study recommends increased expenditures in technological innovation and fixed assets for the manufacturing firms, and suggests that further research seek to clarify the insignificant effects depicted by these expenditures.
... This study draws upon multiple theoretical perspectives from the fields of entrepreneurship, sustainability, and gender studies to provide a comprehensive framework for understanding the intersection of these dimensions. The theoretical foundation is grounded in three key theories and concepts: feminist entrepreneurship theory (Orser et al, 2011), resource-based view (RBV) (Barney, 1991), and institutional theory (Zucker, 1987). Building on the feminist perspectives, this theory posits that women entrepreneurs may bring unique values and practices to entrepreneurship, including a stronger commitment to sustainability (Hoogendoorn et al., 2017). ...
... It informs the examination of whether gender-related values influence solopreneurs' sustainability practices. The RBV theory, as introduced by Barney (1991), suggests that a firm's competitive advantage stems from its unique resources and capabilities. In the context of solopreneurship, resources encompass not only financial and physical assets but also intangible resources such as knowledge and skills. ...
Sustainability practices have grown to an increasing significance for entrepreneurial success, reflecting the true commitment to environmental stewardship, social responsibility, and economic viability. While sustainability and gender in entrepreneurship have been approached as independent studies, the point of confluence of both gender and sustainable solopreneurship practices has not been the focus of much research. The aim of the research was to comprehensively examine sustainable solopreneurship practices, focusing on the significant role of gender dynamics. The purposive sampling method was adopted to select 10 solopreneurs and investigate their experiences. This study used a phenomenological research design, and the data collection method includes semi-structured interviews, allowing the participants to explain in detail their motives, challenges, and strategies for practicing sustainability. The identification of the patterns and variations was conducted through thematic analyses to ensure the legitimacy of the rigor and credibility. The study found that the challenges are family expectations and gender stereotyping, while the opportunities are profitability and adaptability to market changes. Strategies that emerged for financial resilience included savings and cost efficiency through bulk purchases and energy conservation. The study has enormous implications for the design of tailored support to aid males in female-dominated businesses, access to capital and resources for them, and suggests the need for financial literacy programs and policy initiatives on sustainability practices. These provide the way forward for the above-addressed challenges in creating an enabling environment for sustainable solopreneurship.
... Resourced-Based View of the Firm For the identification of relevant firm-level determinants of firm economic vulnerability due to economic crisis, we refer to the "resourcebased view" (RBV) of the firm (Penrose 1959;Wernerfelt 1984;Barney 1991Barney , 2001Amit and Schoemaker 1993). According to this theoretical approach, critical determinants of a firm's performance are its resources (e.g., assets, human resources, etc.), as well as its capabilities for deploying and utilizing these resources in order to perform important tasks, so that performance differences among firms operating in the same environment are mainly created by differences among them with respect to available resources and capabilities. ...
... According to this theoretical approach, critical determinants of a firm's performance are its resources (e.g., assets, human resources, etc.), as well as its capabilities for deploying and utilizing these resources in order to perform important tasks, so that performance differences among firms operating in the same environment are mainly created by differences among them with respect to available resources and capabilities. Barney (1991) initially gave a wide definition of a firm's resources as "all assets, capabilities, organisational processes, firm attributes, information, knowledge, etc. controlled by a firm that enable the firm to conceive and implement strategies that improve its efficiency and effectiveness" (p. 101). ...
The economic crises constitute the most important disruptions in firms’ external environment, which have quite negative economic consequences for them, leading to significant reductions of their activities. However, the negative impacts differ significantly among firms, so it is important to identify factors that affect their magnitude at firm level, as they would provide to firms a useful basis for developing strategies for increasing their resilience to crisis. In this study, based on the resource-based view (RBV) of the firm as well as the dynamic-capability view (DCV) as theoretical foundations, we develop a set of research hypotheses concerning the effects of a series of factors on firm overall crisis economic vulnerability as well as crisis vulnerability with respect to several investment categories. We test these hypotheses using Greek firm data for the crisis period 2009–2014. We find evidence for a vulnerability reducing effect of new forms of “organic” workplace organization and human capital endowment, the latter effect particularly for investment in R&D and innovation, a stabilizing effect of a series of dynamic capabilities, a stabilizing effect of export activities, a de-stabilizing role of crisis-induced liquidity restrictions, and a de-stabilizing effect of crisis-induced decrease of overall private and public demand.
... In addition, the Core competency theory advocates for firms to have valuable strategies that competitors cannot imitate, copy, or reuse, but add value to the end consumer. Barney, (2021) has indicated that organizations should orient their strategies to tap into core competencies and vie the competency strategy as a fundamental basis for value addition. Consortium arrangements, in which companies work together to share and pool resources, often lead to increased productivity and the development of sustainable competitive advantages. ...
... Notably, the analysis revealed a strong positive relationship of 0.470 between supplier capacity and purchasing consortium, signifying statistical significance at the 0.05 level (2-tailed). These findings resonate with the research conducted by Barney (2021), who similarly documented a robust positive Pearson's correlation between supplier capacity and purchasing consortium. ...
The purpose of this study was to determine the influence of supplier capacity on Purchasing Consortia at County Referral Hospitals in the Coast Region, Kenya. The study was done in the County Referral Hospital in the Coast Region, Kenya. Theoretically, the study was anchored on competency theory, MacNeil Relational Theory. The study used the descriptive research design in undertaking this study. The study population comprised of 212 officials drawn from across the county referral hospitals in the coastal region of Kenya. The stratified random sampling technique resulted into having a total sample size of 139 units of analysis. Data was collected by use of questionnaires, analyzed, and presented scientifically in tables and graphs. The study findings revealed that Supplier Capacity has a significant positive influence on the purchasing consortium. The study recommends that government and regulatory bodies in the health sector prioritize initiatives aimed at fostering collaboration and knowledge sharing among healthcare organizations. The study also recommends that government and regulatory authorities invest in capacity-building initiatives to equip healthcare organizations with the necessary skills and resources to effectively engage in collaborative procurement endeavors.
... An old and trusted concept in strategic management, Resource-Based Theory (RBT) looks inward at an organization's strengths and resources to see how they might stay ahead of the competition (Barney, 2021). Having a firm grasp on the specific assets and competencies that provide one company an advantage over another is vital in the telecoms industry. ...
... Resource-Based Theory suggests that for a resource to contribute to sustained competitive advantage, it must be valuable, rare, inimitable, and non-substitutable (Barney, 2021). These requirements are met in the telecom industry via the strategic use of information security resources. ...
Purpose: In the competitive landscape of Rwanda's telecommunication industry, information security has emerged as a critical factor in maintaining and enhancing market position. The general objective of this study was to investigate the effect of IoT implementation strategies on competitive edge in the Rwandan telecommunication landscape. Specifically, the study determined the effect of information security on competitive edge in the Rwandan telecommunication landscape. Methodology: The research design that the study utilized is descriptive survey research. The target population for this study comprised 187 participants who are currently employed as staff at MTN Rwanda. A sample of 128 were determined using Slovin’s Formula. A stratified sampling technique was employed in the investigation. In this project, questionnaires with closed-ended questions and a five-point Likert scale style was used as the main data gathering instruments. The information was gathered via secondary data collected from a variety of sources, with individuals being requested to fill out questionnaires that were provided. Thirteen individuals made up the sample size for this initial inquiry. Using Cronbach's Alpha, the researcher conducted the reliability assessment. A group of accomplished professionals in the area of strategic management assessed the reliability and validity of the instruments. Using SPSS version 25, the researcher conducted a comprehensive analysis of the data using both qualitative and quantitative methods. The study used a correlation coefficient and a linear regression model. Data presentation was done in Tables and figures. Findings: The regression model reveals several significant predictors of competitive edge within the telecommunications landscape. Notably, integration with existing systems emerges as a substantial negative predictor (β = -0.395, p < .001), indicating that challenges in integrating IoT technologies with legacy systems may hinder competitiveness. In conclusion, the regression analysis highlights the critical role of integration with existing systems and data analytics in shaping competitive edge within the Rwandan telecommunications landscape. While challenges in integrating IoT technologies with legacy systems may pose obstacles, the transformative potential of data-driven decision-making emerges as a significant driver of organizational performance and competitiveness. Unique Contributions to Theory, Practice and Policy: Based on the findings, it is recommended that telecommunication companies in Rwanda prioritize investments in data analytics capabilities to enhance competitive edge and strategic decision-making. Additionally, efforts should be directed towards streamlining integration processes with existing systems to mitigate barriers and capitalize on the potential of emerging technologies, thus fostering innovation and sustainable growth within the industry. This study contributes to theory by providing empirical evidence on the impact of IoT adoption on competitive advantage in the telecommunications sector, particularly within a developing country context. Practically, it offers actionable insights for MTN Rwandacell Plc to enhance operational efficiency and service delivery, while also informing policymakers on the regulatory frameworks needed to support IoT innovation in Rwanda.
... There are numerous conditions and goals, such as survival, growth, reputation, and financial performance, that can motivate firm behaviors. These conditions and goals are affected by issues such as competitor resource differences (Barney, 1991), competitor attacks (Porter, 1985), human resource needs (Black et al., 2024), and market acceptance (Moore, 2014). Additional motivation can come from a desire to be similar to competitors when high uncertainty is present (Petkova, 2016). ...
... The AMC highlights that firms that are aware and motivated to engage in a behavior must still be capable of the behavior before they can engage in it (Chen, 1996;Turner and Pennington, 2015). Organizational resources create capabilities commonly viewed as a prerequisite for effective action (Barney, 1991;Siemsen et al., 2008). Included in organizational resources is the knowledge necessary to guide an action, with the knowledge-based view positing that knowledge is the ultimate resource (Grant, 1996;Spender, 1996). ...
Firms in developed countries frequently struggle with low-cost foreign competition. This is somewhat perplexing given the historical advantages firms have in developed countries. We examine how these firms respond to market entry by low-cost foreign competitors. Their responses and outcomes vary depending on the government’s degree of intervention. Using the global steel industry as an example, the awareness, motivation, capability (AMC) framework is used to structure firm decision-making. We find that applying the AMC suggests that firm responses depend on government trade interventions, thus recommending firms and their governments integrate their efforts to enhance beneficial outcomes for firms and society.
... Resilience (R) is the most used management framework in healthcare organizations, defined as the capacity to absorb shocks while maintaining function, focusing on two categories i.e., robustness and rapidity [7,9]. The strategic "insideout" Resource-based view, focus on how the resources on hand could be used to the market "inside-out" and have developed during time to the organization's ability to renew competences to adjust to changes in the surroundings, and include understanding of the requirements from the market or environment ("outside-in") [10]. The different flow of information and the constant need for learning and development in an unknown and continuously changing environment could make the hierarchic system of SuC too static and less successful. ...
... DCs focuses both on the perspective of how the market (outside) influences the organization (inside) and the perspective that the organization needs to adapt to the chosen market [16], but also to the inside-out perspective which values the organization's knowledge and resources in the choice of strategy and marketplace [10,17]. Teece, et al. [18], considered founders of the DC framework, describe the resource based view as static, when organizations in the short term are stuck with existing knowledge and structure. ...
Introduction
This paper presents a structured review of the use of crisis management, specifically examining the frameworks of surge capacity, resilience, and dynamic capabilities in healthcare organizations. Thereafter, a novel deductive method based on the framework of dynamic capabilities is developed and applied to investigate crisis management in two hospital cases during the COVID-19 pandemic.
Background
The COVID-19 pandemic distinguishes itself from many other disasters due to its global spread, uncertainty, and prolonged duration. While crisis management in healthcare has often been explained using the surge capacity framework, the need for adaptability in an unfamiliar setting and different information flow makes the dynamic capabilities framework more useful.
Methods
The dynamic capabilities framework’s microfoundations as categories is utilized in this paper for a deductive analysis of crisis management during the COVID-19 pandemic in a multiple case study involving two Swedish public hospitals. A novel method, incorporating both dynamic and static capabilities across multiple organizational levels, is developed and explored.
Results
The case study results reveal the utilization of all dynamic capabilities with an increased emphasis at lower organizational levels and a higher prevalence of static capabilities at the regional level. In Case A, lower-level managers perceived the hospital manager as brave, supporting sensing, seizing, and transformation at the department level. However, due to information gaps, sensing did not reach regional crisis management, reducing their power. In Case B, with contingency plans not initiated, the hospital faced a lack of management and formed a department manager group for patient care. Seizing was robust at the department level, but regional levels struggled with decisions on crisis versus normal management. The novel method effectively visualizes differences between organizational levels and cases, shedding light on the extent of cooperation or lack thereof within the organization.
Conclusion
The researchers conclude that crisis management in a pandemic, benefits from distributed management, attributed to higher dynamic capabilities at lower organizational levels. A pandemic contingency plan should differ from a plan for accidents, supporting the development of routines for the new situation and continuous improvement. The Dynamic Capabilities framework proved successful for exploration in this context.
... In the introduction stage of resource-based view, Wernerfelt (1984) mention about the attention to the resources rather than the commercial final products. Barney (1991) develop the antecedents of competitive advantage is by having valuable, rare, inimitable, and non-substitutable resources. In the growth stage, Kogut & Zander (1992) for invention, innovation, and capabilities resources. ...
... Resource-Based theory explains why the firms perform differently by the premise of heterogeneity of resources (Barney, 1991;Wernerfelt, 1984 In the platform-mediated networks context, the valuable resource is not only internal resource that fully controlled by the firm but also external resources such as platform complementors or supplier side including their indirect network effect (Eisenmann et al., 2011). Hence, the dynamic capabilities for MSP firm needs to include both internal and external capabilities to achieve longer competitive advantage. ...
_Peer-to-peer or multi-sided platform has created disruptions in various industries in the past few years. In this matter, the crowd within the platform has significant role to create disruption. However, there are limited studies in disruptive innovation theory that examines the ex-ante disruptive innovation in platform-mediated networks since it still conducts the perspective of linear product-market supply and demand. By using entrepreneurial opportunities (discovery vs creation) and dynamic capabilities (aggregating vs integrating) theory, this research proposal wants to examine the antecedents of disruptive innovation trajectory (low-end vs new-market) that contributes to new Internet venture growth. Hence, it can contribute to the prediction of disruptive innovation trajectory through entrepreneurial perspective in the platform-mediated networks firm context._ _Keywords: crowd resources, peer-to-peer platform, platform disruption, disruptive innovation, network effect, entrepreneurial opportunities, discovery, creation, dynamic capabilities, aggregation, integration _
... Originating from Penrose (1959) and later developed by Barney (1991), the RBV posits that firms achieve competitive advantage through the strategic allocation and leveraging of their internal resources and capabilities. In the context of intellectual property laws and innovation, this theory suggests that firms can use IP assets as strategic resources to gain competitive advantage and drive innovation. ...
Purpose: The aim of the study was to analyze influence of intellectual property laws on innovation in the technology Sector in South Korea Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Intellectual Property Laws have played a crucial role in fostering innovation within South Korea's technology sector. The strategic implementation of patent rights and utility models has been instrumental in the country's rapid technological advancement since the mid-1980s. This legal framework has not only protected but also incentivized the creation of new technologies, propelling South Korea to become a global leader in innovation. Unique Contribution to Theory, Practice and Policy: Schumpeterian innovation theory, resource-based view (RBV) of the firm & institutional theory may be used to anchor future studies on intellectual property laws on innovation in the technology Sector. Technology firms should adopt proactive strategies to navigate the intellectual property landscape effectively and leverage legal frameworks to foster innovation. Policymakers should prioritize the development of robust intellectual property regimes that balance incentives for innovation with the promotion of competition and access to knowledge.
... The optimization and configuration of value activities are key to building competitive advantage. Starting from the resource-based view, Barney (1991) believed that the scarce, inimitable, and non-substitutable resources possessed by an enterprise are the decisive factors in forming a sustainable competitive advantage. Peteraf (1993) further pointed out that resource heterogeneity, ex-ante limits to competition, ex-post limits to competition, and imperfect resource mobility are the four cornerstones for enterprises to establish competitive advantage based on resources. ...
In the digital economy era, enterprises face unprecedented challenges and opportunities driven by the rapid advancement of digital technologies. To thrive in this dynamic environment, enterprises must continuously innovate their business models to create and capture value in new ways. This paper explores the relationship between business model innovation and corporate competitive advantage in the context of digital transformation. Drawing on the resource-based view, dynamic capabilities framework, and other theoretical perspectives, this paper examines the characteristics, mechanisms, and strategies of business model innovation in the digital age. Through a comprehensive literature review and analysis of representative cases, we identify three key trends shaping business model innovation: digitalization, platformization, and intelligentization. We argue that enterprises need to leverage these trends to design customer-centric value propositions, build digital capabilities, construct open and collaborative value networks, and foster an agile and innovative organizational culture. Our findings highlight the importance of value creation, value capture, and value network effects in driving competitive advantage through business model innovation. We propose a framework that integrates these mechanisms with the core components of business models, providing a holistic and systemic view of business model innovation in the digital economy. We also discuss the implications of our research for theory and practice, emphasizing the need for further studies on the dynamics and outcomes of business model innovation in different contexts and industries. This paper contributes to the growing literature on business model innovation and competitive strategy in the digital age. By bridging the gaps between different theoretical perspectives and providing actionable insights for practitioners, we aim to advance the understanding and application of business model innovation as a key driver of corporate competitive advantage. Our research suggests that enterprises that can effectively align their business models with the evolving digital landscape will be better positioned to create and sustain superior performance in the face of increasing complexity and uncertainty.
... For resources to confer a competitive advantage, they must meet specific criteria: value, rarity, inimitability, and non-substitutability [three]. Barney (1991) classifies resources into three main types: physical capital (comprising physical assets, technology, and plant and equipment), human capital (encompassing skills, experience, and knowledge), and organizational capital (including formal structures). However, Brumagim (1994) contends that all firms possess a diverse array of resources and capabilities. ...
Adaptation to climate change has emerged as a significant priority for policy and research efforts. This study delves into the multifaceted issue of climate change adaptation within Small and Medium-sized enterprises (SMEs) operating in Vietnam. Beyond merely mitigating vulnerability, these enterprises are actively seeking out avenues for green innovation, using adaptive diversification strategies to navigate the challenges posed by a changing climate. Adaptation to climate change has emerged as a significant priority for policy and research efforts. This study focuses on the adaptation strategies of SMEs in Vietnam in response to climate change. It not only aims to mitigate vulnerability but also explores green innovation opportunities through adaptive diversification. The research investigates the influence of human resources on the ability to adapt to diversification, with organizational adaptive culture acting as a mediating variable within the theoretical framework of the Resource-Based View (RBV). Through an analysis of survey data from 280 SMEs in Vietnam using Structural Equation Modeling (SEM) in SmartPLS4, the study reveals that both human resources and adaptive culture positively impact SMEs' adaptation to climate change. These findings provide valuable insights for management and policy, underscoring the importance of investing in human resources and nurturing adaptability culture within SMEs to effectively tackle climate change challenges.
... Resource-based view (RBV) and dynamic capabilities theory are employed as the major theoretical background to explain how IT resources contribute to a firm's competitive edge and how a firm uses its IT resources to achieve superior performance Wade & Hulland, 2004). RBV suggests that firms acquire competitive advantage and superior performance through resources and capabilities that are valuable, rare, inimitable, and non-substitutable (Barney, 1991). A firm's resources include tangible and intangible assets which are either owned or controlled by the firm. ...
The business value of cloud computing has always been concerned by the academic. From the contingent perspective, the business value is affected by various factors. However, the impact of the objective environment is rarely being discussed. In especial, concerning the ambidextrous innovation value of cloud computing, how to develop targeted cloud-based strategies according to the environment so as to achieve the innovation value better remains unclear. By conducting Propensity Score Matching and Difference-in-Differences-in-Differences analysis on the secondary hand performance data of 182 pairs of listed companies, this study investigates how the exploitative and explorative innovation values of cloud computing are impacted by the three environmental characteristics, namely dynamics, munificence, and complexity. The results show that cloud computing significantly promotes exploitative innovation value in less dynamic environment and explorative innovation in high complex environment. Nevertheless, munificence explains a less significant proportion of the variance in ambidextrous innovation performance. This research empirically reveals the moderation effect of environmental characteristics on the ambidextrous innovation value of cloud computing which enriches the research stream and conclusions of cloud computing business value. It implicates that the cloud investors should develop exploitation-oriented strategy under less dynamic environment and exploration-oriented strategy under high complex environment.
... ISSN 2789-2476Vol.4, Issue 2, No.4 pp 37-48, 2024 Gender diversity can be seen as a strategic resource that contributes to the firm's competitive edge (Barney, 1991;Flabbi, 2019). ...
Purpose: The aim of the study was to analyze the gender diversity in corporate leadership and firm financial performance in Germany. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Gender diversity in corporate leadership is consistently linked to higher firm financial performance. Companies with more women in executive roles tend to show increased profitability and better financial returns. Diverse leadership teams bring varied perspectives that enhance decision-making and innovation. They also attract top talent more effectively, contributing to sustained competitive advantage. Unique Contribution to Theory, Practice and Policy: Resource-based view (RBV), social identity theory & agency theory be used to anchor future studies on gender diversity in corporate leadership and firm financial performance in Germany. Organizations should design and implement leadership development programs that specifically aim to identify and nurture female talent. Policymakers should develop and enforce guidelines that encourage gender diversity in corporate leadership.
... Zainuddin (2016) stated that competitive advantage grows fundamentally by releasing more value from the company so that the company is able to create more consumers, of course with costs incurred according to the company's capabilities. Competitive advantage is a company's ability to continue to maintain and defend what it has by forming and empowering the useful resources it has and utilizing the company's capabilities or abilities that are superior or excellent, and cannot be imitated by other companies (Barney 1991). Indonesia itself, as one of the largest countries in the Southeast Asia region, has a large competitive market, has an economic level that is able to support the needs of society and also acts as one of the countries with the largest number of MSMEs in the Southeast Asia region. ...
In this era of increasingly rapid technological progress that will encourage innovation by business actors in marketing their products, one thing that can be done is to carry out a marketing transformation, from conventional marketing to digital marketing. Also the competitive advantage and managerial capabilities of the coffee shop business continue to be improved. The aim of this research is that radical innovation and competitive advantage influence the performance of MSMEs through management capability in coffee shop businesses. Quantitative method with data collected by filling out an online questionnaire (Google form) with a total of 124 respondents selected using probability sampling with the criteria of MSME coffee shop business six months to one year running and the data was analyzed using SEM-PLS analysis. This analysis is to measure the results of each indicator of radical innovation, competitive advantage, management capability and MSME performance and to see the results in developing the coffee shop business. The results of this research show that radical innovation and competitive advantage have a significant effect on the performance of MSME coffee shop businesses through the mediating variable management capability. Keywords: coffee shop business; radical innovation; competitive advantage; management capability; MSME performance
... The resources that enable companies to gain competitive advantage are scarce and non-substitutable. Resources can be both tangible and intangible [Barney, 1991]. According to NONAKA et al [2000], knowledge and know-how are considered intangible resources, for example, skills [Hamel and Prahalad, 1990], and the ability to absorb these resources [ZAHRA and GEORGES, 2002]. ...
... The studies of this group can be considered as the foundation of the academic field of service innovation. They discuss firms that use a combination of their resources such as market orientation (Jaworski & Kohli, 1993;Kohli & Jaworski, 1990) and innovation (Schumpeter's "creative destruction") to create a sustainable competitive advantage (Barney, 1991), the new value created by innovation (Cohen & Levinthal, 1990), and compare the success and failure of innovation investments by market-oriented service firms (Avlonitis, Papastathopoulou, & Gounaris, 2001). Based on resource-based theory or dynamic capability theory, most of these studies discuss the strategies of companies that use technology in innovation to gain competitive advantage (Zhou, Yim, & Tse, 2005). ...
Service innovation has been seen as a significant source of competitive advantage between the market and the business since its inception over two decades ago. Due to the growing interest in service innovation, this study delves deeper into the service innovation phenomenon to understand how service innovation has emerged and provides a comprehensive view of the phenomenon development of service innovation. A review of a systematic investigation of the evolution of "service innovation" in various sectors by conducting a comprehensive analysis (qualitative and quantitative) using 850 publications from the Web of Science was published during the 1996-2022 period. The quantitative method used was bibliometrics analysis (citation and co-citation) by VOS-viewer software. The results show that five clusters are distinguishable. Each cluster shows different characteristics of the service innovation sector, including innovation in market-oriented service companies, new service development, service innovation process, adding service value in manufacturing enterprises, and co-creator of value in services. Specifically, we analyse which research flows are relevant to service innovation and compare these themes over time. In-depth analysis and discussion of the five themes have helped to uncover two more sub-themes: service innovation and service innovation in brand engagement that scholars have been interested in and have developed. This paper supports the assertion that service innovation has an interdisciplinary theoretical foundation and that the structure of the service innovation research platform has changed significantly over time.
... The company's Resource-Based View (RBV) places a strong emphasis on the contribution of internal resources and competencies to gaining a competitive edge (Barney, 1991). RBV offers insights into how businesses use their financial, human, and technology resources to create and implement creative fintech solutions in the context of fintech. ...
... Within the framework of RBV, resources represent "tangible and intangible entities available to the firm that enable it to produce efficiently and/or effectively a market offering that has value for some market segment(s)" (Hunt, 1997, p. 64). RBV argues that competitive advantage and economic performance improvement accrue to firms possessing and controlling valuable yet rare resources (Barney, 1991). Recent theoretical and empirical developments in the RBV literature suggest that valuable and idiosyncratic firm resources are essential, but their potential for enhancing competitive advantage and financial performance can be realized when they are channeled to support or drive value-creation activities (Sirmon, Hitt, & Ireland, 2007;Sirmon, Hitt, Ireland, & Gilbert, 2011). ...
... Enterprises are the main body of social responsibility. Social responsibility refers to the active engagement in socially responsible behavior that goes beyond the economic and legal requirements of the firm (Wood, 1991), and refers to the need for firms to take social responsibility for employees, consumers, suppliers, communities, and the environment in addition to generating profits and taking economic responsibility for shareholders (Clarkson, 1995), The resource-based theory suggests that whether a company takes more social responsibility depends on its own resources and capabilities (Barney, 1991;Grant, 1991;Hart, 1995), and that it is difficult for a company to meet the demands of all stakeholders at the same time due to limited financial resources. Resource dependence theory suggests that among many stakeholders, a firm will first focus on and deal with the interests of those who hold key resources to ensure its continued survival, and effective corporate governance is a necessary factor in the firm's goal of maximizing profits. ...
The impact of resource dependence on social economy and environment lacks empirical evidence at the micro level. This article uses data from A-share listed companies from 2011 to 2020 to construct an econometric model to empirically test the impact of resource dependence on ESG performance of enterprises. We find that the corporate ESG scores in regions with high resource dependence will decline. After a series of robustness tests such as replacing the dependent variable, controlling province time fixed effect, eliminating extreme effects, and eliminate provinces with high resource dependence, the conclusion of this article still holds. In addition, we alleviate the endogeneity problem caused by OLS estimation by constructing a dynamic panel model. Further analysis indicates that there are differences in the effect of resource dependence on enterprises sub-scores, with a significant negative impact on the environmental dimension and social dimension, and no significant impact on the governance dimension. It has a greater impact on the ESG score of SOEs and has no significant impact on non-SOEs. The empirical results of this paper enrich the research on the influencing factors of enterprise ESG performance, and further expand the research framework of the socio-economic consequences of enterprise resource dependence.
... Firms can form their own knowledge base through knowledge diffusion, accumulation, and collisions between internal and external knowledge. Moreover, they can continuously enrich their knowledge base to enhance their core competitiveness (Barney, 1991). Knowledge is fundamental to technology-based firms. ...
Green technological innovation (GTI) has the dual externalities of promoting technological advancements and facilitating environmental protection. GTI assists manufacturing clusters respond to emission reduction and environmental protection challenges. Non-geographic proximity is vital in promoting knowledge sharing among organizations, facilitating GTI’s effective implementation; in this regard, a gap exists in the current literature. Using data from 330 cluster firms in China’s fine chemical industry and drawing on the knowledge-based view, this study explores how cognitive and social proximities affect GTI in cluster firms. The key findings are as follows: First, cognitive and social proximities are crucial factors driving GTI. Second, knowledge sharing mediates the relationship between proximity and GTI. Third, technological distance positively moderates the relationship between social proximity and green product innovation, and that between social proximity and end-of-pipe technological innovation. These findings have critical implications for cluster firms looking to cultivate network relationships based on distinct types of GTI.
... Keunggulan ini akan menjadi keunggulan berkelanjutan ketika pesaing yang ada saat ini ataupun pesaing baru tidak mampu meniru atau menerapkan (Rachmat, 2014). Hal ini ditegaskan oleh Barney (1991) ...
This study aims to determine and analyze the influence of the external environment and the internal environment on the performance of SMEs through competitive advantage in SMEs in Sorong City - West Papua. The population in this study were SMEs in Sorong City which included food and beverage, metal and service industries, forest products and furniture, building materials, and handicrafts totaling 539 SMEs, and the samples in this study were 135 SMEs. sampling using proportional cluster random sampling. Data analysis methods include descriptive analysis and quantitative analysis with analysis tools using SEM (Structural Equation Modeling) and AMOS (Analysis Moment of Structural) programs. The findings of this study are the external environment is proven to have a negative and significant effect on the performance of SMEs; the external environment is proven to have a negative and significant effect on SME performance mediated by competitive advantage; the internal environment is proven to have a positive and significant effect on the performance of SMEs; the internal environment is proven to have a positive and significant effect on SME performance mediated by competitive advantage. Keywords: external environment, internal environment, competitive advantage, performance of SMEs.
... CA has been defined by many scholars from a variety of perspectives. For example, Barney (1991) described CA as a reflection of an organization's unique resources which differentiate it from its competitors. Later, Freiling et al. (2008) mentioned that organizations with valuable, rare, superior, and complementary resources and capabilities may use these to distinguish themselves from their competitors and, accordingly, achieve CA. ...
This study aims to present a conceptual framework that brings together reward and recognition, and customer focus (organizational factors), which can help organizations achieve a competitive advantage (CA) through applying Lean Six Sigma (LSS) in healthcare. A critical review of the models of reward and recognition, and customer focus, LSS, and CA measures was performed to create the conceptual framework. A synthesis of the existing literature provides the basis for the development of the conceptual framework of the LSS measures. The independent variables are reward and recognition, and customer focus. The mediator variable in this framework is LSS, and CA is employed as the dependent variable. The framework offers a systematic method of evaluating the determinants of LSS in healthcare. Accordingly, the newly developed conceptual framework identifies and describes the direct associations between organizational factors and CA in the healthcare (HC) sector and the indirect associations through LSS. This study is important for professionals working in HC seeking to achieve CA in hospitals. Additionally, this study is valuable to researchers and academics working in the LSS field as it explores the importance of LSS implementation in hospitals. In addition, limited studies have been conducted to explore the status of LSS implementation in HC and this study is expected to provide theoretical contributions to the LSS approach in healthcare.
... Developing and implementing a given strategy necessitates a wide range of resources and talents critical to creating a sustainable competitive advantage. These attributes are the foundation for developing and implementing strategies that, in turn, assist the company in achieving long-term competitive benefits and improving efficiency and effectiveness (Barney, 1991). ...
This paper investigates the effectiveness of export promotion programs (i.e., information, experiential, and financial supports) towards small-medium enterprises (SMEs) export performance. The research framework is guided by the Research-Based View. A sample of 116 Malaysian small and medium size exporter firms was tested by using the model. The data were analyzed through a partial least square structural equation modelling approach. Study results show that all three supports in the export promotion program improve SMEs’ export performance with the mediating effect of network role. The findings show that the implication of the impact of export promotion programs on export performance is justified. Besides, it also validates the importance of networking in using support from government agencies. The findings can also help SMEs engage with foreign buyers or trade organizations to profit from trade fairs and trade exhibits, promoting promotion programs on a global scale. Last but not least, government agencies can also strengthen international trade relations and foreign diplomacy for exporters to boost their trade competitiveness.
... godine o poduzetničkom kontekstu Bosne i Hercegovine koji upućuju na nedostatak savjetovanja i mentorstva prilikom pokretanja poduzetničkih pothvata, poglavito onih usmjerenih pisanju projekata, poslovnih i marketinških planova te unapređenju upravljačkih sposobnosti (Mujkić, 2021, 30). (Barney, 1991) Održiva konkurentska prednost veže se uz poslovne koncepte tržišne orijentacije, vrijednosti, poslovnih mreža i marketinga odnosa (Hoffman, 2000, 8-9) ...
Sustainable competitiveness is essential for the initial survival and long-term success of a company. Looking at competitiveness through the lens of sustainability, business success is not measured solely by profitability and market share, but by consumer satisfaction and loyalty. Meeting consumer expectations effectively attracts attention, creates long-term demand, and thus market survival and success. In order to examine the perception of new entrepreneurs about the basic determinants of sustainable competitiveness, a combined qualitative and quantitative research methodology was
used. The research is based on the assumption that new entrepreneurs in Bosnia and Herzegovina during the critical first three years of business focus on quantitative factors and indicators of market success, while neglecting consumer satisfaction and loyalty as fundamental determinants of the marketing concept. Quantitative research was conducted using a questionnaire that surveyed 156 owners and/or managers of
new business ventures in Bosnia and Herzegovina. 12 in-depth interviews with the owners of new entrepreneurial ventures were also conducted to ensure a deeper understanding of the meaning of the data collected by the questionnaire. The presented research results can help when providing appropriate advisory and educational services to novice entrepreneurs in the territory of Bosnia and Herzegovina.
Keywords: sustainable competitiveness, factors and measures of market success, marketing conception, new business ventures, Bosnia and Herzegovina
... With regard to the effects that green innovation can bring to enterprises, from a micro point of view, green innovation can help enterprises to reduce environmental costs and seize green competitive advantages [26], further stimulate the research and development and production of green differentiated products and effectively enhance the green competitiveness of enterprises, which is conducive to achieving a "win-win" situation between enterprise competitiveness and environmental protection [4,27]. From a macro perspective, green innovation is an important element in coordinating economic growth with environmental protection [28]. ...
In the light of the fact that the current green wave is in vogue and the world is entering a “green” competition era, the green transformation of enterprises is to be found in urgent need. Taking China, A-share listed companies from 2011 to 2020 as the research sample, this paper empirically finds that Directors’ and Officers’ Liability Insurance (D&O Insurance) has a promoting effect on enterprise green innovation, and the longer the introduction time, the more obvious the effect is, which is still valid after alleviating endogenous problems and carrying out a robustness test. Through further research, this paper additionally discovers that D&O Insurance has a significant and relatively stable promoting effect on the invention-type green innovation and utility model green innovation; the promotion effect is more obvious in large-scale enterprises; it is the risk tolerance level that contributes to strengthening the effect. The research results play a role as a catalyst for the circulation of D&O Insurance, provide relevant suggestions for enterprises, regulators and the government to promote green innovation, and help China achieve a crucial position in the "green" competition era.
... According to the theory, which was put forth by [26], variations in the resource endowments of firms within the same industry might account for performance discrepancies. According to [27], resources are assets that a company uses to carry out its plans. These assets might be intangible, such as software and organizational procedures, or tangible, such information communication equipment. ...
Public procurement related expenditure is approximately fifty to seventy percent of the national budget of developing countries and accounts for almost a third of the gross domestic product. Cognizant of the significant funds committed in public procurement, the quest for value for money is critical. This study sought to determine the effect of procurement practices on value for money in State Corporations in Kenya. Specifically, the study investigated the effect of procurement planning, supplier sourcing, supplies management and E-procurement on value for money. Data collected from 87 State Corporations in Kenya was used in this study. The results of the study indicated that procurement planning, supplier sourcing, supplies management and e-procurement positively and significantly affect the value for money in state corporations in Kenya. The study concluded that proper procurement practices positively and significantly affect the value for money in state corporations in Kenya. The findings of this study contributes to literature by providing an empirical examination on the impact of procurement practices and value for money from a developing country perspective.
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
... Recent studies highlight that the alignment of HRM with SCM strategies enhances overall supply chain resilience, agility, and competitiveness (Stank et al., 2021;Sanders & Swink, 2022). The concept of integrating HRM with SCM is founded on the resource-based view (RBV) of the firm, which posits that human resources are strategic assets that can provide a competitive advantage (Barney, 1991). In the context of SCM, this perspective underscores the importance of effective human resource practices in fostering supply chain capabilities such as flexibility, responsiveness, and innovation (Hohenstein et al., 2019). ...
This study investigates the strategic response of Durban's healthcare industry to the COVID-19pandemic, focusing on the development of innovative strategies that could provide a competitiveadvantage. Through a robust mixed-methods approach combining literature review and empiricalanalysis, the research identifies key adaptive strategies employed by healthcare organisations, such asstrategic partnerships, digital transformation, and supply chain resilience. The findings reveal thecritical role of agile strategic planning in navigating the unprecedented challenges posed by thepandemic, contributing to the body of knowledge by demonstrating the practical application ofstrategic management theories in crisis conditions. This study underscores the importance of flexibility,innovation, and stakeholder collaboration in crafting strategies that not only address immediatechallenges but also position organizations for post-crisis resilience and growth
The computerized time has introduced in a insurgency within the field of key promoting, with
businesses adjusting to computerized change at an uncommon pace. This writing study paper
investigates the energetic scene of computerized change inside the domain of key showcasing, shedding
light on later patterns, challenges, and the significant implications for firms. Drawing on the hypothetical
establishments and models within the field, we set the arrange for an in-depth investigation of
computerized promoting patterns. We exhibit the foremost later and significant methodologies embraced
by businesses and display compelling case ponders outlining fruitful computerized showcasing changes,
utilizing computerized innovations and leveraging enormous information to pick up bits of knowledge
into buyer behavior. In differentiate, the paper moreover dives into the challenges and boundaries
confronted by businesses when executing advanced showcasing methodologies. This segment highlights
the basic significance of information in personalizing promoting endeavors whereas tending to
protection and security concerns. The developing significance of Omni channel showcasing is
additionally explored, enumerating how companies coordinated their online and offline endeavors to
form consistent client encounters. All through the paper, we underline the suggestions of advanced
marketing transformation for firms, from enhancing business execution to reshaping the parts of
showcasing experts. This comprehensive study paper solidifies important experiences for businesses,
analysts, and experts looking for to get it and tackle the potential of advanced change in key promoting.
In talent state of concerns after Coid-19 pandemic software program-based equipment deployed in a company to cater to the complicated commercial enterprise processes, combine diverse commercial enterprise devices and cope with necessities of a worldwide consumer base. The conventional method of software program engineering succumbs to the converting want of consumer and era advancement. On the behest of the consumer, a software program system ought to be designed in a manner that it is going in concert with the existing person needs. Agile for instance, is a famous instance of a lifecycle used to construct smart and analytical systems. Methodological responsibility is a time period coined through Ward Cunningham to indicate the quantity of rework required to position a bit of software program into that nation which it ought to have had from the beginning. Obligation Management Model is used to hit upon Methodological responsibility. The examination pursues updated address the reason of the boost of IS lightsomeness and pleasant for detecting, finding, associated mixture and execution in a mild-footed IS. IS lightsomeness is specified in mild of the reality that the ability of associate IS to acumen changing progressively; determine it continuously; and select out and achieve a reaction continuously. Architecting associate dexterous IS can be a multifaceted and asset extreme crucial, ultimately assessment of its factors of hobby is quite desired and proper, associate hobby for lithe system is presented, this paper expects associate net commercial enterprise approach with lightsomeness, and it talks approximately its security conjointly. This system receives better on-line commercial enterprise viability and acquires to unmatched low of goings-on troubles.
Hilderts & Partner offer a Genetic Algorithm which can be e.g. used to optimize the realization order of projects in a portfolio or the requirements in a SCRUM project. There has been a developing noticeable quality on enormous data examination (BDA) in web based business lately. In any case, it remains inadequately investigated as a thought that blockades its instructional exercise and practical improvement. This position paper investigates BDA in internet business by outline on efficient revaluate of the account. The paper close partner informative structure that investigates the definitional attributes, particular qualities, types, business cost and difficulties of BDA inside the web based business landscape data Systems (IS) lightsomeness could be a blessing topic of consideration inside the IS matter of fact. The examination pursues up to date deal with the explanation of the raise of IS lightsomeness and quality for detecting, finding, related blend and execution in a light-footed IS. IS lightsomeness is laid out in light of the fact that the capacity of partner IS to acumen alter progressively; decide it continuously; and pick and accomplish a response continuously. Architecting partner dexterous IS could be a multifaceted and asset serious crucial, subsequently evaluation of its points of interest is highly wanted and proper, partner activity for lithe system is presented, this paper expects partner internet business technique with lightsomeness, and it talks about its security conjointly. This system gets higher online business viability and acquires to unequalled low of goings-on troubles.
This study examines the readiness of Jordanian-listed firms toward the application of Computer Assisted Audit Tools and Techniques (CAATTs) during the post-Covid-19 epidemic period. In particular, this study investigates the auditee perspective regarding the factors impacting the adoption of CAATTs based on the Organizational Readiness for Change (ORC) and the Technology Readiness Index (TRI) models. A cross-sectional survey was developed and distributed to 138 employees working in the accounting departments of Jordanian-listed firms. Partial least square structural equation modeling (PLS-SEM) was employed as the statistical analysis method to examine the study hypotheses. The results show a significant direct relationship of motivation for change, staff attributes, institutional resources, organizational climate and discomfort on readiness for change. Moreover, the results reveal that perceived fear of Covid-19 has a moderating effect on the direct relationship between motivation for change and readiness for change. However, the proposed relationships between optimism, innovativeness, and insecurity with readiness for change were not significant. This paper highlights the readiness toward CAATTs application from the auditee perspective rather than the external auditors. Moreover, this paper considers the changes in the work environment resulting from the Covid-19 pandemic on the motivation for change toward CAATTs. Lastly, the paper reveals the moderating role of perceived fear of Covid-19 on the influence of motivation for change on readiness to change. Hence, this paper set the basis for policymakers and practitioners toward evaluating the readiness of Jordanian-listed firms for CAATTs application.
The literature on strategy formation is in large part theoretical but not empirical, and the usual definition of "strategy" encourages the notion that strategies, as we recognize them ex post facto, are deliberate plans conceived in advance of the making of specific decisions. By defining a strategy as "a pattern in a stream of decisions," we are able to research strategy formation in a broad descriptive context. Specifically, we can study both strategies that were intended and those that were, realized .despite intentions. A research program suggested by this definition is outlined, and two of the completed studies are then reviewed--the strategies of Volkswagenwerk from 1934 to 1974 and of the United States government in Vietnam from 1950 to 1973. Some general conclusions suggested by these studies are then presented in terms of three central themes: that strategy formation can fruitfully be viewed as the interplay between a dynamic environment and bureaucratic momentum, with leadership mediating between the two forces; that strategy formation over time appears to follow some important patterns in organizations, notably life cycles and distinct change-continuity cycles within these; and that the study of the interplay between intended and realized strategies may lead us to the heart of this, complex organizational process.
The article explains a concept strategic group, who appears to be a supply side concept in that it seeks to identify grouping or structures within industries, but it is a fact based on the observed a similarity of behaviour of firms. The stragic choices on which they are based are essentially long-term in nature and costly to reserve, and result in relatively tightly drawn group structures whithin the more loosely drawn industry structure of conventional theory. The strategic groups offers a distintive slant on the identifications of relative competitive position and suggest a systematic and comprhensive way of conducting a stregths and weaknesses analysis in terms of framework of relative competitive adventage
The potential of post-contractural apportunistic behavior for improving market efficiency through intrafirm rather than interfirm transactions is examined under the assumption that vertical costs will increase less than contracting costs as specialized assets and appropriable quasi rents increase. Vertical integration protects against the risk of contract cancellation and can create market power which is not generally referred to as monopoly. Contracts used as a alternative provide economically enforceable protection against opportunistic behavior. Solutions to opportunistic behavior problems can include joint ownership of common assets and condominium ownership of services. Economies of scale are major factors in some businesses, such as insurance. The complexities of ownership relations makes it difficult to assign higher costs to either the contract or vertical-integration approach. This suggests that economic analysis should be used to identify which is most advantageous for specific kinds of activities.
A review of research from organizational behavior supported the guidelines by corporate planners: that is, use an explicit approach for setting objectives, generating strategies, evaluating strategies, monitoring results, and obtaining commitment. To determine whether these findings could be applied to strategic decision making in organizations, a review was made of all published field research on the evaluation of formal planning. Formal planning was superior in 10 of the 15 comparisons drawn from 12 studies, while informal planning was superior in only two comparisons. Although this research did not provide sufficient information on the use of various aspects of the planning process, mild support was provided for having participation by stakeholders. Formal planning tended to be more useful where large changes were involved, but, beyond that, little information was available to suggest when formal planning is most valuable. Future research should assess the formal planning process, t...
This article addresses the issues of competitive advantage and competitor imitation. It is argued that tacitness, complexity, and specificity in a firm's skills and resources can generate causal ambiguity in competency-based advantage, and thus raise barriers to imitation. Reinvestment in causally ambiguous competencies is necessary to protect the advantage. Without reinvestment, attritional effects of continued competitive action will cause decay in the barriers to imitation. From this theorizing, research propositions are suggested, which, ultimately, will lead to an improved understanding of competitive advantage sustainability.
Little systematic evidence exists on overall effects of Organization Development (OD). Thirty-five empirical studies assessing the impact of OD activities provide the basis for analysis. A typology, derived from research variables reported in the literature, is used to investigate both overall impact of OD and the differential impact of unique classes of interventions.
Donaldson's (1990) critique of organizational economics suggests four attributes of this model that make intellectual discourse and theoretical integration with traditional management theory difficult: the assumption of opportunism, different levels of analysis, the theory of motivation, and the prescriptive character of organizational economics. It is suggested that these differences are not a sufficient explanation of the response of some traditional management theorists to organizational economics. Rather than being based on these substantive differences, it is argued that the relationship between these two models has many of the attributes of an intergroup conflict. Possible responses to this intergroup conflict and the implications that these responses may have for understanding organizational phenomena are explored.
The top executive who seeks strategic success will work first and foremost at assembling a managerial team well suited to formulating and implementing strategies in the particular competitive environment faced by the firm. This article presents an analytical framework for assessing and designing top management teams. The value of the framework, illustrated in the case of an actual general manager grappling with an appraisal of his top team, lies in specifying the elements of this important process and identifying the range of issues the manager must consider.
is a measure of rationality and is defined as the extent to which organizations attempt to be exhaustive or inclusive in making and integrating strategic decisions. Results from an industry with an unstable environment indicate a consistently negative relationship between comprehensiveness andperformance. Limitations
The relationship between financial performance and characteristics of corporate planning systems was investigated/Planning systems that combined an external focus with a long-term perspective were found to be associated with superior 10-year total return to stockholders. A lagged relationship between such systems and 4-year average annual returns to investors also was identified.
The widely accepted view equates strategy making with planning, assuming that strategies are 'formulated' before they are 'implemented'. Based on the detailed tracking over time of the actions of a single project organization, strongly resemblant of an ideal type called 'adhocracy', this paper shows that strategies can 'form' in a variety of different ways: from the precedents set by individual operators, from thin streams of activity that eventually pervade an organization, from spontaneous convergence in the behavior of a variety of actors, and so on. The paper first identifies and tracks the strategies pursued by this organization across almost four decades of its history and then presents the history of the organization in terms of strategic periods. These findings are then interpreted in conceptual terms, focusing on three themes: the emergent nature of the organization's strategies and the difficulties of identifying intention in a collective context; the cycles of behavior that resulted from attempts to reconcile the concurrent needs for convergence and divergence; and the organization's quest for adhocracy and the problems this posed for the exercise of formal leadership. The paper concludes with a 'grass roots' model of strategy formation.
The need for planning in business organizations operating in today's complex environment is widely accepted. Implied is an assumption that planning improves performance. However, the empirical evidence for such a claim is thin. Since planning is an integral part of strategy formulation, the facts to confirm or refute an assumed connection between planning and performance invite attention. Our research focuses on new data from 61 companies which test this linkage and, in addition, reviews the conclusions of prior empirical studies.
This paper examines the literature on strategic groups and extends it: first, by clarifying the distinction between two alternate approaches to forming groups, emphasizing that multivariate group analysis can be used to conserve information not only summarize it as bivariate grouping does; second, by focusing attention on the importance of asymmetrical mobility barriers and competitive advantage in the process of industry consolidation and concentration; and third, by linking groups and the concept of contestability in an effort to make some progress towards explaining the evolution of industry structure.
This article surveys the theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms. Major conceptual issues are addressed, and recommendations are given for future research. Managerial implications are also discussed.
The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested. These tools are then used to highlight the new strategic options which naturally emerge from the resource perspective.
Recent evidence suggests that large multibusiness firms can enhance performance by developing and exploiting corporate level distinctive competencies. In this study of 185 industrial firms, the relationships between corporate level distinctive competencies and performance were examined across firms using different diversification strategies and having different corporate structures. The corporate level distinctive competencies/performance relationships were found to vary by type of diversification strategy but not by type of corporate structure. In addition, only a small relationship was found to exist between diversification strategy and corporate structure. The specific relationships between corporate level distinctive competencies and performance and their normative implications are explored.
The time-series behavior of ROI is examined to assess a central element of competitive markets, the lack of persistence of abnormal profits. The analysis first determines the aggregate dynamic process of ROI and then examines how strategic and market factors influence this process. Consistent with abnormal returns resulting from a disequilibrium phenomenon, a mean reverting time-series process approximates the behavior of ROI. While a variety of factors influence the persistence of return, the conditions under which market forces do not drive return back to its competitive rate seem remote, if present at all. Nonetheless, these factors can insulate a firm from competitive forces and so result in longer-term abnormal profits.
In their paper, Dierickx and Cool suggest that the strategic factor markets model developed in Barney (Barney, J. B. 1986a. Strategic factor markets: Expectations, luck, and business strategy. Management Sci. (October) 1231--1241.) cannot be applied in the analysis of sustained competitive advantages due to asset stocks accumulated over time. In this comment, it is shown that the discussion of asset stocks extends and complements, rather than limits, the strategic factor markets model. This is done by analyzing how the strategic factor markets model can be used to examine the cost of accumulating asset stocks over long periods of time, and how these costs will compare to the value of strategies that are implemented exploiting these asset stocks.
Given incomplete factor markets, appropriate time paths of flow variables must be chosen to build required stocks of assets. That is, critical resources are accumulated rather than acquired in "strategic factor markets" (Barney [Barney, J. 1986. Strategic factor markets: Expectations, luck, and business strategy. Management Sci. (October) 1231--1241.]). Sustainability of a firm's asset position hinges on how easily assets can be substituted or imitated. Imitability is linked to the characteristics of the asset accumulation process: time compression diseconomies, asset mass efficiencies, inter-connectedness, asset erosion and causal ambiguity.
Much of the current thinking about competitive strategy focuses on ways that firms can create imperfectly competitive product markets in order to obtain greater than normal economic performance. However, the economic performance of firms does not depend simply on whether or not its strategies create such markets, but also on the cost of implementing those strategies. Clearly, if the cost of strategy implementation is greater than returns obtained from creating an imperfectly competitive product market, then firms will not obtain above normal economic performance from their strategizing efforts. To help analyze the cost of implementing strategies, we introduce the concept of a strategic factor market, i.e., a market where the resources necessary to implement a strategy are acquired. If strategic factor markets are perfect, then the cost of acquiring strategic resources will approximately equal the economic value of those resources once they are used to implement product market strategies. Even if such strategies create imperfectly competitive product markets, they will not generate above normal economic performance for a firm, for their full value would have been anticipated when the resources necessary for implementation were acquired. However, strategic factor markets will be imperfectly competitive when different firms have different expectations about the future value of a strategic resource. In these settings, firms may obtain above normal economic performance from acquiring strategic resources and implementing strategies. We show that other apparent strategic factor market imperfections, including when a firm already controls all the resources needed to implement a strategy, when a firm controls unique resources, when only a small number of firms attempt to implement a strategy, and when some firms have access to lower cost capital than others, and so on, are all special cases of differences in expectations held by firms about the future value of a strategic resource. Firms can attempt to develop better expectations about the future value of strategic resources by analyzing their competitive environments or by analyzing skills and capabilities they already control. Environmental analysis cannot be expected to improve the expectations of some firms better than others, and thus cannot be a source of more accurate expectations about the future value of a strategic resource. However, analyzing a firm's skills and capabilities can be a source of more accurate expectations. Thus, from the point of view of firms seeking greater than normal economic performance, our analysis suggests that strategic choices should flow mainly from the analysis of its unique skills and capabilities, rather than from the analysis of its competitive environment.
This paper presents a model of the strategic process concerning entrepreneurial activity in large, complex organizations. Previous empirical and theoretical findings can be integrated in this new conceptual framework.
The paper makes the following key points. First, firms need both diversity and order in their strategic activities to maintain their viability. Diversity results primarily from autonomous strategic initiatives of participants at the operational level. Order results from imposing a concept of strategy on the organization. Second, managing diversity requires an experimentation-and-selection approach. Middle level managers play a crucial role in this through their support for autonomous strategic initiatives early on, by combining these with various capabilities dispersed in the firm's operating system, and by conceptualizing strategies for new areas of business. Third, top management's critical contribution consists in strategic recognition rather than planning. By allowing middle level managers to redefine the strategic context, and by being fast learners, top management can make sure that entrepreneurial activities will correspond to their strategic vision, retroactively. Fourth, strategic management at the top should be to a large extent concerned with balancing the emphasis on diversity and order over time. Top management should control the level and the rate of change rather than the specific content of entrepreneurial activity. Finally, new managerial approaches and innovative administrative arrangements are required to facilitate the collaboration between entrepreneurial participants and the organizations in which they are active.
Three attributes that a firm's culture must have to generate sustained competitive advantages are isolated. Previous findings suggest that the cultures of some firms have these attributes; thus, these cultures are a source of such advantages. The normative implications of the analysis are discussed. Firms that do not have the required cultures cannot engage in activities that will modify their cultures and generate sustained superior financial performance because their modified cultures typically will be neither rare nor imperfectly imitable. Firms that have cultures with the required attributes can obtain sustained superior financial performance from their cultures.
The conditions under which transactors can use the market (repeat-purchase) mechanism of contract enforcement are examined. Increased price is shown to be a means of assuring contractual performance. A necessary and sufficient condition for performance is the existence of price sufficiently above salvageable production costs so that the nonperforming firm loses a discounted steam of rents on future sales which is greater than the wealth increase from nonperformance. This will generally imply a market price greater than the perfectly competitive price and rationalize investments in firm-specific assets. Advertising investments thereby become a positive indicator of likely performance.
I. Interdependence and conjecture in entry, 242.—II. Barriers to mobility, 249.—III. Diversification by established firms
and intergroup mobility, 257.—IV. Conclusion, 261.
Introduction, 181. — I. A stochastic model of interfirm profitability differences, 182. — II. An example, 183. — III. Results
of tests using a simple simulation model, 186. — IV. Summary and challenge, 191.
Causal ambiguity inherent in the creation of productive processes is modeled by attaching an irreducible ex ante uncertainty to the level of firm efficiency that is achieved by sequential entrants. Without recourse to scale economies or market power, the model generates equilibria in which there are stable interfirm differences in profitability, an above-normal industry rate of return, and a lack of entry even when firms are atomistic price-takers. The free-entry equilibrium for rational noncollusive firms is characterized for atomistic firms and for firms of fixed size, and some analytic results are obtained for the more realistic case in which firms have an arbitrary cost function. Numerical results for the associations implied between concentration, industry profitability, fixed entry costs, and the dispersion of firm profitabilities are obtained for selected cases.
Path-dependent systems of the ‘autocatalytic’ or self-reinforcing type typically possess a multiplicity of possible asymptotic outcomes or structures, with early random fluctuations determining which structure is ‘selected’.We explore a wide class of such systems, which we call non-linear Polya systems, where increments to proportions or concentrations occur with probabilities that are non-linear functions of present proportions or concentrations. We show that such systems converge to outcomes (proportions or concentrations) that are represented by the stable fixed points of these functions. These limit theorems are strong laws of large numbers for path-dependent increments, and as such they generalize the standard Borel strong law for independent increments. They are powerful and easy to use.We show applications in chemical kinetics, industrial location theory and in the emergence of technological structure in the economy.
- J.A. Pearce, E.B. Freeman, R.B. Robinson
- J.B. Barney
- M. Porter