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The cornerstones of competitive advantage: A resource-based view
Abstract
This paper elucidates the underlying economics of the resource-based view of competitive advantage and integrates existing perspectives into a parsimonious model of resources and firm performance. The essence of this model is that four conditions underlie sustained competitive advantage, all of which must be met. These include superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition. In the concluding section, applications of the model for both single business strategy and corporate strategy are discussed.
... Resource-based theory, knowledge, and capabilities RBT considers heterogeneous firm resources that vary in their potential to create competitive advantage (Barney, 1991;Leiblein, 2011;Peteraf, 1993;Wernerfelt, 1984). Firms that possess or control resources that are valuable (i.e., contribute to effectiveness and efficiency) and rare (i.e., not widely held) are likely to experience competitive advantage because they are better equipped to create more economic value than their more marginalized competitors (Peteraf & Barney, 2003). ...
... Firms that possess or control resources that are valuable (i.e., contribute to effectiveness and efficiency) and rare (i.e., not widely held) are likely to experience competitive advantage because they are better equipped to create more economic value than their more marginalized competitors (Peteraf & Barney, 2003). However, the scarcity of valuable resources tends to be temporary unless isolating mechanisms limit their distribution to other firms (Peteraf, 1993). Thus, achieving a more sustainable competitive advantage requires that resources be not only valuable and rare but also inimitable (i.e., difficult to replicate or substitute) and organized for exploitation within a firm's structure and processes (i.e., valuable, rare, inimitable, and organized (VRIO) criteria: Barney, 1986;Barney & Clark, 2007). ...
... Instead of competitive advantage, organizations implementing organizational structures experience a state of competitive parity because common knowledge is generalizable, transferable, and easily replicable by competitors. In other words, it may be valuable, but it is not rare (Barney, 1991;Leiblein, 2011;Peteraf, 1993;Wernerfelt, 1984). ...
Extant theory proposes that stakeholders reward organizations that behave ethically and punish those that don’t. Taken at face value, this dynamic implies that organizations prioritizing ethical concerns should have competitive advantages augmenting performance. Unfortunately, hoped-for advantages often fail to materialize. Examining this difficult reality, we explore how pluralistic ethical standards manifest in ways that are not obvious because they are often locally and temporally attached to stakeholder groups. Further, we adopt a resource-based view of organizations and draw on literature related to dynamic capabilities and stakeholder theories to argue that ethics-related organization-level behavior can only lead to sustainable competitive advantages when there is continued competence across present and future-oriented systems. As a whole, our work provides a useful theoretical framework for addressing the pragmatic difficulties associated with enacting universal ethical principles in unique situations.
... The RBV (Barney, 1991;Peteraf, 1993;Wernerfelt, 1984) is commonly used to explain the impact of IT/IS on entrepreneurship. IT plays four major roles in entrepreneurial operations: acting as a facilitator, easing start-up operations, acting as a mediator for new venture operations, representing the outcome of entrepreneurial operations, and (as ubiquity) becoming the business model itself (Steininger, 2019). ...
... This empirical study aims to investigate the antecedents of software adoption in Vietnamese enterprises by combining IDT (Rogers, 2003), TOE framework (Tornatzky & Fleischer, 1990), and RBV (Barney, 1991;Peteraf, 1993;Wernerfelt, 1984). It also tested the relationship between software adoption and firm performance and the moderating role of software type (ERP/non-ERP) in these relationships. ...
... This relationship is supported by previous studies such as Bharadwaj (2000), Tippin and Soshi (2003), Zhu and Kraemer (2005), Zhu et al. (2006), Jean et al. (2008, , and Gangwar (2017). This is also in line with the RBV (Barney, 1991;Peteraf, 1993;Wernerfelt, 1984) and IS Success Model (DeLone & McLean, 1992. ...
In an uncertain world, businesses are increasingly interested in implementing enterprise management information technology (IT). Because information systems represent a crucial strategic management tool, IT must be implemented to enhance its effectiveness. Many organizations invest in IT solutions ranging from individual programs to integrated management systems to drive innovation and improve performance. However, studies on IT acceptance and effectiveness have not been conducted thoroughly. This study explored a path model by integrating innovation diffusion theory (IDT), the technology-organization-environment (TOE) framework, and psychological factors, namely attitude and behavioral intention to use software to interpret software adoption in information systems. This study also examined software adoption and firm performance based on the resource-based view (RBV). A PLS analysis based on data from 203 Vietnamese enterprises confirms that technological elements, including ICT infrastructure, perceived compatibility, and relative advantages, are correlated more strongly with software adoption than organizational and environmental elements. Behavioral intention plays a significant role in software acceptance, and software adoption increases organizational performance. These findings demonstrate that technological solutions and user behavioral intentions increase an organization’s acceptance of technological innovation. These results support business administrators in making technological innovation and development strategy decisions.
... Los Recursos y competitividad en Peteraf (1993), indica que los cimientos de las ventajas competitivas como una visión basada en recursos, refuerza todos los huecos dejados por Barney para mostrar por qué los recursos son inimitables y valiosos. También identifica que los recursos sí se pueden mover. ...
... Tiene como supuestos que las empresas deben ser heterogéneas y poseen una combinación única de recursos, así como una forma única de utilizarlos y esto es lo que fundamenta la ventaja competitiva de cada una. Por lo tanto, la diversidad de las empresas, la inmovilidad de los recursos y la existencia de mercados imperfectos aseguran que se tengan ventajas competitivas tal como se muestra en la figura 4. Estos mercados imperfectos se dan porque antes de la competencia en los mercados no se toman las decisiones analizando todas las posibles variables y después de la competencia en los mercados no se conoce bien a todos los competidores, es decir hay poca información (Peteraf, 1993). ...
... Sus reflexiones las inicia con Penrose (1959), menciona a Wernerfelt (1984), Barney (1991) y Peteraf (1993), entre otros. Asimismo, realiza una revisión de la literatura en la que identifica al capital humano, la cultura, la experiencia profesional y al conocimiento (figura 6) como variables independientes en la aproximación de la heterogeneidad, entre otras muchas variables. ...
Se analizó el estudio del capital humano en las empresas a través de la investigación documental y cualitativa de diferentes modelos para diseñar el óptimo que contempla los factores que deben considerarse como parte de la administración del mismo. El capital humano es uno de los elementos clave al ser parte de todas las áreas funcionales en las empresas que dan valor y generan un mayor retorno financiero. Si el capital humano es administrado de forma adecuada y se involucran los factores como el fomento de la experiencia profesional entendida como la permanencia de los trabajadores y sus ascensos dentro de la empresa, la actualización del conocimiento como apoyo a los trabajadores en capacitación, así como la educación en formación académica al reclutar personal con niveles académicos de mayor nivel, permitirá analizar la correlación que existe entre ellos para generar desempeño financiero y pueda llega a convertirse en una ventaja competitiva para las empresas.
... While tangible assets often lack strategic value due to their tradability and imitability, intangible assets are more likely to be heterogenous and imperfectly mobile between firms and thus typically serve as the strategic resources underlying a firm's ability to reliably generate revenues (Bergh et al., 2024;Srivastava et al., 2001). Among these, intellectual property (IP) is particularly distinctive (Magelssen, 2019): its rarity and inimitability are legally protected, meaning that two of the requisite characteristics of a strategic resource are inherent to IP (Peteraf, 1993). This holds insofar as the institutional environment enforces this protection; yet, despite recognition that the strategic value of resources is highly contextual, the RBT literature has not fully addressed how a globalized business environment challenges this widely held assumption (Castaldi et al., 2024;Prud'homme & Tong, 2023). ...
... RBT conceptualizes firm performance as the ability to generate greater economic returns than competitors through the control and deployment of firm-specific strategic resources (Barney, 1986(Barney, , 1991Peteraf, 1993). To be 'strategic', resources must be valuable and nonsubstitutable by other resources in achieving a desired objective, and rare and inimitable among competitors. ...
... Accordingly, our findings contribute to both confirming and 'revitalizing' RBT (Barney et al., 2011;Bergh et al., 2024) and questioning conventional assumptions regarding the value of resources as a function of their intrinsic characteristics (Barney et al., 2021a;Peteraf, 1993). In doing so, we also contribute to the underdeveloped literature examining the antecedents of firm risk (Edeling et al., 2021). ...
... Unlike Classical and Adaptive strategies, which focus on environmental analysis and strategic flexibility, RBV asserts that a firm's unique assets, capabilities, and knowledge bases determine its long-term success (Grant, 1991). The framework is built upon the VRIN (valuable, rare, inimitable, and non-substitutable) criteria, where only resources meeting these conditions contribute to a firm's ability to outperform competitors (Peteraf, 1993). ...
... to provide a sustainable advantage (Peteraf, 1993). ...
This study explores how artificial intelligence (AI) can enhance strategic decision-making by integrating with four established strategic schools: Classical, Adaptive, Resource-Based, and Processual. While AI improves data-driven insights, it lacks the strategic foresight, contextual awareness, and ethical judgment inherent in traditional frameworks. Using a structured literature review, this conceptual study evaluates the synergy between AI and strategic schools. Sources were selected from peer-reviewed databases, including Scopus and Web of Science, using keywords such as "AI-driven strategy," "strategic management," and "decision support systems." The findings reveal that AI enhances Classical strategy through predictive analytics and scenario planning, strengthens Adaptive strategy via real-time responsiveness, supports RBV by optimizing resource identification, and complements Processual strategy by facilitating continuous learning. However, AI’s limitations in handling tacit knowledge, ethical considerations, and contextual judgment highlight the need for human oversight. This study proposes a hybrid framework where AI supports, rather than replaces, strategic decision-making. It offers actionable recommendations for business leaders, including AI-powered strategy frameworks, governance policies for ethical AI deployment, and human-AI collaboration to navigate dynamic business environments effectively.
... Em convergência com o exposto, estão os recursos quePeteraf (1993) chama de recursos socialmente complexos. Ela explica que eles se desenvolvem ao longo do tempo, por meio da interação e do convívio entre os indivíduos. ...
... Ela explica que eles se desenvolvem ao longo do tempo, por meio da interação e do convívio entre os indivíduos. Eles conferem ao grupo ou à empresa características únicas, que são difíceis de imitar ou reproduzir, uma vez que se baseiam em entendimentos complexos e tácitos, que não são facilmente acessíveis a pessoas fora do grupo(Peteraf, 1993).Logo, a extensão universitária pode auxiliar na identificação e definição de atributos específicos dos alimentos que são produzidos em comunidades tradicionais e apresentam potencial de comercialização maiores, promovendo a certificação regional(Souza-Filho;Miranda, 2019). Esse intercâmbio entre universidade e comunidades vulneráveis economicamente, via extensão, ...
A presente pesquisa tem por objetivo analisar a produção em torno dos conceitos de tecnociência solidária e política cognitiva na abordagem das pesquisas sobre extensão universitária. Por meio de uma pesquisa bibliográfica que se utilizou da ferramenta ProKnow-C, foram analisados 10 estudos que se ocupam da produção de alimentos em comunidades tradicionais. Assim, o estudo fez um levantamento das lacunas existentes em pesquisas futuras que abordem os projetos de extensão universitária em comunidades tradicionais com foco na produção de alimentos. Dessa forma, concluiu-se que há uma série de tópicos e características que podem ser exploradas em pesquisas futuras, em especial os confrontos culturais e a mudança nas políticas de gestão e direcionamentos dos saberes acadêmicos.
... It is inspired by earlier work done on digitally assisted balanced decision-making in agricultural farms. It builds on and reconciles that work with currently known and used value creation models (Osterwalder & Pigneur, 2010, Osterwalder et al. 2015, 2020 as well as it relies on the Resource-Based Theory of the firm (Wernerfelt, 1984(Wernerfelt, , 1995 "Ovidius" University Annals, Economic Sciences Series Volume XXIV, Issue 1 /2024 Schoemaker & Amit,1993, Barney, 1986, 1991, Grant,1991, Peteraf, 1993, Teece et al.,1997 in order to make the model applicable to the management of a broad spectrum of organizations. Similar to its earlier version of the Value Creation Diamond (Markovits, 2023) the knowledge metaphor construction method (Bratianu & Bejinaru, 2019) was kept to draw on the known (the source) domains of the "hexagon surface", "pyramid" and its "height" as well as the "diamond" to the target domains of "effort", "performance" and "value creation". ...
... In order to broaden the scope of the firms for which it could apply, The Polygon of Resources used in the Value Creation Diamond (Markovits, 2023) was updated to reflect more prominently the views of the Resource-Based Theory of the firm (Wernerfelt,1984, 1995, Amit & Schoemaker 1993, Barney, 1986, 1991, Grant,1991, Peteraf, 1993 using the constructs of tangible (i.e. financial, physical and human resources) vs intangible assets (Teece et al.,1997) (i.e. ...
The Sustainable Value Creation Diamond is a metaphorical model for leaders in any firm aiming to create sustainable value. The paper's purpose is to further develop earlier original work done by the author initially focused on farms, making it now applicable to all types of firms. It builds on the Resource-Based Theory of the firm broadening the model's use to the management of a wide spectrum of organizations. The importance of "Time" in "Value Creation" is recognized through the construct of "Time to Value Capture". The diamond metaphor's source domain meaning is that of lasting and sought after value. It is an original graphical model and a powerful illustration of the core claims of the model. The model could be used as a blueprint in the decisional process of an organization as well as an educational tool to illustrate the synergies in the existent literature on firms' performance.
... Barney, 1986;J. Barney, 1991;Peteraf, 1993). Proposed a model of productive, effective management and diversification strategies (Utami & Alamanos, 2022) . ...
... Companies tend to develop new products when they enter a new market by adjusting their resources to compete (Andersen & Suat Kheam, 1998). Superior resources are more 'efficient' in the sense that they enable firms to produce more economically and/or better satisfy customer wants (Peteraf & Barney, 2003 Wernerfelt (1984) Analyze the company more from the side of resources than products ( Firms as bundles of resources) Rumelt (1984) Firms as bundles of productive resources, maintain a competitive advantage by implementing an isolating mechanism J. B. Barney ( 1986b) Product market strategy implementation developing strategic factor markets J. B. Barney (1986b) A company's character and culture can be a source of sustainable competitive advantage if it is rare, valuable and cannot be perfectly imitated Cool & Dierickx (1989) Corporate sustainability depends on how easily a company's superior resources are replicable and replaceable Peteraf (1993) Company resources are scarce and the level of efficiency will encourage companies to obtain superior performance Nonaka & Takeuchi (1995) Ability and create organizational knowledge is the reason for the success and excellence of a company (SECI Model) ...
Objective: This study aims to analyze the effect of competitive advantage on sustainable competitive advantage, analyze the effect operating efficiency on sustainable competitive advantage, analyze the effect intellectual capital on sustainable competitive advantage. Theoritical framework: This research is based on several theories that support it, including Resource-based theory (RBT) and Stakeholder Theory. RBT theory suggests that sustainable excellence can be done by making innovations that are difficult to imitate or imitate by others. Stakeholder Theory gives advice on how businesses should handle their interactions with stakeholders to encourage the creation of competitive resources and secure a long-term competitive edge. Method: This research uses a quantitative approach and the type of data used is panel data. The data analysis technique used panel data regression to test or prove the hypothesis. The research population is all banks listed on the Indonesia Stock Exchange (IDX) for the 2012-2021 period. The sample is determined using certain criteria so that a total sample of 31 banks is obtained. Hypothesis testing used panel data regression random effect model (REM) or generalized least squares (GLS). Result and conclusion: The results of the study show that competitive advantage has a significant positive effect on sustainable competitive advantage in the banking sector. Operating efficiency and intellectual capital variables were found to have no significant effect on sustainable competitive advantage. Implication of the research: The outcomes help practitioners and policy-makers’ enhance their practices to reflect sustainable business through competitive advantages, efficiency and intellectual capital. Originality/value: This paper contributes to sustainability research of banking system by developing a conceptual framework, which may be a basis for integrating the variety of management-related sustainability research. It further adds to research into competitive advantage efficiency and intellectual capital by clarifying how firms may profit from sustainability.
... The resource-based view (RBV) of growth hacking is particularly germane to digital companies where the importance of the scalability, hyperspecialisation and hyperscaling effects comes into play. Early interventions of notable scholars (Peteraf, 1993;Miller and Shamsie (1996);Kim ＆ Mahoney, 2002;Fahy,2000) have contributed toward the empirical study and conceptualization of RBV. Kim ＆ Mahoney (2002) discuss the role of hybridizing the resource-based framework to elaborate the potential value creation through complementary the property rights theory that identifies the realization of value creation. ...
... In this way firms can develop distinctive capabilities that lead towards swift company growth and innovation through the process of growth hacking. This includes digital marketing skills, big data and analytics competency and agile innovation capacities (Peteraf, 1993). This view helps firms integrate distinctive resources so that a company can prosper with the help of growth hacking. ...
The Growth Hacking process brings new opportunities for business which are achieved through new strategies such as hyper-scalability, hyperspecialization and human-based competitive advantage. However this is a field which has not been deeply studied. In order to bridge this gap, by applying the lens of resource-based theory of the digital firm, this study is based on the findings from 20 semi-structured interviews with growth orientated entrepreneurs from a diverse range of sectors based in the UK. The study applies a content analysis and inductive approach and the results show that in the competitive marketplace new digital skills are needed to grow a successful business and these skills should be balanced with the introduction of any new technologies. The requirement for human skills and engagement is necessity for the development and leverage of unique capabilities and competencies to drive growth hacking strategies. As a result, these new strategies allow entrepreneurs to exploit new opportunities and overcome business challenges.
... Según Peteraf (1993), deben cumplirse tres condiciones adicionales que subyacen a la ventaja competitiva: limites ex post a la competencia, lo cual implica que las ventajas otorgadas por lo recursos se mantengan en el tiempo y no sean erosionadas fácilmente por los competidores; movilidad imperfecta de recursos, lo cual sugiere que los recursos valiosos no sean fácilmente transferibles y acoplables a otras empresas; y limites ex ante a la competencia, lo que significa la adquisición de recursos valiosos antes que los competidores los agoten. ...
The argument that not all information technologies qualify as strategic resources may be linked to the lack of a precise and non-abstract definition or characterization of these technologies as a concept, which hinders the ability to compare and contrast results. This research aims to develop a framework for categorizing and classifying information technologies tools by evaluating their intrinsic potential to enhance organizational performance. Based on the resource-based view, from the perspective of the relative usefulness proposed by Maslow and from the agreement of experts, general criteria are established to categorize and classify these tools into basic, intermediate, and advanced.
... et al., 2003). This resource-based approach might help entrepreneurs to achieve sustainable competitive advantage (Akio, 2005;Barney, 1991;Grant, 1991;Kraaijenbrink et al., 2010;Meso & Smith, 2000;Peteraf, 1993;Wernerfelt, 1984). ...
... Resource-based view (RBV) theory refers to a collection of firms' internal assets and resources that make them fundamentally distinctive from competitors, ultimately achieving competitive advantage [71]. The first key element of RBV is a firm's resource heterogeneity and capabilities, assuming that a firm possesses unique resources and can potentially be outstanding in particular activities for competitive advantage [57]. ...
... Meanwhile according to Peteraf (1993), the resource-based theory explains that the various industry conditions cannot be the only reasons for the different profitability of companies. Actually, the different types of the ownership structure have considerable 'resource heterogeneity' so that it can bring the different impacts on the firm performance. ...
The published empirical and analytical corporate governance literatures on the influence of ownership structure on company performance are still controversial. In our study, the correlation between ownership structure and firm performance is explored for 66 non-financial listed companies in UK over period from 2011 to 2015. Meanwhile this paper utilized value of Tobin’s q and ROA as the firm performance respectively in order to clarify comprehensive analysis. The results illustrated that institutional ownership does not have impacts on firm performance. Meanwhile, as the widely diffuse ownership structure is common in UK, our study shows that there is no correlation between first largest shareholder and company performance. Moreover this paper found the relation between government ownership and company performance is non-linear. In the final analysis, shareholding by the domestic shareholders is negatively correlated to corporate performance.
... Such a framework will allow us to answer whether A.I. is implemented for a particular H.R. process. Will it act as an asset that allows the firm to build a unique competitive advantage (Barney, 1991;Conner, 1991;Peteraf, 1993)? Will AI allow the firm to exploit opportunities and counter adverse risks and threats that the environment may pose (Barney,1991)? ...
Artificial Intelligence is expected to be a value-adding intervention in HRM processes; however, there is still a large gap between its perception of value-addition and its actual utility. In this article, we utilize transaction cost and resource-based views to build a framework to assess the suitability and potential adoption of AI-based tools in specific HRM processes. AI-based tools add value when they streamline operations and bring efficiencies by automating repetitive tasks. The transaction cost view in our framework assists in assessing the value created. Also, the resource-based perspective assists in understanding how AI builds the strategic capabilities of HR. We first review articles that look at the current state of AI literature. We then apply our framework to four critical HRM processes-recruitment and selection, performance management, training and development, and compensation and benefits. Based on our framework, we then develop propositions. Our propositions act as a roadmap for the strategic adoption of AI tools, ensuring smoother integration with existing HR processes. Our study adds to the HRM literature by providing a structured analysis of AI's impact on HR processes. We conclude by highlighting emerging issues that need future attention from practitioners and scholars.
... Importantly, the institutional theory lens also provides a novel conceptual innovation in the study of supply-chain collaboration -which is currently dominated by the RBV approach. This dominant approach is insufficient for exploring pre-competitive partnerships as it relies on a dogmatic assumption that organisational resources and capabilities are deployed in service of building and maintaining competitive advantage (Barney, 1991;Peteraf, 1993). However, precompetitive partnerships may challenge this relational structure. ...
Seafood accounts for 17% of global animal protein consumption and is the most traded food internationally, creating a complex supply chain with unique sustainability challenges. Previous efforts to stimulate change, such as eco-labeling and retailer pressure, have failed to have system-wide impact. This study explores pre-competitive collaborations, focusing on the SeaBOS initiative, using interviews and triple bottom line analysis. Findings reveal new mimetic pressures around collective power and resource efficiency, plus strengthened normative pressures of scientific support and moral responsibility. While partnerships foster small, frequent business model changes and improve social sustainability performance, their impact on legitimising new practices and environmental outcomes remains unclear.
... With this understanding, organizations may concentrate their resources and efforts on strengthening and employing these key resources and talents (Peteraf, 1993). Second, resource-based theory enables organizations gradually grow their resources and capabilities. ...
... According to the resource immobility hypothesis, firms vary in their ability to acquire and deploy resources as they encounter difficulties in acquiring and trading resources, which ultimately causes differences in performance (Barney, 1991;Schoemaker & Amit, 1993). Meanwhile, the resource-based view of enterprise believes that the essence of an enterprise lies in the collection of heterogeneous resources and that the objectives are to analyze various heterogeneous resources of an enterprise, build sustainable competitive advantages of an enterprise, and obtain corporate performance through exploring and applying its unique resources and abilities (Peteraf, 1993). The value, rarity, and imitable characteristics exhibited by digital marketing, equivalent to a unique resource of an enterprise, are considered as resources that are difficult for the imitation of other competitors, helping enterprises to both maintain sustainable competitive advantages and improve corporate performance in the era of digital economy. ...
In the era of the digital economy in which disruptive information technologies such as artificial intelligence, blockchain, big data, and cloud computing prevail, digital marketing is increasingly becoming the focus of common attention in practice and academia. In this paper, companies listed on the GEM from 2019 to 2023 are selected as research samples to empirically test the impact and intrinsic role of digital marketing on enterprise performance. The results show that digital marketing significantly stimulates enterprise performance, and its incentive effect is mainly reflected in strategic innovation rather than substantive innovation. It is still valid after a series of endogeneity and robustness tests such as instrumental variable method and propensity score matching method. Based on the new perspective of information dynamic capability, this study opens the “black box” of digital marketing enabling enterprise performance and providing certain enlightenment for enterprises to effectively realizing the “win-win” of digital transformation and innovation ability improvement.
... By embedding S-D Logic within coopetition research, this study establishes connections with key strategic theories that further explain how firms leverage and reconfigure resources: the Resource-Based View highlights the importance of both shared and firmspecific resources in sustaining competitive advantage (Peteraf, 1993), the Competency Core Theory underscores the development and integration of unique capabilities for longterm success (Corbo et al., 2023), and the Corporate Core Competencies Theory focuses on how firms strategically recombine competencies to drive innovation and differentiation (Meena et al., 2023). ...
Coopetition, the strategic blend of competition and collaboration, has emerged as a critical strategy for firms navigating today’s interconnected and resource-constrained global economy. While coopetition networks offer substantial benefits, such as fostering innovation, market expansion, and scalability, they are fraught with challenges like resource-sharing risks, trust deficits, and the inherent tension between collaboration and competition. Despite these hurdles, the transformative potential of technology in enabling and enhancing coopetition networks remains underexplored. This study addresses this gap by integrating Service-Dominant Logic (S-D Logic) and institutional work to propose a comprehensive framework for technology-driven coopetition networks. It identifies seven systemic building blocks—coopetition actors, resource integration, service exchange, institutions, nested ecosystems, operand technologies, and operant technologies—that facilitate sustainable value co-creation. These components enable firms to navigate dynamic market conditions by fostering trust, collaboration, and innovation. This research emphasizes technology’s pivotal role as a transformative enabler and strategic driver, enabling real-time interaction, seamless resource integration, and institutional alignment. Institutional work is highlighted as essential for managing regulatory, normative, and cognitive dimensions to ensure the Adaptability and longevity of coopetition ecosystems. By providing actionable insights into the design and management of resilient, technology-driven coopetition networks, this study offers a roadmap for sustainable and equitable value distribution. It contributes to the evolving discourse on strategic business networks, empowering organizations to harness the power of coopetition in an increasingly complex global marketplace.
... Based on the resource-based theory (Wernerfelt, 1984), firms' innovation activities are characterized by long input-output cycles, high risk, and the non-recoverability of initial investments. These activities typically require substantial amounts of capital, human resources, experimental equipment, and other resources to maintain a competitive advantage (Barney, 1991;Peteraf, 1993;Bharadwaj, 2000). In particular, compared with traditional green innovation, BGI emphasizes exploration and breakthroughs in new technological fields. ...
Breakthroughs in green innovation (BGI) have become increasingly prominent in spearheading green technology, while intelligent manufacturing (IM) offers a fresh technical paradigm for the manufacturing industry’ green development. Yet, due to the limitations in measuring BGI, existing research on IM and BGI has been ignored. By devising a ground-breaking approach to BGI, this paper takes the IM pilot demonstration projects as an ideal quasi-natural experiment and investigates the influence of IM on BGI. Our findings indicate that IM can effectively enhance BGI which are further validated by a series of rigorous examinations. Further mechanism analysis reveals that crowding-in R&D resources, strengthening green open innovation, and alleviating agency conflict play potential pathways in bridging the nexus between IM and BGI. A heterogeneity analysis highlights that IM has the potential to disrupt the technological path dependency observed in high-pollution and high-energy consumption industries. Further research suggests that IM can form a joint effect with environmental regulations to promote BGI. BGI driven by IM can also improve both the firm’s economic and environmental, social, and governance (ESG) performance, leading to a “win-win” scenario for economic performance and green development. Our study confirms that promoting IM in emerging countries is indispensable for enhancing BGI, which serves as the new impetus for green development.
... 1 Quasi-rents explain earnings in which different firms earn rents at different rates from the same asset (Klein, Crawford & Alchian, 1978;Peteraf, 1993). For instance, two affiliates may have access to the same set of patents, but one earns more rents than the other from that set of patents. ...
Aliyev, M., Lee, J.Y., 2025. Knowledge-Based Assets in Business Groups: A Dynamic Capabilities View of Complementarity and Rents. Journal of Management, forthcoming.
... La ventaja competitiva de una organización está vinculada con los recursos humanos únicos que tienen a su disposición (Lippman y Rumelt 2003). Por ello dependen del desarrollo de sus capacidades, habilidades y competencias para conseguir atributos difíciles de igualar (Barney 1986, Peteraf 1993. Aunque Barney (1986) indica que desarrollar estos atributos es una tarea difícil, es sumamente necesario para poseer características insuperables, rentables y enfocados en logros. ...
En México, la educación superior ha sido priorizada mediante la Ley General de Educación Superior de 2019, la cual tiene como objetivo garantizar un acceso equitativo a una educación de alta calidad, gratuita y que impulse el desarrollo social, científico, tecnológico e innovador. Este estudio propone un modelo para optimizar el desempeño de las universidades públicas estatales en México, teniendo a la cultura organizacional, la autoevaluación, la gestión del conocimiento y el presupuesto institucional como variables cruciales. La metodología adoptada es de carácter cuantitativo, y se basa en una encuesta realizada a 546 docentes, personal administrativo y directivos de treinta universidades mexicanas, así como la creación de una base de datos de indicadores de desempeño. A partir de estos hallazgos, se desarrolla un modelo adaptado a las necesidades del entorno, con el objetivo de potenciar la innovación, la investigación científica y el impacto social de las universidades.
... Yalın, yeşil, süreç inovasyonu ve JIT arasında önerilen sinerjik ilişki kaynak temelli görüş tarafından desteklenmektedir. Yalın ve yeşil gibi operasyon yönetim sistemleri, kaynak temelli görüş perspektifinden bakıldığında sürdürülebilir rekabet avantajı kaynağı olma ihtiyaçlarını karşılamayabilir (Teece, 1986;Peteraf, 1993). Azevedo vd. ...
İçinde bulunduğumuz çağ, rekabetin sınır tanımadığı ve müşteri beklentilerinin her geçen gün çeşitlendiği bir dönemdir. Böylesi bir dünyada işletmeler, yalnızca verimli çalışmakla yetinemez; aynı zamanda müşteriye hızlı, etkili ve sürekli değer sunabilen dinamik yapılara dönüşmek zorundadır. Bu çerçevede, yalın yönetim felsefesi işletmeler için bir yol haritası sunmaktadır.
Yalın uygulamalar, israfı ortadan kaldırmayı, değer artırımını önceliklendirmeyi ve süreçlerde mükemmelliği hedeflemeyi merkeze almaktadır. Ancak bu yaklaşımlar, sadece üretim süreçleriyle sınırlı değildir. Yalın düşüncenin, pazar odaklılık ve müşteri tatmini gibi pazarlamanın temel unsurlarıyla güçlü bir sinerji oluşturduğu görülmektedir. İşletmelerin hem maliyet avantajı sağlamak hem de müşteri memnuniyeti ve dolayısıyla sadakatini artırmak için yalın stratejilere daha sık başvurduğu günümüzde, yalın yönetim ve pazarlama arasındaki güçlü ilişkinin derinlemesine incelenmesi büyük önem taşımaktadır.
Bu kitap çalışması, yalın yönetimin temel araç ve yaklaşımlarını pazarlama bağlamında ele alarak bir hem akademik camiaya hem de profesyonellere katkı sunmayı hedeflemektedir. Kitapta, israfın ortadan kaldırılmasından Kaizen ve 5S Yaklaşımı’na, Değer Akış Haritalama’dan Altı Sigma’ya kadar pek çok yalın yönetim aracının, müşteri tatmini ve pazar odaklılık gibi unsurlara olan etkisi ele alınmış ve bu doğrultuda önemli bulgular ortaya konmuştur. Dolayısıyla kitap, yalnızca akademik bir katkı sunmakla kalmayıp, iş dünyasına da yol gösterici bir rehber olma niteliği taşımaktadır.
Bu kitabın, yalın uygulamaların pazarlama alanındaki gücünü keşfetmek isteyen yönetici, girişimci, akademisyen ve öğrenciler için önemli bir kaynak olacağı düşünülmektedir. İşletmelerin sürdürülebilir büyüme ve müşteri memnuniyeti hedeflerine katkı sağlaması dileğiyle...
Kitabın hazırlanmasında emeği geçen meslektaşlarıma ve destek olan tüm paydaşlara teşekkür ederim.
Siz değerli okuyucularımızın, bu çalışmayı faydalı ve ilham verici bulmasını dilerim.
... Debido a que muchos de los recursos productivos y capacidades que controla la firma sólo pueden ser desarrollados al interior de ella misma a través de un largo periodo de tiempo (path dependent), éstos no se pueden comprar o vender en los mercados de factores (Penrose 1958). Este supuesto es fundamental en el Análisis de la Firma Basado en sus Recursos, ya que de esta manera se puede explicar cómo se generan las ganancias económicas diferentes a las de la competencia perfecta, generando así una fuente de ventajas competitivas sostenidas para la firma (Peteraf 1993). ...
Este ensayo discute la dinámica industrial desde el enfoque teórico conocido como Análisis de la Firma Basado en sus Recursos (Resuource-Based View of the Firm). El objetivo es contrastar el análisis que deriva de este enfoque con otras explicaciones al uso como son la teoría microeconómica neoclásica y la economía evolucionista. En este sentido, este trabajo analiza el debate teórico en relación a estos tres enfoques cuando buscan explicar el comportamiento de la empresa, su crecimiento y las formas de competencia en los mercados donde ésta participa. Una conclusión importante que deriva de este análisis es que los tres enfoques pueden ser complementarios al momento de explicar la dinámica industrial.
... As Quartey (2012) indicated, organizational performance is greatly influenced by proper and timely training of employees. ET for achieving competitive benefits has been particularly important in the existing literature because empirical evidence has shown that ET impacts organizational performance (Gareth, 2003;Houger, 2006;Niazi, 2011;Peteraf, 1993). According to Mullins (2010), the employees' perceptions of their institution's organizational performance are associated with human resources management (HRM) practices that straightforwardly influence the employees' attitudes inside an institution. ...
Aim/purpose – The primary intent of the study is to examine the effects of employee empowerment (EE) and employee training (ET) on perceived organizational perfor- mance (POP) among the academic and administrative staff of public and private sector higher education institutions of Pakistan with mediation of job satisfaction (JS). Specifi- cally, this study aims to fill the knowledge gap regarding the factors affecting POP in higher education institutions in Pakistan. Design/methodology/approach – 500 Questionnaires were distributed to the academic and administrative staff of 20 higher education institutions (public & private sector) in Faisalabad and Lahore, Pakistan, through a stratified random sampling technique. In this way, 461 out of 500 questionnaires were filled and returned. PLS-SEM was applied to analyze the collected data. Findings – As per the research findings, EE and ET positively affected POP in Paki- stan’s higher education institutions. JS positively mediated the relationship between EE, ET, and POP. Research implications/limitations – This study is of great importance to individuals from varying backgrounds, especially those associated with higher education institu- tions. As a limitation, future studies can also consider longitudinal studies rather than cross-sectional observational studies, different industries rather than higher education institutions, and other relevant variables. Originality/value/contribution – These findings vigorously argue that the determinants of POP, namely EE and ET, further increase JS and the overall performance of higher education institutions. Keywords: employee empowerment, employee training, job satisfaction, perceived organizational performance, higher education institutions. JEL Classification: M10, M12, M19.
... In essence, RBV theory is an approach applied to the business environment. Enterprises can achieve sustainable competitive advantages by implementing strategies that create new and different values compared with competitors [20,[26][27][28]. Resources may include physical, human, and other organizational resources. ...
This study aims to explore and analyze how green marketing affects the business performance of travel enterprises in Vietnam. Combining qualitative and quantitative methods, data were gathered from 380 middle-to-senior-level business managers. Structural Equation Modeling (SEM) using SMARTPLS 4 software was employed to assess the model’s validity and reliability. The analysis demonstrates that green marketing positively impacts business performance, with competitive capabilities and their components serving as mediating variables. Additionally, Multi-Group Analysis (MGA) reveals statistically significant differences in these relationships based on the operational durations of enterprises. The findings highlight the critical role of green marketing in enhancing competitive capabilities, which, in turn, drive improved performance in the travel sector. These insights underscore the importance of sustainable practices in aligning business strategies with environmental objectives. For tourism stakeholders, this study offers actionable guidance for promoting green marketing strategies that contribute to both environmental sustainability and long-term business success. By integrating green marketing principles, travel enterprises can strengthen their competitive positioning while supporting Vietnam’s sustainable tourism development. These results emphasize the need for industry-wide adoption of green practices, fostering a collaborative approach to achieving environmental and economic goals in Vietnam's travel and tourism sector. This study contributes to the growing body of research on sustainable marketing and its implications for emerging markets like Vietnam.
... This framework asserts that firms can develop competencies that are hard to replicate by combining resources to create distinctive advantages, such as specialized marketing or technological skills (Palacios-Marqués, Merigó, and Soto-Acosta 2015; Ritter and Gemünden 2004). RBV is thus instrumental for assessing how a company operates concerning its critical resources and capabilities and how these may foster value and sustainability within the market (Barney 1991;Lopes, Ferreira, and Farinha 2021a;Peteraf 1993). ...
Despite numerous studies on digital tools in tourism and hospitality, few quantitative investigations use an integrated set of these tools to enhance business success. This study examines the impact of digital tools on hospitality business performance, using data from 234 SMEs in Portugal's accommodation sector. Findings show that integrating tourist accommodation into business groups positively influences digital tool adoption. Higher investment in business digitalisation also positively affects tool adoption and overall performance. The most valued digital tools by Portuguese SMEs include updated websites, social networks, online store/reservation systems, and digital marketing. This study provides valuable insights for tourism marketers and business managers to enhance SMEs' competitiveness in the hospitality sector.
En Perú, al igual que en América Latina, hasta un 30% de las nuevas empresas son sostenibles. Los estudios sobre el desempeño se han centrado en factores internos como recursos, capacidades u orientaciones. Sin embargo, las empresas rurales han sido poco estudiadas en términos de factores impulsados por el desempeño. Este estudio tiene como objetivo determinar los recursos que inciden en el desempeño de las PYMES rurales peruanas, con la mediación de la capacidad de marketing. En particular, se incluyen en el modelo conceptual la orientación emprendedora, los recursos de marketing y los recursos de Tecnologías de la Información y Comunicación (TIC). Se presenta un enfoque cuantitativo, que incluye el análisis de datos mediante modelos de ecuaciones estructurales. Los resultados muestran el efecto predictivo de la orientación emprendedora y los recursos de TIC sobre el desempeño, mientras que los recursos de marketing mostraron un efecto negativo. Además, el efecto mediador de la capacidad de marketing sobre el desempeño no fue significativo con respecto a las tres variables independientes.
Purpose
A significant body of research has investigated open innovation and absorptive capacity as well as the relationship between them. Moreover, recent research has classified each concept into subcategories on the basis of theoretical reasoning. However, the relationships among these subcategories in terms of theoretical and empirical aspects are unknown. Thus, this study makes several hypotheses related to the generally accepted subcategories, i.e. academic and business collaboration and potential and realized absorptive capacity. We empirically tested data from a questionnaire survey and public data from Japanese industrial firms.
Design/methodology/approach
This study empirically analyzes the relationship between open innovation and absorptive capacity via a quantitative approach and a questionnaire survey.
Findings
The results show that the types of collaboration partners might affect certain subcategories of absorptive capacity related to firm performance. Specifically, academic collaboration enhances potential absorptive capacity but diminishes realized absorptive capacity. Business collaboration has a positive effect on firm performance but limited effects on both potential and realized absorptive capacity.
Originality/value
This study considers the advancements of previous studies to study the relationship between open innovation and absorptive capacity. This study elucidates the efficacy and limitations of these concepts and advances our knowledge of innovation research areas.
This study investigates how entrepreneurial marketing dimensions affect the performance of small and medium-sized enterprises (SMEs) in Tanzania's agroprocessing industry. By integrating insights from the Resource-Based Theory ) and Entrepreneurial Marketing Theory , the analysis focuses on three critical dimensions: customer intensity, value creation, and proactiveness. Data were collected from 255 SMEs in Dar es Salaam, Tanzania, and analyzed using Structural Equation Modeling (Partial Least Squares SEM) with the SEMinR package. The results demonstrate that both customer intensity and proactiveness significantly enhance SME performance, suggesting that prioritizing customerfocused activities and adopting a proactive approach can lead to improved outcomes. Interestingly, the study finds that value creation does not directly correlate with SME performance, indicating a need for a more nuanced approach in the agro-processing sector. These findings offer practical implications for agro-processing SMEs seeking sustained growth and competitiveness while advancing the theoretical understanding of both ResourceBased Theory and Entrepreneurial Marketing Theory.
Now in its third edition, this Handbook is essential for students and researchers in Strategic Management and Organizational Theory and Behaviour. The Strategy as Practice approach moves away from the disembodied and asocial study of firm assets, technologies and practices, towards the study of strategizing as an activity. Strategy is understood as something people do rather than something a firm has. This perspective explores how strategizing contributes to an organizations' daily operations at all levels. Through detailed empirical studies of the everyday activities and practice of people engaged in strategizing, the Handbook investigates who strategists are, what strategists do, how they do it, and what the consequences of their actions are. Featuring new authors and additional or fundamentally updated and revised chapters, this edition provides a state-of-the-art overview of recent reflections and works in this rapidly growing stream of strategic management, whilst also presenting a research agenda for the next decade.
Drawing on the analytical approaches of global production networks, global value chains, and spatial divisions of labor, this book investigates the changing automotive industry in Europe. Petr Pavlínek is a leading scholar of the automotive industry and here he focuses on its restructuring and geographic reorganization since the early 1990s to analyze the driving forces and regional development effects of these changes. Pavlínek explains the spatial profit-seeking strategies of large automotive firms and their role in the restructuring and increasing internationalization of Europe's automotive industry through foreign direct investment. He also considers how rapid growth in eastern Europe has affected western Europe, evaluates the relative position of countries in the European automotive industry, and examines the transition to the production of electric vehicles in eastern Europe. Europe's Auto Industry features original data along with concepts and methods that may be applied in economic geography, economics, industrial sociology and development studies. This book is also available as Open Access on Cambridge Core.
Dans un contexte de crises économiques fréquentes et perturbatrices, les décisions financières des entrepreneurs-dirigeants jouent un rôle crucial dans la survie et la résilience des entreprises. Cet article propose un modèle intégratif pour analyser les déterminants psychologiques influençant ces décisions en période de crise. Basé sur une revue approfondie de la littérature, ce modèle explore comment la perception de la crise influence le capital psychologique et social des entrepreneurs, impactant ainsi leurs comportements financiers. Le cadre théorique repose sur quatre axes principaux : la perception de la crise, le capital psychologique et social, les approches de gestion de crise et la classification des comportements financiers des entrepreneurs-dirigeants. En s'appuyant sur des modèles reconnus (Suder, 2023 ; Wang et al., 2022 ; Lux et al., 2020 ; Sahin et al., 2015 ; Ajzen, 1991), cet article propose une approche originale visant à approfondir la compréhension des mécanismes psychologiques sous-jacents aux décisions financières en période de crise. Ce modèle, enrichi par des hypothèses vérifiables, apporte une contribution significative à la littérature existante en intégrant des perspectives psychologiques et sociales dans l’étude des comportements financiers en situation de crise. Enfin, des implications pratiques sont proposées pour guider les chercheurs et les praticiens, accompagnées de pistes pour de futures recherches dans ce domaine. In the context of frequent and disruptive economic crises, the financial decisions of entrepreneur-managers play a crucial role in the survival and resilience of companies. This paper proposes an integrative model to analyze the psychological determinants influencing these decisions in times of crisis. Based on a thorough review of the literature, this model explores how the perception of crisis influences entrepreneurs' psychological and social capital, thus impacting their financial behaviors. The theoretical framework is based on four main axes: the perception of the crisis, psychological and social capital, crisis management approaches, and classification of financial behaviors of entrepreneur-managers. Based on recognized models (Suder, 2023; Wang et al., 2022; Lux et al., 2020; Sahin et al., 2015; Ajzen, 1991), this article proposes an original approach to deepen the understanding of sub-psychological mechanisms under financial decisions in times of crisis. This model, enriched by verifiable assumptions, significantly contributes to the existing literature by integrating psychological and social perspectives into studying financial behaviors in crises. Finally, practical implications are proposed to guide researchers and practitioners, along with leads for future research in this field.
In the rapidly expanding realm of the digital economy, the pivotal role of digital transformation in propelling businesses towards sustainable and progressive development is becoming increasingly evident. Examining how digital transformation motivates firms to innovate in green management practices sustainably is essential. Utilizing a dataset encompassing Chinese A-share listed companies from 2008 to 2020, this study empirically examines digital transformation's effects on the ongoing quest for green innovation. Additionally, it delves into the mediating role that green management innovation plays in this dynamic and evaluates how the fit of the innovation ecosystem within a company's regional environment serves as a moderating factor. The findings indicate that digital transformation strengthens firms' capacities for persistent green innovation. Green management innovation is revealed to be an intermediary in this process; meanwhile, aligning the innovation ecosystem's niche within a company's region amplifies the influence of digital transformation on fostering sustainable green innovation. This research offers valuable theoretical perspectives for organizations that leverage digital transformation as a strategic asset for ecologically friendly manufacturing and long-term expansion. This research examines how digital transformation drives sustainable green innovation in businesses, a significant but less-studied area. We aim to uncover the mechanisms influencing innovation, emphasizing the impact of green management and the fit of the innovation environment. We strive to provide empirical insights that enhance theoretical knowledge at the junction of digital strategy and environmental responsibility, guiding corporate practices toward operational efficiency and ecological sustainability. The study intends to foster a corporate ethos by integrating digital initiatives with green innovation and advancing global sustainable development.
In the backdrop of Industry 4.0, organizations grapple with the intricate web of antecedents influencing agility, requiring a comprehensive understanding to navigate this transformative era successfully. Organizational agility stands as a linchpin, facilitating swift adaptation to dynamic environments, fostering innovation, and maintaining a competitive edge in the ever-evolving business landscape. This systematic review addresses the need for consolidating and synthesizing the fragmented literature on organizational agility, particularly within the context of Industry 4.0, to provide a clear and comprehensive understanding of the key factors at play. The study reviews literature spanning from 2014 to 2023, analyzing 64 studies, providing a systematic exploration of organizational agility within the Industry 4.0 framework. A central finding is the identification and clarification of antecedents influencing organizational agility in Industry 4.0 adoption. The study's significance underscored by its contribution to providing clarity in the understanding of organizational agility. It serves as a guiding beacon for researchers, offering insights through diverse methodologies. Furthermore, the study furnishes practical implications for organizations navigating the intricate landscape of Industry 4.0. The derived framework not only stands as a valuable tool but also as a cornerstone for guiding future research endeavors and strategic decision-making in the dynamic realm of Industry 4.0. Beyond this, the study points to unexplored facets, such as emerging technologies, the evolving role of leadership, and ethical considerations. This comprehensive approach positions the review as a catalyst for both academic discourse and practical implementation in the Industry 4.0 era, amplifying its impact on the broader scholarly and industrial community.
Actualmente el conocimiento es considerado como la base para generar estrategias alternativas que permitan enfrentar y salir avante de la incertidumbre del mercado. Con este punto de partida, el presente artículo constituye el primer avance del trabajo de investigación acerca de la gestión del conocimiento como generadora de ventajas competitivas en las microem-presas familiares formales de servicios ubicadas en Uruapan, Michoacán. Para ello, se realizó una revisión teórica que permitió desarrollar los contenidos respecto al conocimiento, las microempresas familiares de servicios en México, las ventajas competitivas y la situación de las microempresas familiares formales de servicios ubicadas en Uruapan, Michoacán, cada uno relacionado con la gestión del conocimiento.
This study explores the design of digital strategies in museum education, utilizing the National Palace Museum in Taiwan as a case study and applying the resource-based view and value co-creation theories. It highlights the strategic use of unique resources and capabilities to gain a competitive edge, focusing on crafting unique, digital-enhanced learning experiences. Emphasizing the importance of visitor engagement in creating value, the research advocates for the development of interactive and personalized educational content. This methodology seeks to improve learning outcomes and deepen cultural comprehension, offering an advanced framework for developing digital strategies within museums. The study underscores the need for integrating technological advancements with immersive learning experiences to foster an engaging and informative environment.
This study examines the impact of public procurement practices on service delivery at the Nigeria National Petroleum Company (NNPC). Despite the Public Procurement Act of 2007, NNPC faces issues such as corruption, inefficiency, and non-compliance with procurement regulations, affecting service delivery. To evaluate this, a quantitative research approach was used, with data collected from 132 NNPC employees through structured surveys. The study tested the hypothesis that transparency in procurement practices positively affects service delivery outcomes. Key findings reveal significant positive relationships between transparency, efficiency, adherence to regulations, and service delivery at NNPC. Transparency and adherence to regulations enhance service delivery, while efficient procurement processes boost organizational effectiveness. The study underscores the importance of effective procurement practices for efficient and accountable service delivery and recommends NNPC prioritize compliance with due process in procurement. This research contributes empirical evidence on the impact of procurement practices on service delivery in a specific organizational context.
This study explores the dynamic relationship between internationalization and innovation, and their joint impact on the organizational performance of small and medium-sized enterprises (SMEs) in Wuhan, Hubei Province, China. Based on data from 404 SMEs, the research analyzes the structural links between internationalization (INT), innovation (INN), and organizational performance (OP), offering valuable insights into how these factors contribute to the success of SMEs in a globalized business environment. The theoretical framework integrates the Revised Uppsala Internationalization Process Model, the Innovation-Related Internationalization Model, and the Resource-Based View (RBV) Theory. Findings reveal that innovation plays a vital mediating role in the relationship between internationalization and organizational performance, highlighting that SMEs can improve performance not just through entering global markets, but by embedding innovation within their operations. The study shows that firms that combine internationalization strategies with innovative practices achieve superior outcomes in terms of financial growth, operational efficiency, and market competitiveness. This research provides practical recommendations for entrepreneurs, policymakers, and academics. Entrepreneurs are encouraged to synchronize internationalization with innovation to build competitive advantages, while policymakers are urged to support initiatives that foster both innovation and international expansion among SMEs. Academically, the study fills a gap in the literature by examining the empirical relationship between these variables in the Chinese SME context. Future research opportunities are proposed, including expanding the study to different industries and regions, integrating qualitative approaches, and considering external factors influencing internationalization and innovation. This work contributes to theory and practice by offering a robust framework for understanding how SMEs can strategically leverage internationalization and innovation to enhance performance in an increasingly interconnected global market.
Suppose a new high growth segment opens up in your industry. Should you enter that segment? lviany other firms are likely to enter as well. Will the returns justify the costs? If too many firms enter, and commit high levels of funding, your return on investment will be mediocre at best. This would be a disappointing experience, but it is one many companies have had in races for market share and technological advantage. Of course, this does not mean that you should not chase such opportunities. If you fail to do so, you might do even worse. It does, however, inrply the following: on an even playing field, against well managed compe titors, you cannot expect superior performance. You need to look for tilted playing fields, areas where you have a competitive advantage. Where do you have an advantage? You have the advantage in markets where your resources are superior to those of the competition. In such a game you can achieve a strong market position at a lower cost than your competitors. The first step is to identify your resources. The second step involves deciding where to compete, Only then do you worry about how to compete. This shifts the focus of strategic analysis from the industry to the company itself Il]. Stratesv formulation consists in the identification, deployment and development of resources. What principles govern this process in well--managed companies? Critical Resources A list of your company's resources u,ould quickly get very long: this plant. that patent, such-and-such a brand name. a good manager here, a good R & D team there. etc. Onlv verv feu'resources are critical in the sense that JJ Il] Stt this argunrcnt lunrs irttcntitln awrr-1, {'11v6l thc industrl'lilcLrs suggcstcd l'rv Prtrtcr. thev can differentiate vou from competition. The rcsource has to be unique. If competitors can buv or develop identical resources. they will do so until the field is overcrowded. But what unique resources can a company own? Not very many, apart from patents, brand namcs. mining rights and pieces of land. But there is hope. You can profit from a resource even if you do not own it! This may happen bv trading rvith ou'ners of a unique resource if these owners have a difficult time switchinq to alternative trading partners. To see how this works, it is helpful to look at an example. Let us sav that one of your managers, Smith, is particularly good. Normally, you have to pay him a salary fully reflecting this, since competitors otherwise will hire him arva,'-. This process could conceivably continue until Smith's salary is commensurate with his skills, leaving no extra profits for the employer [2]. There arc, horuvever, two exceptions to this: Team Effects. Suppose that Smith is good in part because he works well with Jones. Now if these two can agree to market themselves as a package, they may well be able to reahze their joint value. However, if they cannot, vour company can pay them their individual values and reap their (larger) joint value. Specific Assets. Alternatively, it may be the case that Smith is more valuable to you than to other companies. Also in this case you will be able to pay him less than what he delivers.
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.
In this paper we theoretically and empirically investigate the idea that firms diversify in part to utilize productive resources which are surplus to current operations. Knowledge of these resources allows us to make predictions about the direction of a firm's expansion. In particular, we suggest that excess physical resources, most knowledge-based resources, and external financial resources are associated with more related diversification, while internal financial resources are associated with more unrelated diversification.
The resource-based approach is an emerging framework that has stimulated discussion between scholars from three research perspectives. First, the resource-based theory incorporates traditional strategy insights concerning a firm's distinctive competencies and heterogeneous capabilities. The resource-based approach also provides value-added theoretical propositions that are testable within the diversification strategy literature. Second, the resource-based view fits comfortably within the organizational economics paradigm. Third, the resource-based view is complementary to industrial organization research. The resource-based view provides a framework for increasing dialogue between scholars from these important research areas within the conversation of strategic management. Resource-based studies that give simultaneous attention to each of these research programs are suggested.
Business Portfolio Planning techniques often suggest that firms should invest in industries with high profitability, high growth, or other attractive characteristics. Critiquing this view, we suggest that the same factors which lead to high profitability in an industry may cause its inefficient participants to earn lower profits. Higher growth, on the other hand, may benefit inefficient firms while reducing the gains of efficient competitors. The paper offers theory and evidence to support this view of performance dependencies for the special case of diversified firms.
Profits in the Long Run asks two questions: Are there persistent differences in profitability across firms? If so, what accounts for them? This book answers these questions using data for the 1000 largest US manufacturing firms in 1950 and 1972. It finds that there are persistent differences in profitability and market power across large US companies. Companies with persistently high profits are found to have high market shares and sell differentiated products. Mergers do not result in synergistic increases in profitability, but they do have an averaging effect. Companies with above normal profits have their profits lowered by mergers. Companies with initially below normal profits have them raised. In addition, the influence of other variables on long-run profitability, including risk, sales, diversification, growth and managerial control, is explored. The implications of antitrust policy are likewise addressed.
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable over time, this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage-value, rareness, imitability, and substitutability are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.
The same rule which regulates the relative value of commodities in one country does not regulate the relative value of the commodities exchanged between two or more countries.
Under a system of perfectly free commerce, each country naturally devotes its capital and labor to such employments as are most beneficial to each. This pursuit of individual advantage is admirably connected with the universal good of the whole. By stimulating industry, by rewarding ingenuity, and by using most efficaciously the peculiar powers bestowed by nature, it distributes labor most effectively and most economically: while, by increasing the general mass of productions, it diffuses general benefit, and binds together, by one common tie of interest and intercourse, the universal society of nations throughout the civilised world. It is this principle which determines that wine shall be made in France and Portugal, that corn sell be grown in America and Poland, and that hardware and other goods shall be manufactured in England…
This book discusses the development of a theory on the growth of the firm. It is shown that the resources with which a particular firm is accustomed to working will shape the productive services its management is capable of rendering. The experience of management will affect the productive services that all its other resources are capable of rendering. As management tries to make the best use of the resources available, a ‘dynamic’ interacting process occurs which encourages growth but limits the rate of growth.
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.
A resource-based approach to strategic management focuses on costly-to-copy attributes of the firm as sources of economic rents and, therefore, as the fundamental drivers of performance and competitive advantage. Interest presently exists in whether explicit acknowledgement of the resource-based view may form the kernel of a unifying paradigm for strategy research. This article addresses the degree to which a resource-based view represents a fundamentally different approach from theories used in industrial organization (10) economics. The central thesis is that, put informal terms, the resource-based approach is reaching for a theory of the firm. To determine its distinctiveness in comparison to IO, therefore, an appropriate comparison is with other theories of the firm developed within that tradition. Section I summarizes and analyzes five theories that have been significant in the historical evolution of IO. These are neoclassical theory's perfect competition model, Bain-type IO, the Schumpeterian and Chicago responses, and transaction cost theory. The first part of Section II analyzes the resource-based approach in terms of similarities to and differencesfrom these IO-related theories. The conclusion is that resource-based theory both incorporates and rejects at least one major element from each of them; thus resource-based theory reflects a strong IO heritage, but at the same time incorporates fundamental differences from any one of these theories. The second part of Section II analyzes resource-based theory as a new theory of the firm.
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
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Introduction, 351. — I. The conditions of market efficiency, 353. — II. Neoclassical external economies: a digression, 356.
— III. Statical externalities: an ordering, 363. — IV. Comments, 371. — V. Efficiency, markets and choice of institutions,
377.
In this paper it is argued that failures of the competitive market are necessary conditions for supranormal profitability. Three fundamental causes of these market failures—production economies and sunk costs, transactions costs, and imperfect information—are developed from the theory of competitive markets and discussed in terms of their impact on profitability. The identification of these ‘impediments to economic activity’ is useful for determining successful strategies to exploit market failures.
This article surveys the theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms. Major conceptual issues are addressed, and recommendations are given for future research. Managerial implications are also discussed.
The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested. These tools are then used to highlight the new strategic options which naturally emerge from the resource perspective.
This study partitions the total variance in rate of return among FTC Line of Business reporting units into industry factors (whatever their nature), time factors, factors associated with the corporate parent, and business-specific factors. Whereas Schmalensee (1985) reported that industry factors were the strongest, corporate and market share effects being extremely weak, this study distinguishes between stable and fluctuating effects and reaches markedly different conclusions. The data reveal negligible corporate effects, small stable industry effects, and very large stable business-unit effects. These results imply that the most important sources of economic rents are business-specific; industry membership is a much less important source and corporate parentage is quite unimportant.
In virtually all economic analyses, differences among firms in the same line of business are repressed, or assumed to reflect differences in the market environments that they face. In contrast, for students of business management and strategy, firm differences are at the heart of their inquiry. This paper explores the reasons behind this stark difference in viewpoint. It argues that economists really ought to recognize firm differences explicitly.
We decompose the inter-firm variance in profit rates into economic and organizational components. Using a representative model from each paradigm we find that both sets of factors are significant determinants of firm performance. Further findings are that the two effects are roughly independent and that organizational factors explain about twice as much variance in profit rates as economic factors.
The article reflects on the diffusion of the ‘resource-based view of the firm’ into academic and practitioner thought. The contributions of many people are noted. In closing, I offer some speculations about the future use of these ideas.
In their paper, Dierickx and Cool suggest that the strategic factor markets model developed in Barney (Barney, J. B. 1986a. Strategic factor markets: Expectations, luck, and business strategy. Management Sci. (October) 1231--1241.) cannot be applied in the analysis of sustained competitive advantages due to asset stocks accumulated over time. In this comment, it is shown that the discussion of asset stocks extends and complements, rather than limits, the strategic factor markets model. This is done by analyzing how the strategic factor markets model can be used to examine the cost of accumulating asset stocks over long periods of time, and how these costs will compare to the value of strategies that are implemented exploiting these asset stocks.
Given incomplete factor markets, appropriate time paths of flow variables must be chosen to build required stocks of assets. That is, critical resources are accumulated rather than acquired in "strategic factor markets" (Barney [Barney, J. 1986. Strategic factor markets: Expectations, luck, and business strategy. Management Sci. (October) 1231--1241.]). Sustainability of a firm's asset position hinges on how easily assets can be substituted or imitated. Imitability is linked to the characteristics of the asset accumulation process: time compression diseconomies, asset mass efficiencies, inter-connectedness, asset erosion and causal ambiguity.
Much of the current thinking about competitive strategy focuses on ways that firms can create imperfectly competitive product markets in order to obtain greater than normal economic performance. However, the economic performance of firms does not depend simply on whether or not its strategies create such markets, but also on the cost of implementing those strategies. Clearly, if the cost of strategy implementation is greater than returns obtained from creating an imperfectly competitive product market, then firms will not obtain above normal economic performance from their strategizing efforts. To help analyze the cost of implementing strategies, we introduce the concept of a strategic factor market, i.e., a market where the resources necessary to implement a strategy are acquired. If strategic factor markets are perfect, then the cost of acquiring strategic resources will approximately equal the economic value of those resources once they are used to implement product market strategies. Even if such strategies create imperfectly competitive product markets, they will not generate above normal economic performance for a firm, for their full value would have been anticipated when the resources necessary for implementation were acquired. However, strategic factor markets will be imperfectly competitive when different firms have different expectations about the future value of a strategic resource. In these settings, firms may obtain above normal economic performance from acquiring strategic resources and implementing strategies. We show that other apparent strategic factor market imperfections, including when a firm already controls all the resources needed to implement a strategy, when a firm controls unique resources, when only a small number of firms attempt to implement a strategy, and when some firms have access to lower cost capital than others, and so on, are all special cases of differences in expectations held by firms about the future value of a strategic resource. Firms can attempt to develop better expectations about the future value of strategic resources by analyzing their competitive environments or by analyzing skills and capabilities they already control. Environmental analysis cannot be expected to improve the expectations of some firms better than others, and thus cannot be a source of more accurate expectations about the future value of a strategic resource. However, analyzing a firm's skills and capabilities can be a source of more accurate expectations. Thus, from the point of view of firms seeking greater than normal economic performance, our analysis suggests that strategic choices should flow mainly from the analysis of its unique skills and capabilities, rather than from the analysis of its competitive environment.
Profits in the Long Run asks two questions: Are there persistent differences in profitability across firms? If so, what accounts for them? This book answers these questions using data for the 1000 largest US manufacturing firms in 1950 and 1972. It finds that there are persistent differences in profitability and market power across large US companies. Companies with persistently high profits are found to have high market shares and sell differentiated products. Mergers do not result in synergistic increases in profitability, but they do have an averaging effect. Companies with above normal profits have their profits lowered by mergers. Companies with initially below normal profits have them raised. In addition, the influence of other variables on long-run profitability, including risk, sales, diversification, growth and managerial control, is explored. The implications of antitrust policy are likewise addressed.
This paper examines the argument that growth and diversification in large established firms result from a process of matching a firm's lumpy and ever-changing resources with dynamic market opportunities. The analysis shows that rapidly growing firms with broad resource bases are the most likely to pursue diversified expansion. In doing so, these firms tend to enter markets where the (often high) resource requirements are similar to their own resource capabilities. These results are consistent with some of Penrose's observations on the growth of fims, but challenge some precepts of traditional entry barrier theory.
This paper examines elements of an efficiency-based theory of the multiproduct firm. The theoretical framework developed by Williamson to explain vertical integration is extended to explain diversification. The proposition is advanced that a cost function displaying economies of scope has no direct implications for the scope of the business enterprise. However, if economies of scope are based upon the common and recurrent use of proprietary knowhow or the common and recurrent use of a specialized and indivisible physical asset, then multiproduct enterprise (diversification) is an efficient way of organizing economic activity. These propositions are first developed in a general context and then examined in the context of diversification in the U.S. Petroleum industry.
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