Article

Identifying Valuable Resources

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Abstract

One of the reasons why the resource-based view is difficult to operationalize derives from a lack of clarity about what 'valuable' means. In this paper we explore the impediments to arriving at a monetary valuation of a resource, and we suggest how resources could be identified within a firm, given our clarification of 'valuable' and propose an approach to firm resource identification focusing on the impact of resources on unit margin. We also address the issue of competitive disadvantages that may counteract the positive benefits of resources.

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... According to Bowman and Ambrosini [36,83,84], the study considers (Sections 4-6) the term use values (UVs) as the properties of products and services that provide utility to the firms. Therefore, along with the vine and wine supply chain, the properties of firms' inputs are considered separable. ...
... In attempting to better deal with the four fundamental issues previously defined in the study aims linkages with the three Resource-Based-View strategies were carried out. In order to consider CF mechanism the questionnaire was conceptualized by the followings assumptions [36,83,84]: ...
... From the standpoint of the results concerning the theoretical framework adopted some implications of interest emerge. According to Bowman and Ambrosini [36,83,84], the study, despite its exploratory character, appears to provide internal agreement with RBT's theory derived from firms' specific bundle of resources and practices deployed by firms. On the other side, following additional CA's approach, it guides firms reasoning on external relations with customers for improving their value capture, and integration among them (i.e., through more suitable communicational tools, etc.). ...
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In the wine sector, the choice of a sustainable strategy based on smart marketing has gained more relevance due to the growing importance of sustainability. The literature illustrates a multiplicity of perspectives, wherever firms are committed to improving sustainability and market performance. This exploratory paper aims to make sense of the extant literature by analysing 10 case studies in Italy, focusing on sustainable competitive resources and strategies, considering the role of CF (Carbon Footprint) as a crucial factor. The research has considered a complementary theoretical framework based on both Resource-Based Theory and Competitive Advantage Theory. Data were analysed by descriptive statistical techniques. The results show a bundle of unique resources and strategies in pursuing firm performance, wherever CF may lead to significant sustained competitive advantages in firms’ value capture (ex. image and reputation and customers’ relationships loyalty, entrance into new foreign markets). Findings highlight that perceiving the costs and benefits of investments in lowering CF may guide to a more accurate understanding of the value-creating from the different type of eco-innovation for building tailor-made communicational and marketing strategies.
... Vourinen et al. (2006) studied network resources and proposed a framework for assessing them in four steps: evaluation of the value of the resources of single companies, awareness of others' resources, applicability of the resources, and allocation and development of the resources. Bowman and Ambrosini (2007) attempted to identify valuable resources -ones that permit premium pricing or enable costs to be lowered relative to competitors. They also noted that valuable resources can generate three types of competitive advantage: a cost advantage, a price premium advantage, and a volume-based advantage. ...
... Some studies have been conducted to identify strategic resources within firms (e.g. Mills et al. 2003;Bowman and Ambrosini 2007;Marino 1996;De Olivira Wilk and Fensterseifer 2003;Hall 1993;Carmelli 2004;Hafeez et al. 2002). In this research we deal with the first step, which is the identification of strategic resources and capabilities. ...
... Several authors (Barney 1991;Grant 1991;Peteraf 1993;Lippman and Rumelt 1982;Collis and Montgomery 1995;Amit and Schoemaker 1993;Dierichx and Cool 1989;Black and Boal 1994) have studied the characteristics of the resources and capabilities for creating and sustaining competitive advantage. Those characteristics can be categorized in two classes: they must be sustainable and valuable (Foss and Knudsen 2003;Fahey and Smithee 1999;Bowman and Ambrosini 2007;Hoopes et al. 2003;Cluloo et al. 2007;Stravistava et al. 2001;Mills et al. 2003). Wade and Hulland (2004) argued that there are two phases in RBV: phase one is related to the scarcity of resources and capabilities, which makes them valuable (i.e. ...
... Incorporating family firm specific components into our analysis leads to the generation (or prevention) of value and the mitigation of risk by the involvement of the family in the business. We propose dividing the dynamic component of valuation (real options) into two broad categories: those that are available to all firms with a comparable activity pattern and those that are more specific to family firms due to the central role of the family in firm performance (Astrachan, 2010;Bowman & Ambrosini, 2007;Dyer, 2003;Nordqvist, 2005). In the latter category, family exit affects family firm value by creating future flexibilities and inflexibilities to act for PE investors, that is, real options gained and/or lost. ...
... Long-term personal ties with suppliers might lead to uncompetitive sourcing prices. Consequently, the economic rents of family firms may be captured by stakeholder groups or the family itself (Bowman & Ambrosini, 2007;Miller, Le Breton-Miller, & Scholnick, 2008). ...
... By recognizing the number and value of NfO and FOaR during the due diligence process, potential PE buyers are justified in demanding an acquisition discount for the family firm in comparison to a similar non-family firm target. By acknowledging the central role of the family for firm performance (Astrachan, 2010;Bowman & Ambrosini, 2007;Dyer, 2003;Nordqvist, 2005), PE buyers struggle to compensate for the negative economic effect arising from family departure. The idiosyncratic resources and capabilities inherent in the family business due to previous family influence present a downside risk for the acquirer. ...
Article
An increasing number of families are selling their businesses to private equity (PE) investors. A key question is what the family firm is worth without the family as part of the business. We provide a buyers’ perspective on the valuation of the family firm and argue that prior family involvement provides the PE buyer with a distinct landscape of real options that require consideration. While the buyer gains real options for external (economic) value creation as a result of family departure, family exit after the sale triggers a loss of family dependent real options, which may subsequently reduce economic value for the new owner. Consequently, these two opposing effects need to be considered when accounting for the central role of the family and whether these effects result in an increased or decreased valuation of family firms.
... strategic, non-material, dynamic capabilities) and do not focus on the whole of enterprise resource base. There are individual studies focusing on the attempt to define what Barney's resource attributes mean [1], on combining VRIN resources with dynamic capabilities and their effect on the economic performance [2] or finally typical studies on resources meeting VRIN category [3][4][5]. The obvious deficiency of research is an incentive for the author's exploration of the subject of enterprise resource profile in the area of resource based view. ...
... How do you determine which resource is valuable or rare? The explanation of the term "valuable" was attempted by Bowman and Ambrosini [1]. The authors indicate three ways of perceiving the resource value: usage value (perception of the value by the customer), monetary value (the amount the customer is willing to pay) and exchange value (the amount that was actually paid). ...
Conference Paper
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The resource-based view in strategic management is currently of great interest to both scientists and practitioners of economic life. The resource-based view focuses on enterprise internal attributes as important factors that affect its competitive position. The literature of the subject emphasizes insufficient empirical research justifying the theoretical foundation of the discussed approach. The main aim of the article is to indicate to what extent the resources owned by the company affect their economic performance. The company's resources are considered in accordance with the VRIN model proposed by Barney ie. valuable, rare, inimitable, not substitutable. In order to achieve the objective, theoretical framework of resources according to the resource-based view was first outlined. The focus was on the main assumptions of the resource-based view and detailed characteristics of resources attributes. An essential part of this research is a regression analysis of the stock base of companies and their economic performance. The analysis was carry out based on the survey conducted on a sample of 55 companies listed on the WSE and NC markets in Warsaw.
... Later the RBV theory emerged with other researchers associated to strategy (Barney, 1986(Barney, , 1991(Barney, , 1995(Barney, , 1999(Barney, , 2001Grant, 1991Grant, , 1997Peteraf, 1993;Amit and Schoemaker, 1993;Teece et al., 1997;Bowman and Ambrosini, 2007;Kunc and Morecroft, 2010).The RBV began with Wernerfelt (1984), who states that growth of companies is based in terms of diverse and specific resources, and not products, since they are the resources that can generate differentiation in the strategic choices of firms. In this perspective, the competitive advantage is explained by the way organisations develop and use their resources, thus achieving a superior performance (Wernerfelt, 1984). ...
... In this perspective, the competitive advantage is explained by the way organisations develop and use their resources, thus achieving a superior performance (Wernerfelt, 1984). This argument is shared by Grant (1991) who considers that a vision focused on resources and capabilities allows the firms to pursue a certain strategic position in the market because the resources and capabilities are primary sources of profit.Thus, managers are challenged to identify, develop, protect and utilise the resources and capabilities to provide the company with a sustainable competitive advantage and thus a higher return on capital (Amit and Schoemaker, 1993;Barney, 1991Barney, , 1995Bowman and Ambrosini, 2007). ...
Article
This study established a broad theoretical framework combining agency theory and resource and capacity theory. We sought evidence of these theories’ implications for corporate entrepreneurship (CE) and an understanding of how corporate entrepreneurship affects performance. To identify relationships between these theories and concepts, we designed a research model and tested it using data from a questionnaire to 114 multinational firms. Findings provide general support for this theory, indicating that CE is positively associated with principal management-based incentives and capabilities on performance.
... Later the RBV theory emerged with other researchers associated to strategy (Barney, 1986(Barney, , 1991(Barney, , 1995(Barney, , 1999(Barney, , 2001Grant, 1991Grant, , 1997Peteraf, 1993;Amit and Schoemaker, 1993;Teece et al., 1997;Bowman and Ambrosini, 2007;Kunc and Morecroft, 2010).The RBV began with Wernerfelt (1984), who states that growth of companies is based in terms of diverse and specific resources, and not products, since they are the resources that can generate differentiation in the strategic choices of firms. In this perspective, the competitive advantage is explained by the way organisations develop and use their resources, thus achieving a superior performance (Wernerfelt, 1984). ...
... In this perspective, the competitive advantage is explained by the way organisations develop and use their resources, thus achieving a superior performance (Wernerfelt, 1984). This argument is shared by Grant (1991) who considers that a vision focused on resources and capabilities allows the firms to pursue a certain strategic position in the market because the resources and capabilities are primary sources of profit.Thus, managers are challenged to identify, develop, protect and utilise the resources and capabilities to provide the company with a sustainable competitive advantage and thus a higher return on capital (Amit and Schoemaker, 1993;Barney, 1991Barney, , 1995Bowman and Ambrosini, 2007). ...
... As stakeholders form different understandings of what is valuable to them based on knowledge, goals, and context , their objectives and priorities may change over time (Clark, Johnston, & Shulver, 2000). The valuation is also dependent on what resources are available (Bowman & Ambrosini, 2007) and how these are valued (Vargo, Maglio, & Akaka, 2008) in innovating service within a value constellation (Rubalcaba et al., 2012). It is, therefore, important to seek an interactive approach and to broaden the coalition to include social and political influences. ...
... In a service innovation process setting, it is not what resources stakeholders have, but rather what they make of them, or to what extent the stakeholders and the focal firm believe in what the stakeholder-possessed resources can do for the future value creation that is of importance. How resources are valued depends on what resources are available at a specific time (Bowman & Ambrosini, 2007) and how other stakeholders value the available resources . The way in which the resources are valued also depends on the stakeholders' ability to see how the resources are able to fit into the future resource integration. ...
Article
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Service innovation processes are driven by stakeholders in interaction and are understood and sketched as a value negotiation process that consists of an iterative process of securing potential value in service. While previous research has focused on service innovation as a harmonious closed system, our study explores service innovation as a political process in which stakeholders negotiate to create and secure future value. Data are collected through interviews and participant observations in four different case studies. Our study contributes to the field by illuminating service innovation as a political process and explaining how this is operationalized. The findings also contribute to an understanding of how stakeholder resources impact a chosen strategy; the resulting strategy’s impact on the service concept vis-à-vis its potential value; and how several involved stakeholders formulate, negotiate, and secure future potential value, which are the activities that drive a service innovation process.
... Cette étape constitue toujours un handicap en sciences de gestion. En effet, si l'approche par les ressources et les compétences a fait l'objet de travaux abondants, la question de leur identification, bien qu'elle constitue une étape clé, demeure peu abordée par la littérature (Doz 1994 ;Rouby et Thomas 2004 ;Bowman et Ambrosini 2007). ...
... Bien que l'approche par les ressources, et son extension récente, par les compétences distinctives, ont été largement abordées et développées par la littérature en sciences de gestion, rares sont les travaux qui traitent de l'identification de ces ressources et de ces compétences (Pan et al. 2007 ;Bowman et Ambrosini 2007). La raison évoquée est généralement la tacité de ces ressources et de ces compétences stratégiques qui se manifestent souvent sous une forme combinée. ...
Article
Through the consideration of the virtues provided by the use of information systemsand technologies of communication applied to the HRM, this thesis proposes a new methodbased on a scientific approach, which aims at updating the practice of "core competenceidentification", the key practice of the implementation of the "process of core competencestrategic management" proposed by Hamel and Prahalad, 1995. The "rational myth" built in this intervention-research, was translated into CoreCompetence Identification System (CCIS), the management tool developed within the bigTunisian company "PGH" and implemented in three of its subsidiaries. The result achievedis in terms of cartography of capabilities relating to the use of the information managementsystems. The developed framework allowed us to obtain a general classification of thecapabilities relating to the use of the information management systems accordingto anactuariale method, through the drawing up of three dynamic dashboards on the basis ofwhich action plans in terms of knowledge capitalization, development and redeployment ofthe portfolio of capabilities can be considered. This thesis highlighted the logic of congruence between the IS architecture, theorganizational structure and the strategic approach adopted by the firm. It also highlightedthe interest of skills analysis by opposition to the workstation analysis, as key practice ofcapabilities identification, and marked the overtaking of generally accepted ideasconcerning the classic segregation relating to the limited strategic reach of the individualskills by opposition to the collective and organizational skills.
... These include know-how, human capital and funds as well as physical assets. The RBV provides insight into the value creation process through its emphasis on assessing the unique resources that create value (Bowman & Ambrosini, 2007). Value configuration involves realizing revenue from the creation of products or services. ...
... Those that chose Value-S relies on the ability to develop solutions that are unique to the requirements of the customers (Stabell and Fjelstad, 1998). The more unique the solution is delivered to the customer, the more likely a Value-S will be able to charge a premium price (Bowman & Ambrosini, 2007). Each customer"s encounter is different and thus presents the Value-S with more variability and challenges. ...
Article
Finding, creating and sustaining competitive advantage has been the major game organisations play. Making the right choice of various tools and methodology available can also be the challenge. This paper looks at value configuration as a tool with vast potential to assist managers in deriving at a competitive advantage position. This paper will deliberate only on the results of the Value-S component of the qualitative study done on service organisations. Value-S organisations focus on the use of intensive technologies to solve problems specified by customers through managing their available resources. They need to structure, bundle and leverage them to not only solve the problems but also result in creating values appreciated by the client. This study intends to integrate the theories in value configuration in service industries (Value-S) and resource management as a strategic tool in managing firms. Data were collected mainly through in-depth interviews with selected thirty participants as well as published and internet sources. They were then analyzed manually as well as using Nvivo. The findings show that in Value-S firms, the structuring, bundling and leveraging the resources are based on a dynamic routine, component knowledge, loose coupling and their reputations on handling the projects in the eyes of their customers and stakeholders. Management uses these inputs for decision making which then create a favourable business environment conducive to achieving goals and long term planning. Specific recommendations for further research are also suggested.
... Assim, recursos valiosos podem ser o resultado de uma série de factores simultaneamente configurados em conjunto que oferecem vantagem à organização. Podem ser conectados em sequência, ao longo do tempo, onde, por exemplo, sistemas de excelente qualidade podem resultar em produtos mais fiáveis com menores custos de ineficiência (Bowman & Ambrosini, 2007). ...
... Tudo isto condiciona a avaliação dos recursos, ou seja, o efeito do recurso, o seu impacto, é moderado pela presença de recursos complementares (Bowman & Ambrosini, 2007). ...
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Esta visita ao universo dos paradigmas dos recursos e das capacidades dinâmicas nasce do trabalho desenvolvido durante a minha tese de doutoramento em Gestão Estratégica na Universidade Aberta e tenta espelhar a investigação bibliográfica efectuada à literatura existente até 2013 sobre estes paradigmas.
... In this regard, the source of competitive advantage becomes a relevant theoretical framework underpinning the current study by considering dynamic capability (Bashir and Verma 2017;). In line with this assertion, Wang and Ahmed (2007) as well as Bowman and Ambrosini (2007) affirm that the source of competitive advantage would to a large extent determine the understanding of the concept of a competitive advantage in a broad term. However, Eisenhardt and Martin (2000) complemented and demonstrated that dynamic capabilities are perceived to be the antecedent of organisational and strategic routines. ...
Article
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Adopting new technology as a strategic resource can result in a competitive edge in any market. However, a competitive advantage cannot be acquired in the production of horticultural goods without first embracing the practices that are inextricably linked to those goods. This paper investigates the adoption of farm practices in conjunction with technology transferred to farmers. Some research debates on competitive advantages have identified both resources and processes of production as sources of competitive advantage. The emphasis on the resource-based view and dynamic capability view stipulates that firms acquire competitiveness via internal resources and capabilities. However, there has not been much empirical exploration of horticultural production sustainability in this regard despite its sufficiently outstanding contribution to the gross domestic product in developing and developed economies. It specifically discusses how Technology Adoption Practices (TAP) could lead to a competitive advantage in horticulture with particular reference to the production of pineapple fruit in Ejigbo, Nigeria. From the angle of professional practice; the study provides an insight into how farmers strive to suggest solutions to practical challenges faced within the production process. Therefore, it is essential to have practices in place for the adoption of sustainable technology. The outcomes of the study generate two different storylines and demonstrate that attributing factors as well as reinforcing capabilities both boost competitiveness at the farm level and enhance the farmers’ desire for farming pineapples. Pineapple farmers in Ejigbo employ a differentiation approach to gain a competitive advantage in their agro-farming industry. This could lead to an increase in the volume of fresh pineapple products that are exported.
... To ultimately understand what a stakeholder perceives to be valuable, it needs to be considered that the nature of value is subjective and multi-faceted and cannot be defined on its own, and is void of context or people to ascribe that value. Bowman and Ambrosini (2007) explain that the stakeholders' level of relationship with the organisation informs the perception of what that stakeholder deems to be valuable at that time. Hart and Milstein (2003) defined value creation as a process or activity that concurrently enhances a positive impact and reduces the negative impact of the organisation while creating economic value for its shareholders. ...
Article
Full-text available
The Coalition for Inclusive Capitalism launched the Embankment Project for Inclusive Capitalism (EPIC) to tackle the challenge of communicating how value is created for the stakeholders of a company. However, discord on how stakeholder value should be measured exists. Management accountants can successfully measure the value of money in their cost control function, but it remains a challenge on how they perceive the adding or creating of value in their respective roles and if their own perceived performance. The aim of this study was to obtain an understanding study of how management accountants view and navigate through this concept of value creation in general and in their organisation, how and why they engage in value-creating activities for their organisations and its stakeholders. A qualitative approach was adopted to conduct the study and the data collection technique constituted a literature review and questionnaires distributed to 30 participants. The majority of the participants believe that they are creating value for their organisations and positioned their perceived value creation into the economic value category. Some participants believe that the value they create within their organisation cannot be measured. Overall, it is recommended that possible development of tools, models or frameworks to assist management accountants in the measuring or capturing of value should be explored that is of a more subjective nature, so that it would be easier to implement and drive value creation practices in the workplace.
... Cardeal and Antonio (2012) said that some worlds could relate the valuable, such as enable, contribute or some capability point to the need for something else to transform the (valuable) resources into the output that provides value. In an attempt to operationalize the concept of valuable resources define resources in the broad sense, to include activities and capabilities (Bowman & Ambrosini, 2007). Resources are measured as valuable. ...
Article
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Project performance is related to project success; therefore, it is essential to concern about the strategic assets of an organization. Hence, the prime objective of the study is to examine the relationship between the characteristics of strategic assets and the project performance of Government and Non-Government Organizations. This study was conducted by collecting primary data from 115 project managers and project team members of selected government and non-government organizations in the Batticaloa district. Univariate and correlation analyses were used to analyze the data. The findings revealed that valuable, inimitable characteristics and project level performance are at a higher level, but the rare characteristic is at a low level among the sample. The findings also disclosed that there is a significant positive relationship between valuable, inimitable characteristics and project performance, while rare characteristic have a significant negative relationship with project performance. Keywords: Strategic Assets, Valuable, Inimitable, Rare, Project Performance
... To ultimately understand what a stakeholder perceives to be valuable, it needs to be considered that the nature of value is subjective and multi-faceted and cannot be defined on its own, and is void of context or people to ascribe that value. Bowman and Ambrosini (2007) explain that the stakeholders' level of relationship with the organisation informs the perception of what that stakeholder deems to be valuable at that time. Hart and Milstein (2003) defined value creation as a process or activity that concurrently enhances a positive impact and reduces the negative impact of the organisation while creating economic value for its shareholders. ...
Article
Full-text available
The Coalition for Inclusive Capitalism launched the Embankment Project for Inclusive Capitalism (EPIC) to tackle the challenge of communicating how value is created for the stakeholders of a company. However, discord on how stakeholder value should be measured exists. Management accountants can successfully measure the value of money in their cost control function, but it remains a challenge on how they perceive the adding or creating of value in their respective roles and if their own perceived performance. The aim of this study was to obtain an understanding study of how management accountants view and navigate through this concept of value creation in general and in their organisation, how and why they engage in value-creating activities for their organisations and its stakeholders. A qualitative approach was adopted to conduct the study and the data collection technique constituted a literature review and questionnaires distributed to 30 participants. The majority of the participants believe that they are creating value for their organisations and positioned their perceived value creation into the economic value category. Some participants believe that the value they create within their organisation cannot be measured. Overall, it is recommended that possible development of tools, models or frameworks to assist management accountants in the measuring or capturing of value should be explored that is of a more subjective nature, so that it would be easier to implement and drive value creation practices in the workplace.
... The term resource value used by Barney appears both in interpretations and explanations (Kraaijenbrink, Spender, Groen, 2010), thus it is difficult to deduce what the term 'valuable' actually means. Bowman and Ambrosini (2007) attempted to explain the term 'valuable' in reference to the resource theory. The authors indicate three ways of perceiving the resource value: usage value (perception of the value by the customer), monetary value (the amount the customer is willing to pay) and exchange value (the amount that was actually paid). ...
Conference Paper
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Publication has not been a subject of language check. Papers are sorted by autors's names in alphabetical order. All papers passed a double-blind review process. Abstract: The aim of this article is to identify resources using the VRIN criteria (valuable, rare, inimitable, not substitutable) in joint stock companies. In order to achieve the objective, theoretical framework of resources according to the resource-based view was first outlined. The focus was on the main assumptions of the resource-based view and detailed characteristics of resources attributes. An essential part of this research is the presentation and analysis of the results of a survey conducted on a sample of 63 companies listed on the WSE and NC markets in Warsaw in relation to their stock base. The intention of the conducted research is to indicate how the entrepreneurs regard the resources in accordance with VRIN model. Our research indicates that VRIN criteria meet intangible assets, mainly intellectual property and human capital.
... These resources are viewed as unique bundles of tangible and intangible assets, including a firm's management skills, its organizational processes, and the information and knowledge it controls. The unique resources, which are often heterogeneous across firms, in turn, define and distinguish firm performance in varying ways (Bowman and Ambrosini 2007). Proponents of the theory, generally, espouse the indispensable role played by resources in enabling firms to achieve growth/performance benefits. ...
Article
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The study investigates the relationships of enterprise resources and branding capabilities with branding efforts and branding benefits. It examines the differential effect of physical resources and branding capabilities on enterprises’ branding efforts and outcomes. Empirical data for the study were drawn from 304 small and medium-sized enterprises (SMEs) in Ghana. The hypothesized relationships were analyzed using Structural Equation Modeling. The study found that resources and capabilities possessions might not be enough to produce the optimum branding benefits for enterprises. A better result, however, emerges when these resources and capabilities are integrated with well-coordinated branding efforts of the enterprises. The study offers several implications for managers of small businesses based on the findings of the study.
... De Chernatony and Harris (2000), Lepak et al. (2007), Bowman and Ambrosini (2007), Bowman and Ambrosini (2010), Porter (2010), Matthews (2013), Schiuma and Carlucci (2012), Vveinhardt and Andriukaitiene (2014), Vveinhardt and Gulbovaite (2016), Pekkola and Ukko (2016) concentrated on value creation processes; Dalmaris (2007) analyzed improvement of knowledge-intensive processes. Carayon et al. (2006), Brandao de Souza (2009); Does et al. (2009), Langabeer et al. (2009), Brandao de Souza and Pidd (2011), McAlearney et al. (2011, de Mast et al. (2011), Tvedt et al. (2012), Boyer et al. (2012), Gardner et al. (2015) researched different aspects of process improvement in healthcare. ...
Article
Every organization can be viewed as a set of processes and activities that are structured to satisfy customers’ needs and expectations. The pressure of global competition, technology progress, increasing product and service complexity, and strong customer orientation force organizations to improve processes and their capability to create and deliver value. The fundamental goal of health care sector is added value for patients. The paper aims to develop a conceptual framework for healthcare processes improvement from the viewpoint of value creation. Based on systematic and comparative analysis of scientific literature, authors of the paper present the theoretical model ofprocesses improvement for value creation from patient and organization perspectives. Value for patient is reflected in better access to services, time and cost reduction, quality improvement, convenience, and satisfaction. From organization perspective this leads to quality improvement, waste elimination and, finally, to a competitive advantage. Empirical research was conducted at outpatient clinic reception. 360 degree empirical research was applied during it including all parts interested, namely outpatient clinic’s administration representatives, employees and patients. There were identified problematic areas of outpatient clinic’s reception work processes and suggestions for processes improvement presented. © 2017, Kauno Technologijos Universitetas. All rights reserved.
... In VRIO framework, the focus is on the functionality and on the usefulness of each resource starting from the strategic characteristic previously listed; obviously, in order to take advantage from resources owned by a company or a territory it is necessary to manage them through capabilities (Newbert 2008). This is the reason why there are a lot of several contributions in defining resources: anyway the most recent ones describe resources in a broader way, including activities and capabilities as the key to achieve the competitive advantage (Bowman and Ambrosini 2007). With the aim to involve the above described framework in local and tourism development, it is necessary to focus on the key role that relationships among local actors have on the evolution of tourism destinations. ...
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The present work aims to verify the potential of growth of Val d'Agri, a portion of Northern Basilicata Region in Italy which is included between Sirino and Volturino mountains, without any institutional configuration. Starting from methods and tools arising from the literature review, the selected context will be examined in two phases-the first one based on the analysis of documents, the second one realized with interview with opinion leaders; from the SWOT analysis and VRIO analysis, they will be identified local strengths and local opportunities. Then, in order to achieve the requalification the sub-region focusing on the emerged valuable resources, two research proposals will be defined aiming to the configuration of a Local Tourism System and the definition of a project idea involves the 21 municipalities of the area consisting in the definition of thematic paths to lever on them towards the sustainable development of local tourism.
... Operations management will be reluctant to invest resources to develop capabilities on the mere possibility that what is created may provide the basis of a new operations-based business strategy. While the resource-based view offers a persuasive appeal, managers require more help if they are not to rely on mere speculation of future value (Bowman and Ambrosini 2007). Our paper helps reduce this gap in knowledge partly because an empirical study examining how innovation capability develops within service operations is rare. ...
Article
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How service companies can develop an ability to innovate within their operations and use this to help formulate business strategy is still largely unknown. In this paper we report findings from exploratory, case study research conducted at five service companies. At three of the companies studied, service operations made year-for-year innovations in support of company performance but had no influence on strategy. The other two companies were significantly different. The way in which their innovation capability developed not only supported current performance but also opened new strategic directions for their organisations. From our cross-case analyses, four propositions are offered to explain how this can occur: First, profit instability leading to the restructuring of service operations is more likely to lead to the development of a service innovation capability that can help formulate business strategy than profit stability. Second, the attainment of improved technical competencies by service operations’ employees is not sufficient to lead to the development of an innovation capability that can help formulate business strategy. Third, when employees develop behavioural competencies in addition to technical operational competencies, this combination leads to the development of innovation capability that can help formulate business strategy. Finally, recognition of the potential of service operations is necessary before new competencies can help formulate business strategy.
... Drawing from the literature on tacit knowledge, we suggest how perceptive concordance in small, long-lived FBs may be achieved over time by a process of customer feedback and informed action (Nelson and Winter, 1982;Salomann et al., 2005). In FBs, tacit knowledge of local customers may then be passed to successive generations of family managers (Bowman and Ambrosini, 2007). Accordingly, a competitive strategy that leverages the strengths of FBs in markets that they know well can sustain competitive advantage (Carrigan and Buckley, 2008). ...
Article
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1. Abstract We assess the closeness of perceptions between managers and customers of two small family-owned businesses ("FBs") and two larger non-FBs in Sardinia, Italy, in exploring how local retail shops may compete against international superstores. While the decline of small, High Street businesses has been widely reported, we present a more nuanced perspective of their competitiveness by suggesting how these typically family-run businesses may in fact hold a competitive advantage over larger non-FBs based on a well-developed "perceptive concordance" with their customers. Perceptive concordance can result from a process of customer feedback and informed action that produces deep, tacit knowledge of customers' preferences. Drawing on this knowledge, owner-managers of our two non-FBs were able to anticipate and stock products that were most sought by their customers. By contrast, competing non-FBs offered a large, generic range of products that was less popular with their customers. Our view has scholarly and managerial implications in the way that both FBs and non-FBs may gain competitive advantage by developing their perceptive concordance with customers to secure their ongoing support.
... The basic concept of RBV perspective describes that firm is considered as a bundle of resources, and some of its resources are unique to the firms. This unique resources in turn will define and distinct firm performance in sustainable way (Bowman and Ambrosini, 2007). The follower of RBV concept argued that firm is heterogeneous in terms of their control of important strategic resources, and that resources are not perfectly mobile between firms (Baraldi et al., 2007). ...
Article
This study attempts to explore and examining about Indonesia Small and Medium Enterprise (SME) performance through relationship with strategic management theory. We apply strategic management model into our research to explain the relationship of firm performance with firm determinants. Firm strategy, external environment factors and internal resource factors of firm will be used as determinant of firm performance. Samples from Indonesia SME are collected and statistical analysis is applied to produce valid results. Result shows direct positive relationship of firm strategy and internal factors of firm with firm performance. Direct positive relationship of external and internal factors of firm with firm strategy also recorded. Our finding shows that high perform firms of Indonesia SME tend to use differentiation strategy, emphasize on organization assets and human resource capabilities, and focus more on customer needs.
... In this context, therefore, the term resource is all-encompassing (Forsman, 2004) and may include tangible, intangible and human resources. At an operational level the strategic value of a resource may be determined by impact on unit margin (Bowman and Ambrosini, 2007) and identified via a "resource audit" (Grant, 2008). ...
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Diversification is an important strategy for many farm businesses in the UK. However, farm diversification is not always successful and this suggests that there is a need for additional insight into the subject. This paper presents the results of a study that applies the Resource Based Theory (RBT) of the firm to farm diversification. The study is based on a case study methodology involving six farm diversifications. The results suggest that the key resources underpinning farm diversifications are the staff, information, and personal relationships. It was also apparent that the farmers who led the diversification had an intuitive understanding of the characteristics of resources which allowed them to manage them as either “basic” or “strategic” resources, and focused on the resources rather than the nature of the diversification. This then suggests that the farmers are entrepreneurs who are one of, if not the most important resource involved in the diversification.
... 3 For an extended discussion of the value characteristic seeBowman & Ambrosini (2007) Bjørn von Rimscha ...
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In this paper the development package of a proposed movie is described as a bundle of resources that determine the value of the package and thus the decision whether the movie is produced or not. Using the characteristics laid down in the resource based view, content, personnel and funding are identified as core resources in movie development. The RBV is adapted to analyze individual producers with their projects rather than firms. A superior set of resources is assumed to guarantee approval for a given project (green light). In an extensive literature review different options are discussed how movie producers can secure each of these core resources. It is shown that strategies to secure the core resources are limited since, they are interrelated. In concluding section an outlook is provided how the focus on the producer rather than a single project emphasizes the aspect of sustainable competitive advantage and how strategies of movie producers could be analyzed.
... Depending on the use the firm makes of a resource, it is valuable if : (i) it permits the exploitation of opportunities and/or the neutralization of threats (Barney, 1991); (ii) it enables the firm to do things that lead to economic value (Fiol, 1991); (iii) it has some capacity to generate profits and prevent losses (Miller and Shamsie, 1996). The concept "valuable" therefore is contingent (Bowman and Ambrosini, 2007). That is, while certain resources may have the potential to create valuable services, the value of these services will remain latent until the firm has the appropriate capabilities to deploy them (Newbert, 2008). ...
Article
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The cluster literature acknowledges the existence of resources that are shared by firms in the same cluster. The literature on dynamic capabilities argues that in the context of capability development, firms need to develop different business models and to define their firm boundaries in complementary ways. We use a multiple case study approach to analyze how three small and medium sized firms (Portuguese footwear manufacturers) belonging to the same cluster, but with different business models, exploit cluster resources. We find that the same resources are not used in the same way or for the same purpose. Our inductive investigation leads to two propositions: non-strategic shared resources are used by cluster firms in similar ways, and for the same objectives; strategic resources, which relate to the firms’ business models, are used by each firm differently and for different purposes.
... There must be ex post limits to competition, which defer, avert, or enhance the cost of existing and prospective competitors being capable to reproduce or replace the valuable resources of the activities (Peteraf, 1993). These limits originate from a number of characteristics or isolation mechanisms in the firm such as socially complicated interactions in social context, tacit knowledge (Liao & Hu, 2007;Bowman & Ambrosini, 2007), inimitable historical circumstances (Mclvor, 2008) and co-specialized assets (Zhao, 2006). At the same time, as an IT activity is outsourced any competitor can acquire them from the same vendor. ...
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In the current business environment IT outsourcing has gained prominence. Many firms in Europe outsource their IT requirements to Asia. This study analyzes the factors which favor this trend in which clients are based in Europe and vendors are based in Asia. From a strategic perspective, this study identifies the characteristics that IT activities must possess for them to be outsourced from Europe to Asia. In addition to contributing to academic literature this study will put forward the implications for organization adopting IT outsourcing.
... In this sense, it is pivotal for an organization to develop a deep understanding of what customers seek (O'Cass and Ngo, 2011) and thus the resources it needs to address customer expectations (Srivastava et al., 2001). Prior research has integrated the intuitive viewpoints (Bowman and Ambrosini, 2007) of various industry players, including executives, external experts, and customers, to determine customer value creation possibilities and the potential success that can be attained through such options (e.g., Ibrahim and Gill, 2005;Lawton, 1999;Matthyssens et al., 2009). ...
... Consequently, value is an abstract property, which is not directly perceptible (Hitlin, Piliavin 2004). So whereas value may be identifiable, it is not always possible to measure and express the value of the abstract or intangible elements in monetary terms (Anderson, Narus 1998, Bowman, Ambrosini 2007, Woodruff 1997). In addition, the perceived value is subject to the influence of expectation (Flint, Woodruff 2001) and depends on comparison of alternatives (Sharma, Mehrotra 2007). ...
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This paper focuses on the perceived buyer value of intermediated channels for building articles made to order. In order to include the co-creation aspect, this paper applies a triadic approach to describe, analyze, and understand the value creation in intermediary connected business relationships. The first section presents a review of literature on intermediaries and value. The following section presents the framework for the study. Moreover, we apply the framework to initial explorative results from a number of interviews with buyers. The initial results strongly point to a situation in the network characterized by inertia. The value creation is questioned, especially by the large buyers, who incur high acquisition cost in direct interaction with suppliers, because the merchants lack knowledge for customization of ordered goods. This situation is regarded as incompatible with trade-terms which endow merchants with a commission for ordered goods. As our study is highly explorative it leaves many interesting aspects to be investigated further. But it is clear to us that this field of research will benefit from a triadic research perspective. Although the study is in an early stage, the framework can help business managers better understand how indirect relationships through intermediaries create value.
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Despite the growing research interest in the benefits of sustainability certificates to businesses, their impact on hotel firms’ financial performance at the competitive set (compset) level is not known. To fill this gap in the literature, this study uses data from 251 certified hotels located in Florida, United States, to analyze the effect of sustainability certificates on key performance indicators (KPIs) in hotels (e.g., Occupancy, ADR, RevPAR), compared to their compset. The findings show that certified hotels can increase their KPIs compared to competitors through a first-mover advantage. The study offers significant contributions to the literature on environmental management and competitive dynamics in the hospitality industry. We provide guidelines to managers regarding timing of response to other hotels in their competitive set when obtaining sustainability certification.
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The present study empirically explores the potential development of coffee shop tourism in Vietnam, a leading coffee producer and home to a vibrant coffee shop scene, focusing on the supply side. Semi-structured, face-to-face, and online interviews were conducted with 47 coffee shop owners/managers, complemented by observations and archival information. The analysis identifies various insightful dimensions. One of these, the ‘resource-based, image-related potential’, underscores the importance of intangible elements, including Vietnam’s existing coffee culture, and the experiential element supporting the potential for the nation’s coffee shop industry to become a tourist drawcard. The ‘resource-based involvement’ dimension highlights the need for stakeholder-based actions for the industry to develop further, while the ‘upstream-based issues’ dimension suggests factors currently preventing coffee shop tourism from achieving its full potential. The study discusses several theoretical and practical implications that emerge from the findings; in addition, a conceptual framework is developed.
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This research aims to discuss a theoretical model for assessing whether the inclusion of microalgae-based feedstock into the heterogeneous resources of the livestock feed industry could help gain potential sustained competitive advantage (SCA). Microalgae refer to a large group of photosynthetic, aquatic organisms that lack the true roots, stems, and leaves of higher plants. The VRIN - value, rarity, imitability and/or not have substitutes framework is used to investigate whether microalgae feedstock could be of strategic relevance and a potential source of competitive parity, temporary and/or sustained competitive advantages, as well as superior economic performance in the feed market. If microalgae feedstock adds nutritional value to animal diets, they may provide competitive parity. If they are difficult to imitate and rare, they may provide temporary or sustained competitive advantage given that the organizations within the feed industry are organised in such a way that they could effectively and efficiently exploit the biomass and its bundle of nutritive contents. This paper points out the significance of microalgae feedstock in creating potential competitive advantage in animal feed products, based on the VRIN model. A wide-ranging literature review is conducted to extract and synthesise information from both empirical and theoretical articles concerning animal feed trials using microalgae and the nutritional values of microalgae. Although, feeding trials results appear to be promising, findings thus far do not allow to draw a conclusion on microalgae's capability to replace fishmeal as the main source of protein in animal feed products. Nevertheless, macro and micronutrients as well as the antioxidants present in microalgae could provide saving opportunities on other feed ingredients like corn and soybean meal. Additionally, animal wastewater containing significant amount of inorganic phosphorus and nitrogen, which are a major cause of eutrophication in water bodies could be bioremediated using microalgae, producing biomass in the process.
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The present study applied system dynamics modelling to assess the competitiveness between airlines from Germany to Asia. Legacy airlines like Lufthansa, Singapore Airlines or Cathay Pacific who traditionally served a majority of travellers between Europe and Asia have come under pressure through airlines from the Gulf region, but also other European airlines, like Turkish Airlines or Finnair who position themselves as gateway. Some of these airlines offer lower airfare than their competitors, but a similar or even better product and according to their financial statements are in a sound condition. Therefore tools and processes were necessary to assess the internal resources of the airlines in scope, namely Cathay Pacific, Emirates, Lufthansa and Singapore Airlines and later model the competition. Consequently, an exploratory-descriptive case study approach was chosen to set the scene and take this data into the system dynamics modelling. Due to the identification of key resources, changes to them were modelled to evaluate the dynamics of the system. It was found that system dynamics guides the researcher through the different tasks and forces to rethink and reapply certain steps to get to the notion, which resources contribute to the success of the airline.
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The premises of the resource-based theory, hypothesising that valuable and rare resources and capabilities, contribute to a firm’s competitive advantage and, consequently, superior performance, seem to be based more on intuition than empirical evidence. This study aims to empirically investigate the relationship between value, rareness, competitive advantage, and performance. Based on data from 107 Portuguese KIBS firms, the findings show that value neither is related to competitive advantage nor performance, while KIBS with rare combinations are likely to achieve higher levels of competitive advantage and performance. In addition to a direct positive influence on performance, competitive advantage was found to have a partial mediating role in the rareness–performance relationship, indicating an indirect effect of the rareness characteristic and a fundamental precedent role of competitive advantage to performance. This research contributes towards a better operationalisation of the theory, evidencing the importance of resource/capability characteristics fororganisational success.
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In a competitive business environment at the Bottom of the Pyramid smallholders supplying global value chains may be thought to be at the whims of downstream large-scale players and local market forces, leaving no room for strategic entrepreneurial behavior. In such a context we test the relationship between the use of strategic resources and firm performance. We adopt the Resource Based Theory and show that seemingly homogenous smallholders deploy resources differently and, consequently, some do outperform others. We argue that the 'resource-based theory' results in a more fine-grained understanding of smallholder performance than approaches generally applied in agricultural economics. We develop a mixed-method approach that allows one to pinpoint relevant, industry-specific resources, and allows for empirical identification of the relative contribution of each resource to competitive advantage. The results show that proper use of quality labor, storage facilities, time of selling, and availability of animals are key capabilities.
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The main aim of this paper is to present the theoretical considerations on the nature of resource-based strategies as key element in the development and creation of a competitive business. To achieve the objective in the article - starting from a review of the definition of the strategy - the essence of resource based theory have been outlined. The basic assumptions of the resource orientation in formulating corporate strategy as well as the existing limitations were characterized.
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Résumé Cet article vise à formaliser, tester et actualiser la méthode d’identification des compétences distinctives en s’appuyant sur l’utilisation des applications du système d’information ressources humaines (SIRH) au sein de trois filiales d’un grand groupe industriel tunisien. Un processus de recherche-intervention a été concretement mis en œuvre et le mythe rationel construit à l’occasion a été traduit en système d’identification des compétences distinctives (SICD). Les travaux de Hamel et Prahalad (1990, 1995) et les orientations de David (2000) ont été largement mobilisé. Le dispositif méthodologique repose in situ sur la présentation et l’expérimentation du SICD aupres de 74 agents et responsables fonctionnels ainsi que sur une mise en perspective de son appropriation à la fois par les utilisateurs et par les prescripteurs. Cet article montre – outre la pertinence d’une approche type recherche-intervention face à de tels questionnements abordant le SIRH – l’interet de la mise en évidence des dimensions individuelles de la compétence, la contribution des TIC dans les processus de reperage au sens large et l’impératif de dépassement de la pratique d’analyse des postes en mobilisant le SIRH et en particulier le SICD.
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The conventional view of the value-creation chain suggests offering high-value propositions at the product level (in terms of benefits provided by elements of the product) to attain high-value perceptions at the customer level, which should ultimately result in high-value appropriation at the firm level (i.e. relationship, volume, pricing and financial success). This study challenges this view and provides a differentiated understanding of the value-creation chain. With a multi-industry sample of 339 companies and a sample of 626 customers to validate managerial assessments, the authors apply a configurational approach to identify whether and to what extent offering high-value propositions at the product level is necessary or sufficient for achieving superior value perceptions at the customer level and high-value appropriation at the firm level. Taking into account the company-internal and company-external environment of the value-creation chain, the study identifies seven value-creation chain constellations.
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According to existing literature, the core of social entrepreneurship (SE) knowledge is evolving and, as such, it has made important contributions to theoretical definitions and essential characterizations. However, more theoretical issues need to be addressed before the SE field can be fully explained and understood. In particular, the authors observe in the literature that, within empirical or conceptual studies, almost all authors use the term ‘value’, but seemingly assume the dimensions of value rather than define or analyse its connotations and components. This paper uses the value construct and its multi-faceted dimensions to deconstruct the way in which value is created in the SE context. The authors argue that an analysis based on value generation, value capture and value sharing provides important insights into the specificity of SE research and can facilitate future theorizing. Through the conceptual lens of this central concept of value emanating from value theory and business model literature, the authors abductively analyse and classify the studies, providing a practical resource. The authors discuss the phenomenon, presenting an integrative framework that facilitates a clearer understanding of the social value creation process and suggest future research areas as openings for theory development in relation to value creation, its main components and flows.
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Through the consideration of the virtues provided by the use of information systems and communication technologies applied to the human research management (HRM), this research paper proposes a new method based on a scientific approach, which aims at updating the practice of "core competence identification", the key practice of the implementation of the "process of core competence strategic management" proposed by Hamel and Prahalad, 1995, by responding to the main question: how can the human research information systems (HRIS) play a part in the core competence identification? The "rational myth" built in this intervention- research, was translated into Core Competence Identification System (CCIS), the management tool developed within the big Tunisian company "PGH" and implemented in three of its subsidiaries. The result achieved is in terms of cartography of capabilities relating to the use of the information management systems.
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Purpose: The resource-based view and VRIO method (value-rarity-imitability-organisation) have diffused widely into courses aimed at managerial practice, but research has yet to verify whether they help managers analyse a firm’s resources. Following recent interest in the use of strategy tools, this study focuses on what happens when VRIO informs strategy action. Methodology: The paper uses experimental method to evaluate directly users’ analysis guided by VRIO relative to analysis that is not. Systematic coding of the responses evaluates how users select resources to evaluate, in which areas they make recommendations, and what account they take of competitors, dynamic evolution, and resource disadvantages, risks and limitations. Findings: VRIO encouraged users to evaluate resources relative to competitors and competitive dynamics, but resource selection difficulties and failure to evaluate resource disadvantages limited its value. In addition, it drew users to the existing operations and business model. Research implications/limitations: The study highlights a tendency for users to evaluate antecedents and outcomes of resources, and partly supports the view that VRIO elicits inward-looking descriptions. Field-based research is needed to show how using VRIO plays out in full strategy-making context. Practical implications: Highlighted limitations in VRIO analysis could be alleviated by better specifying resource selection and by addressing the positive-only tenor of VRIO materials. Originality/value: Only a small number of published studies evaluate VRIO as a method of practical strategic analysis, and this paper is the first to look directly at users’ responses. Keywords: resource-based view, VRIO, firm resources, strategic analysis, strategy tools, strategy practice, experimental method.
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Purpose – The purpose of this paper is to offer a fresh framing of innovation, as service innovation/value innovation. Design/methodology/approach – By examining the visions, patterns and outcomes of three different research approaches to understanding innovation – goods-dominant (G-D) logic, the resource-based approach and service-dominant (S-D) logic – the authors strive to outline the contribution of each to the debate on innovation. This investigation involves a comprehensive literature review. Scrutiny of a case company provides a means of identifying and illustrating how these approaches play out in a real business context. Findings – A framework for innovation builds on the comparison of the three research approaches. G-D logic, when analysed in terms of new product development and new service development, positions innovation as an output (a new good or service) of a business's internal processes, with the firm as the main actor. The resource-based approach establishes the drivers of innovation as knowledge, capabilities and relationships, but the firm is still the main innovator. S-D logic addresses “open” innovation processes in which all actors in the network can mobilize and integrate their resources to become value co-innovators. Research limitations/implications – This study builds on the literature review by offering a more systematic way of dealing with the different research traditions in innovation debate. Practical implications – This study spurs managers to question the validity of dominant logic and how it affects the decision-making process. The conceptualization of innovation within S-D logic provides new avenues for decision makers and practitioners to tackle topical challenges of global competition. Originality/value – The value of this paper lies in defending the premise that S-D logic is better suited than the other two research traditions to frame current innovation within the context of global competition because it moves innovation beyond mainstream conceptualization: from “products and services” to “service and value”, from “buyer-seller dyads” to “ecosystem relationships”, and from “closed/linear process” to “open/co-created process”.
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The book contains theoretical and empirical considerations on psychological contract and the role of contract in value creation and appropriation process
Book
Die Arbeit systematisiert die Risiken in der Entwicklung von Spielfilmprojekten als Vorprodukt der Filmproduktion und als Kuppelprodukt aus Kunst und Ware. Es wird eine ausführliche Literaturübersicht geboten, welche Möglichkeiten für Produzenten theoretisch bestehen, diese Risiken bereits vor Drehbeginn zu steuern, also bevor nicht rückholbare Investitionen getätigt werden. In einer qualitativen empirischen Studie wird untersucht, inwieweit Produzenten in unterschiedlichen Strukturkontexten die theoretisch abgeleiteten Steuerungsmöglichkeiten tatsächlich anwenden. Dabei zeigt sich, dass Produzenten allgemein einen wenig systematischen Umgang mit ihren unterschiedlichen Risiken pflegen und sich insbesondere auf ihre Intuition verlassen. Darüber hinaus wird die Risikosteuerung von den im relevanten Marktumfeld vorhandenen Steuerungsmöglichkeiten bestimmt. Die Risikosteuerung ergibt sich damit als Kombination aus Produzentenressourcen und Marktstruktur.
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In this paper the authors apply a meta-theory analysis to compare two theoretical approaches: the resource-based view (RBV) and service-dominant logic (S-D logic). The comparison is based on three aspects: 1. a general profile; 2. the role of resources; 3. the conceptualisation of value. The authors give insights to a deeper understanding of the two approaches and their possible interdependencies without reducing multiplicity and complexity. The analysis ends with suggestions for further research.
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Previous research has verified the positive impact that internal strategic fit can have on business performance. However, many service organizations experience the difficulty of managing the fit between competitive and operations' strategies. Inherent within the problem has been insufficient understanding of the substantive relationships between the dimensions of competitive and operations' strategies. The purpose of this service-based business research was to investigate the characteristics of the competitive and operations' strategies of a business in order to assess the degree of fit. Strategic profiling was used as the method to investigate the characteristics of the different relationships between competitive and operations' strategies in 21 service businesses. The research results in the identification of a diverse range of organizational relationships developed by the adoption of different approaches to competitive strategy formulation and their consequences upon the strategic role of operations. The findings should be of particular interest to both strategic and operations managers as they detail a means of assessing the perceived level of strategic fit between the current competitive and operations' strategies of a business. Such an assessment can facilitate the planning of interventions for its future improvement.
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This paper aims to propose a practical framework for strategic quality management in law firms by applying the quality function deployment (QFD) principles to integrate the voice of the client into the law firms' resource enhancement process. Based on a thorough exploratory study of the Catalan corporate legal industry, this article argues that QFD, along with other quality tools, allows for the identification of the strengths and weaknesses of the legal service (the service value) as well as the critical resources for client satisfaction (the strategic quality resources), thus emphasising opportunities to leverage client expectations to the firm's competitive advantage.
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The cluster literature acknowledges the existence of resources that are shared by firms in the same cluster. The literature on dynamic capabilities argues that in the context of capability development, firms need to develop different business models and to define their firm boundaries in complementary ways. We use a multiple case study approach to analyze how three small and medium sized firms (Portuguese footwear manufacturers) belonging to the same cluster, but with different business models, exploit cluster resources. We find that the same resources are not used in the same way or for the same purpose. Our inductive investigation leads to two propositions: non-strategic shared resources are used by cluster firms in similar ways, and for the same objectives; strategic resources, which relate to the firms’ business models, are used differently by each firm, and for different purposes.
Article
Purpose This paper seeks to contribute to the RBV by focusing on a central construct, the “Keystone step”, within the firms' capability management field. It aims at providing a conceptual framework for top managers to understand the main related issues and steps, and to position their own organizational perspective. Design/methodology/approach The study explores the associated conceptual and empirical literature, borrowing from a strategic and a cognitive perspective, and defines and characterizes the central construct. Findings The author identifies a three‐step managerial process to handle capabilities: the Analytical step, the Action step, and the Keystone step. After briefly reviewing the resource‐based view, he suggests definitions and critical dimensions to design a conceptual frame articulated around the Keystone step, within which top managers can position and build their own approach. The critical founding rationale of capability management, rooted in underlying assumptions and beliefs, often implicit, hidden or neglected, increases the odds of blind managerial conceptual foundations. The author's claim focuses on the criticality of the Keystone step and the necessity of introspection to achieve sound strategic and capabilities‐related decisions. Implications Managers must recognize the importance of the Keystone step, devote resources to understand their own organizational “RBV position”, and acknowledge the mental flexibility to do so. The RBV should shift from an epistemology of “possession” to an epistemology of “embodiment”. Originality/value The paper offers an original vision of the capabilities management within the RBV, details out the issues of the current conceptual foundation of that managerial activity, and offers propositions for the Keystone step construct.
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As a potential theory, the elemental resource-based view (RBV) is not currently a theoretical structure. Moreover, RBV proponents have assumed stability in product markets and eschewed determining resources' values. As a perspective for strategic management, imprecise definitions hinder prescription and static approaches relegate causality to a "black box." We outline conceptual challenges for improving this situation, including rigorously formalizing the RBV, answering the causal "how" questions, incorporating the temporal component, and integrating the RBV with demand heterogeneity models.
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We build on an emerging strategy literature that views the firm as a bundle of resources and capabilities, and examine conditions that contribute to the realization of sustainable economic rents. Because of (1) resource-market imperfections and (2) discretionary managerial decisions about resource development and deployment, we expect firms to differ (in and out of equilibrium) in the resources and capabilities they control. This asymmetry in turn can be a source of sustainable economic rent. The paper focuses on the linkages between the industry analysis framework, the resource-based view of the firm, behavioral decision biases and organizational implementation issues. It connects the concept of Strategic Industry Factors at the market level with the notion of Strategic Assets at the firm level. Organizational rent is shown to stem from imperfect and discretionary decisions to develop and deploy selected resources and capabilities, made by boundedly rational managers facing high uncertainty, complexity, and intrafirm conflict.
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What if rent from a competitive advantage is appropriated so it cannot be observed in performance measures? The resource-based view was not formulated to examine who will get the rent. Yet, this essay argues that the factors leading to a resource-based advantage also predict who will appropriate rent. Knowledge-based assets are promising because firm-specificity, social complexity, and causal ambiguity make them hard to imitate. However, the roles of internal stakeholders may grant them a great deal of bargaining power especially relative to investors. This essay integrates the resource-based view with the bargaining power literature by defining the firm as a nexus of contracts. This new lens can help to explain when rent will be generated and, simultaneously, who will appropriate it. In doing so, it provides a more robust theory of firm performance than the resource-based view alone. It is also suggested that this lens might be useful for examining other theories of firm performance.
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This paper examines the nature of the core capabilities of a firm, focusing in particular on their interaction with new product and process development projects. Two new concepts about core capabilities are explored here. First, while core capabilities are traditionally treated as clusters of distinct technical systems, skills, and managerial systems, these dimensions of capabilities are deeply rooted in values, which constitute an often overlooked but critical fourth dimension. Second, traditional core capabilities have a down side that inhibits innovation, here called core rigidities. Managers of new product and process development projects thus face a paradox: how to take advantage of core capabilities without being hampered by their dysfunctional flip side. Such projects play an important role in emerging strategies by highlighting the need for change and leading the way. Twenty case studies of new product and process development projects in five firms provide illustrative data.
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How should we understand why firms exist? A prevailing view has been that they serve to keep in check the transaction costs arising from the self-interested motivations of individuals. We develop in this article the argument that what firms do better than markets is the sharing and transfer of the knowledge of individuals and groups within an organization. This knowledge consists of information (e.g., who knows what) and of know-how (e.g., how to organize a research team). What is central to our argument is that knowledge is held by individuals, but is also expressed in regularities by which members cooperate in a social community (i.e., group, organization, or network). If knowledge is only held at the individual level, then firms could change simply by employee turnover. Because we know that hiring new workers is not equivalent to changing the skills of a firm, an analysis of what firms can do must understand knowledge as embedded in the organizing principles by which people cooperate within organizations. Based on this discussion, a paradox is identified: efforts by a firm to grow by the replication of its technology enhances the potential for imitation. By considering how firms can deter imitation by innovation, we develop a more dynamic view of how firms create new knowledge. We build up this dynamic perspective by suggesting that firms learn new skills by recombining their current capabilities. Because new ways of cooperating cannot be easily acquired, growth occurs by building on the social relationships that currently exist in a firm. What a firm has done before tends to predict what it can do in the future. In this sense, the cumulative knowledge of the firm provides options to expand in new but uncertain markets in the future. We discuss at length the example of the make/buy decision and propose several testable hypotheses regarding the boundaries of the firm, without appealing to the notion of “opportunism.”
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Although the resource-based view (RBV) is one of the most popular and fruitful areas of strategy research, it often perplexes scholars from other disciplines. Also, it is unclear whether strategy scholars themselves agree on the RBV's basic issues and premises. To clarify the contribution of the RBV, in this paper we elaborate its basic tenets and relate them to other current research on interfirm performance variance. We suggest a more expansive discussion of sustained differences among firms and thereby develop a broad theory of competitive heterogeneity. Copyright © 2003 John Wiley & Sons, Ltd.
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Two separately developed views within the strategic management literature elucidate the source of a firm's competitive advantage based on the internal attributes of the firm: the resource-based view (Wernerfelt, 1984) and the distinctive competence view (Selznick, 1957). As developed in the literature, however, both views neglect important dimensions which inhibit the achievement of competitive advantage. These dimensions are resource weaknesses and distinctive inadequacies. Accounting for weaknesses and inadequacies exposes important choice-sets confronting management in making resource investments, and of time-related dimensions in developing sustainable advantage. Considering the effects of weaknesses and inadequacies provides insight on the limits to firm growth and to sustainability of competitive advantage. Theory on developing competitive advantage may lack explanatory and predictive power if it excludes these perspectives, which if included may also improve prescription for practitioners.
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Interfirm cooperation and its performance implications are examined in the context of two widely cited theoretical approaches to organizations. Broadly speaking, the resource-based view suggests that firms seek to capitalize on and increase their capabilities and endowments, whereas organizational economics asserts that firms focus on minimizing the costs of organizing. Although these perspectives agree on managers' likely actions in many areas, their predictions diverge when interfirm cooperation is considered. We take a step toward reconciling these differences by positing that firms place resource-based concerns in front of considerations from organizational economics when deciding whether or not to engage in interfirm cooperation. We examined this prediction using data from 94 publicly held restaurant chains. The results support our integrated view, but also suggest that giving primacy to resource concerns detracts from the performance of some firms. We derive several implications of these findings in an effort to guide subsequent inquiry.
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Here I examine each of the major issues raised by Priem and Butler (this issue) about my 1991 article and subsequent resource-based research. While it turns out that Priem and Butler's direct criticisms of the 1991 article are unfounded, they do remind resource-based researchers of some important requirements of this kind of research. I also discuss some important issues not raised by Priem and Butler - the resolutions of which will be necessary if a more complete resource-based theory of strategic advantage is to be developed.
Article
This article continues to operationally define and test the resource- hased view of the firm in a study of the major U.S. film studios from 1936 to 1965. We found that property-hased resources in the form of exclusive long-term contracts with stars and theaters helped financial performance in the stable, predictable environment of 1936-50. In con- trast, knowledge-based resources in the form of production and coordi- native talent and budgets boosted financial performance in the more uncertain (changing and unpredictable) post-television environment of 1951-65.
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This article analyzes the role of top management as a key resource in obtaining sustained, competitive advantage for thefirm. The nature of managerial skills is examined and linked to isolating mechanisms and firm rents. The article aims to refocus attention on the importance of managerial expertise as a rent-generating firm resource and implies greater alignment of top management-shareholder interests than in many applications of agency theory to the firm.
Article
Interfirm cooperation and its performance implications are examined in the context of two widely cited theoretical approaches to organizations. Broadly speaking, the resource-based view suggests that firms seek to capitalize on and increase their capabilities and endowments, whereas organizational economics asserts that firms focus on minimizing the costs of organizing. Although these perspectives agree on managers’ likely actions in many areas, their predictions diverge when interfirm cooperation is considered. We take a step toward reconciling these differences by positing that firms place resource-based concerns in front of considerations from organizational economics when deciding whether or not to engage in interfirm cooperation. We examined this prediction using data from 94 publicly held restaurant chains. The results support our integrated view, but also suggest that giving primacy to resource concerns detracts from the performance of some firms. We derive several implications of these findings in an effort to guide subsequent inquiry. Copyright © 1999 John Wiley & Sons, Ltd.
Article
The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.
Article
Now nearing its 60th printing in English and translated into nineteen languages, Michael E. Porter's Competitive Strategy has transformed the theory, practice, and teaching of business strategy throughout the world. Electrifying in its simplicity -- like all great breakthroughs -- Porter's analysis of industries captures the complexity of industry competition in five underlying forces. Porter introduces one of the most powerful competitive tools yet developed: his three generic strategies -- lowest cost, differentiation, and focus -- which bring structure to the task of strategic positioning. He shows how competitive advantage can be defined in terms of relative cost and relative prices, thus linking it directly to profitability, and presents a whole new perspective on how profit is created and divided. In the almost two decades since publication, Porter's framework for predicting competitor behavior has transformed the way in which companies look at their rivals and has given rise to the new discipline of competitor assessment. More than a million managers in both large and small companies, investment analysts, consultants, students, and scholars throughout the world have internalized Porter's ideas and applied them to assess industries, understand competitors,, and choose competitive positions. The ideas in the book address the underlying fundamentals of competition in a way that is independent of the specifics of the ways companies go about competing. Competitive Strategy has filled a void in management thinking. It provides an enduring foundation and grounding point on which all subsequent work can be built. By bringing a disciplined structure to the question of how firms achieve superior profitability, Porter's rich frameworks and deep insights comprise a sophisticated view of competition unsurpassed in the last quarter-century. Book Description Publication Date: June 1, 1998 | ISBN-10: 0684841487 | ISBN-13: 978-0684841489 | Edition: 1 Clique Aqui
Article
Summary This paper explains that the resource-based view essentially addresses issues of competitive strategy, but by integrating some arguments from its evolutionary version, the dynamic capability view, it can be extended to inform our understanding of corporate-level strategy. We concentrate on the issue of value creation from corporate centres and ask how the centre can possess or provide resources. The primary dynamic capabilities identified by Teece, Pisano and Shuen (1997) are elaborated into six distinct modes of resource creation. Each mode is considered in relation to a set of organizational design parameters. We then propose resource-creating configurations that are congruent with respect to the modes and the required states of the design parameters. We point out areas of tension that are likely to arise if corporations try to combine different modes of resource creation. We conclude that corporate centres may possess resources but must display dynamic capabilities otherwise they will destroy shareholder value.
Article
How can organizations manage the cognitive processes by which a firm invests in resources for competitive advantage? Studies of organizational culture, as currently framed, have not provided adequate answers to this question. By focusing either on culture as underlying beliefs or on culture as behavioral manifestations, these studies have overlooked the critical links between beliefs and behaviors that are at the very core of managing cognitive processes for sustained advantage. This article reframes the culture concept to highlight the role of contextual identities in linking behaviors and their social meaning in organizations. Drawing on theories from cultural linguistics and structural anthropology, it argues that cognitive processes in organizations do not directly reflect either behaviors or underlying beliefs. Rather, they represent the interface between the two. To manage cognitive processes for competitive advantage requires that we attend to the identities by which people make sense of what they do in relation to a larger set of organizational norms.
Article
Resource-based theory has tended to focus on the development and protection of valuable resources. What determines a valuable resource has received less attention. This paper addresses three related issues concerning value and valuable resources: what is value? how is it created? and who captures it? We have tried here to integrate different strands of the literature to address these questions. First, we argue that a distinction needs to be made between use value, which is subjectively assessed by customers, and exchange value, which is only realized at the point of sale. Second, we argue that the source of new use values is the labour performed by organizational members, and that firm profits can be attributed to this labour. Profit differences between competing firms derive from labour performing heterogeneously across firms. Finally, we argue that value capture is determined by the perceived power relationships between buyers and sellers.
Article
Strategic management theories invoke the concept of competitive advantage to explain firm performance, and empirical research investigates competitive advantage and describes how it operates. But as a performance hypothesis, competitive advantage has received surprisingly little formal justification, particularly in light of its centrality in strategy research and practice. As it happens, the core hypothesis—that competitive advantage produces sustained superior performance—finds little support in formal deductive or inductive inference, and the leading theories of competitive advantage incorporate refutation barriers that preclude meaningful empirical tests. This article explores the logical and philosophical foundations of the competitive advantage hypothesis, locating its philosophical foundations in the epistemologies of Bayesian induction, abductive inference and an instrumentalist, pragmatic philosophy of science. Copyright © 2001 John Wiley & Sons, Ltd.
Article
Heterogeneity among rivals implies that each firm faces a unique competitive set, despite overlapping market domains. This suggests the utility of a firm-level approach to competitor identification and analysis, particularly under dynamic environmental conditions. We take such an approach in developing a market-based and resource-based framework for scanning complex competitive fields. By facilitating a search for functional similarities among products and resources, the framework reveals relevant commonalities in an otherwise heterogeneous competitive set. Beyond its practical contribution, the paper also advances resource-based theory as a theory of competitive advantage. Most notably, we show that resource substitution conditions not only the sustainability of a competitive advantage, but the attainment of competitive advantage as well. With equifinality among resources of different types, the rareness condition for even temporary competitive advantage must include resource substitutes. It is not rareness in terms of resource type that matters, but rareness in terms of resource functionality. Copyright © 2003 John Wiley & Sons, Ltd.
Article
Much organizational activity and academic research relies on the accuracy of managers' perceptions. However, few studies have assessed the accuracy of managerial perceptions, and these studies indicate that managers' perceptions are often very inaccurate. This article discusses an odyssey into the study of managerial perceptions spanning two decades and two empirical studies. It depicts the evolution of research questions, samples, study designs, problems with such research and inferences drawn. It also identifies some errors that tend to be especially large and suggests some corrective actions. These corrective actions include using education and training to inform managers about organizational and environmental properties, exploiting improved technology, helping organizations to identify and correct misperceptions and designing robust organizations that can tolerate misperceptions.
Article
Problems in the micro-foundations of neoclassical theory, especially in partial equilibrium analysis, are being imported into the resource-based view. This paper critiques neoclassical theory and proffers new concepts more suited to strategy scholars. In particular, we develop the concepts of simple rents, rent sensitivity analysis, and the payments perspective. Copyright © 2003 John Wiley & Sons, Ltd.
Article
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.
Article
Here I examine each of the major issues raised by Priem and Butler (this issue) about my 1991 article and subsequent resource-based research. While it turns out that Priem and Butler's direct criticisms of the 1991 article are unfounded, they do remind resource-based researchers of some important requirements of this kind of research. I also discuss some important issues not raised by Priem and Butler-the resolutions of which will be necessary if a more complete resource-based theory of strategic advantage is to be developed.
Article
This paper develops an integrated framework of risk management and strategic competitive advantage that incorporates behavioural and economic notions of risk. The resulting model argues for the importance of risk-taking to sustainable competitive advantage and ultimately to firm performance. The model integrates framing effects of attainment discrepancy, transaction costs from implicit contracts theory and capital costs from finance theory. The proposed model suggests that continuous risk-taking by firms may help sustain competitive advantage and thus lower firm risk. This, in turn, effectively increases market returns to shareholders by ensuring earnings growth while simultaneously reducing the risk premium discount attached to a firm’s future income stream.
Article
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 overtime 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.ABSTRACT FROM AUTHOR
Article
Strategic Liabilities are processes and tangible and intangible holdings that are firm-specific, context-specific and create competitive disadvantage. They are scarce, inconvertible, costly, and appropriated. The concept of Strategic Liabilities contrasts and complements the resource-based view's Strategic Assets. A firm is likely to possess Strategic Liabilities at some time because these liabilities can originate from endowments, from bad luck, from Strategic Assets, from rival actions, and from unfavourable changes in context. They represent the other side of the firm's ledger often implicitly ignored in the strategy literature. Thus, the formal definition and analysis of Strategic Liabilities is warranted. Copyright Blackwell Publishing Ltd 2004.
Article
Resource-based theory (RBT) is a prime example of a theory that integrates a management perspective with an economics perspective. As such, its challenge is to keep its arguments logically consistent and clear, despite the risk of their becoming entangled, due to competing and possibly conflicting theoretical influences. We argue, in this paper, that to meet this challenge, it is essential to understand the limits to the domain of RBT. Unless RBT is understood as a resource-level and efficiency-oriented analytical tool, its contribution cannot be understood and appreciated fully. Incorporating aspects of economic theory that fall outside this domain will not increase its power and will only add to the confusion. Continued efforts to increase the analytic precision of RBT and to elaborate its economic logic, however, are worthwhile pursuits. To these aims, then, we provide a sharper definition of competitive advantage, linking this term to value creation and to demand side concerns. Similarly, we provide an economically meaningful definition of value and more precise definitions of critical resources and of economic rents. This allows us to trace a clearer trail of logic, consistent with both the management and the economics perspectives, leading from critical resources to the generation of rents. Copyright © 2003 John Wiley & Sons, Ltd.
Core competence and competitive advantage: A model and illustrative evidence from the pharmaceutical industry. In Com-petence-based Competition Value creation versus value capture: Towards a coherent definition of value in strategy
  • W C Bogner
  • H Thomas
Bogner, W.C. and Thomas, H. (1994) Core competence and competitive advantage: A model and illustrative evidence from the pharmaceutical industry. In Com-petence-based Competition, (eds) G. Hamel and A. Heene. John Wiley and Sons, Chichester. Bowman, C. and Ambrosini, V. (2000) Value creation versus value capture: Towards a coherent definition of value in strategy. British Journal of Management 11, 1–15.
Dynamic capabilities and strategic management
  • Teece