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Firm Resources and Sustained Competitive Advantage
Abstract
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable over time, this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage-value, rareness, imitability, and substitutability are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.
... Wernerfelt's seminal work in 1984 laid the foundation for resource-based theory, which posits that enterprises possess diverse resources that can lead to unique capabilities, offering sustained competitive advantage (Wernerfelt, 1984). According to the VRIN framework, resources must be Valuable, Rare, Imperfectly Imitable, and Non-Substitutable to confer competitive advantage (Barney, 1991). Resource allocation decisions shape an enterprise's flexibility and specificity, impacting its future decisions and competitive advantage (Peteraf, 1993). ...
... Enterprises optimize resource utilization to enhance efficiency and resource value (Peteraf, 1993). While competitive advantage attracts imitation, factors like causal ambiguity, path dependency, and imitation costs hinder replication (Barney, 1991). Uncertainty and complexity deter enterprises from imitating advantageous resources (Barney, 1991). ...
... While competitive advantage attracts imitation, factors like causal ambiguity, path dependency, and imitation costs hinder replication (Barney, 1991). Uncertainty and complexity deter enterprises from imitating advantageous resources (Barney, 1991). Enterprises cultivate unique resources through organizational learning, knowledge management, and external networks (Barney, 1991). ...
This study investigates the impact of corporate social responsibility (CSR) on innovation capability and organizational performance in China's rural commercial banks. Utilizing a robust evaluation index system, the research quantitatively assesses CSR and its dimensions: economic, legal, moral, and charitable responsibilities. Findings indicate that CSR positively influences organizational performance and innovation capability. Moreover, innovation capability significantly enhances organizational performance and partially mediates the relationship between CSR and organizational performance. The research also highlights the moderating role of an organizational innovation atmosphere, where colleague support, supervisor support, and organizational support strengthen the relationship between innovation capability and organizational performance. These insights underscore the critical role of CSR in driving innovation and organizational success in the rural banking sector. Further research is recommended to explore additional mediating mechanisms and broaden the sample scope for more comprehensive results.
... By the signalling theory of Michael Spence (1973), MFIs participating in strategic alliances signal their commitment to adopting best practices that improves sustainability. By the Resource Based Theory of Barney (1991), Firms can access resources and expertise from their partner organizations, such as technical know-how, distribution networks, or additional funding sources. These resources can enhance firm's operations, expand their reach, and contribute to sustainability. ...
... Theoretically, the study draws upon relevant theories to show the relationship between complementary alliances and sustainability of MFIs. The Resource-Based View (RBV) suggests that organizations can gain a competitive advantage by leveraging their unique resources and capabilities (Barney, 1991 These hypotheses shall therefore bridge the gap between complementary alliances and sustainability of MFIs in Cameroon. ...
... To motivate the specification of a model that examines the effects of Complementary Alliances on sustainability MFIs, the study draws upon relevant theories and empirical findings. The Resource-Based View (RBV) suggests that organizations can gain a competitive advantage by leveraging their unique resources and capabilities (Barney, 1991). In the context of Complementary Alliances, MFIs can access resources and expertise from their partner organizations, such as technical know-how, distribution networks, or additional funding sources. ...
Purpose: The Cameroon Microfinance sector has been facing stiff competition as a result of globalization where other players have joined the sector with differentiated innovative products/services rendering MFIs in quest of new strategies of development. Partnerships are becoming an alternative business strategy and hence the formation of strategic alliances in the microfinance industry. This study sought to determine the influence of complementary alliances on the sustainability of MFIs in Cameroon. The objectives were to examine how complementary alliances in financial institutions and complementary alliances in non-financial institutions affect sustainability of MFIs in Cameroon. Materials and Methods: The study used a survey research design to examine the effects of the independent variables on the dependent variable. Purposive and snowball sampling techniques were used in this study. The target population of the study comprised of the 361 MFIs in the Centre, Littoral, NW, SW and West regions of Cameroon that have carried out strategic alliances which were retained and used to develop the sample size. Data was collected through the use of opened and closed ended questionnaires administered to senior management of the MFIs. Data collected was analysed using the Structural Equation Modelling with Ordinary Least Square (OLS) regression estimation techniques to check the robustness of the data set. Findings: OLS Findings suggest that complementary alliances in financial institutions, more than complementary alliances in non-financial institutions has a positive and significant relationship with sustainability of MFIs in Cameroon given their β coefficients of 0.243** and 0.036 respectively. The regression coefficient for complementary alliances in financial institution is significant at 5%. Implications to Theory, Practice and Policy: It is recommended that MFIs should partner with other financial and non-financial institutions in terms of commercialisation of services. This will strengthen their business relationships, enable them have access to resources and expertise from partner organisations to expand their operations, generate revenue that will keep them going and boost the financial growth of the economy.
... Resource based theory (RBT) provides a framework to highlight and predict the fundamentals of organisation performance and competitive advantage (Helfat, 2007). This theory aims to (Barney, 1991). The resource-based logic suggests that if few firms are able to control resources potentially to generate a sustained competitive advantage, it implies that the firms possess valuable resources (Barney, 1991). ...
... This theory aims to (Barney, 1991). The resource-based logic suggests that if few firms are able to control resources potentially to generate a sustained competitive advantage, it implies that the firms possess valuable resources (Barney, 1991). Valuable resources are resources that are costly and difficult to imitate. ...
... In RBT, resources refer to assets, business processes, capabilities, the firm's attributes, knowledge, information controlled by a company to comprehend and implement (Barney, 1991). The source of firm resources can vary, coming from both within and outside the organisation. ...
Aim: The current customer is more informed and educated, more selective and has a higher capacity of choice hence demands a more significant value generation from firms. The co-creation remains a vehicle for competitiveness and business growth but without co-creation, business tends to stagnate and eventually fail. This study aims to examine the effect of co-creation on competitive advantage in the processing and service firms of the Littoral Region in Cameroon. Methods: The research adapts a correlational research design with a sample size of 500 companies from the processing and service sectors. The research applied a deductive approach. Data collection was through the use of a questionnaire and data analysis using the pairwise correlation analyses. Results: The results revealed a strong correlation structure between the items as the KMO measure of sampling adequacy was supportive and significant as well as Bartlett’s test of sphericity. Conclusion: The study reaffirms the positive significant effect of co-creation on the competitive advantage of processing and service firms in the Littoral Region of Cameroon. Recommendation: Management needs to adapt co-creation with customers to improve their products and services and to engage further with customers for innovation, customization and collaboration.
... The involvement of long-term investors not only resolves the problem of agency but also helps steer an enterprise's long-term and short-term development [18]. According to the RBV, evaluating an enterprise's intrinsic worth and the uniqueness and scarcity of its resources is essential for resource management [19]. Primarily, the value of an enterprise lies in its capacity to benefit from its resources. ...
... It is crucial to maintain transparency and openness in sharing resource information to facilitate internal communication and coordination [21]. The RBV emphasizes the importance of integrating diverse resources to adapt to market fluctuations and maintain long-term competitiveness [19,20]. Protecting and maintaining resources is necessary to preserve an enterprise's long-term strategic direction [19]. ...
... The RBV emphasizes the importance of integrating diverse resources to adapt to market fluctuations and maintain long-term competitiveness [19,20]. Protecting and maintaining resources is necessary to preserve an enterprise's long-term strategic direction [19]. ...
Supply chain finance has the capacity to enhance the efficiency of financing and the ability to manage risk for all stakeholders involved in the supply chain, leading to the promotion of sustainable development, and fostering collaborative partnerships within the chain. The theoretical foundation for the evolution of supply chain finance and the optimal utilization of internal and external resources can be attributed to the resource-based view. Building upon this view, we propose establishing a framework for the relationship between supply chain finance, intangible assets, and long-term investors. However, it is crucial to note that, under the predominant shareholding structure of long-term investors, the value and safeguarding of intangible assets may not be effectively enhanced. This can have ramifications on the investment decisions and interest protection of long-term investors as well as hinder the competitiveness of enterprises and the efficacy of supply chain finance. Leveraging it allows for the extraction of value from intangible assets and attracts the support of long-term investors, thereby aiding enterprises in risk reduction, fostering innovation and technological advancement, and ultimately achieving sustained development. Our proposed model serves as a valuable reference for relevant enterprises and individuals seeking to utilize supply chain finance, particularly for entrepreneurs and innovative companies.
... In the contemporary global business scenario, the demand for software among companies to fulfill their objectives is increasing rapidly. This growing need for software has led to a significant increase in the number of software development companies, thus intensifying the competition for highly qualified IT members, as reported by Gartner Inc. 1 However, this scenario is challenging due to the scarcity of individuals with specific technical skills, which represents a significant obstacle for organizations seeking to build highly proficient software development teams . ...
... Fierce competition in the job market and a shortage of talent with specific technical skills lead to a high turnover rate in these companies. Moreover, it is important to point out that talent retention can become a significant competitive advantage for IT organizations, according to Resource-Based View (RBV) theory [1]. ...
... Talent retention is influenced by a combination of several factors, which vary according to the individual preferences and needs of IT professionals. Our results are aligned with RBV theory [1] and revealed that, despite a competitive salary, other relevant factors for retaining talent in IT organizations can be considered a competitive advantage, such as psychological safety, work-life balance, positive work environment, professional growth opportunities, innovative and challenging projects, and flexible work. ...
... Hence, managerial oversight in every facet of a company is an essential component of managerial governance. Aligned with the resource-based view (RBV), which asserts that sustained competitive advantage relies on possessing valuable, rare, inimitable and nonsubstitutable resources (Barney, 1991), higher managerial ability is conceptualized as a resource with these distinctive attributes. ...
... Within the realm of extant literature, managerial ability emerges as a critical factor influencing various aspects of corporate functioning. It exerts significant influence over resource allocation (Barney, 1991), overall firm performance (Carmeli and Tishler, 2004;Holcomb et al., 2009), investment decisions (Chemmanur et al., 2009), entry into new markets (Goldfarb and Xiao, 2011), the quality of company earnings (Demerjian et al., 2012b) and even the creation of liquidity in the banking sector (Andreou et al., 2016). The impact of managerial ability extends further to affect abnormal returns (Hayes and Schaefer, 1999), earnings quality (Demerjian et al., 2012b), acquisition quality (Goodman et al., 2013), goodwill impairment (Sun, 2016) and tax avoidance (Koester et al., 2017). ...
... The upper echelons theory (Hambrick and Mason, 1984) posits that top executives' experiences, values and cognitive characteristics influence organizational outcomes, emphasizing the role of reputation in shaping managerial decisions over the short to long term. The RBV (Barney, 1991) underscores the active pursuit of valuable, rare, inimitable and non-substitutable resources for reputational gain over the long term. The behavioural theory (Cyert and March, 1963;Greve, 2003) suggests that managers, motivated by the desire to enhance and protect their reputation, strategically engage in problemistic search to address operational challenges or deficiencies, especially in resource-abundant environments where slack search for innovative ideas becomes prominent. ...
Purpose
The interplay between individual and collective creativity and its translation into innovation is a critical yet complex challenge in the ever-evolving innovation landscape. This study delves into the intricate relationship between managerial ability, intellectual property rights (IPRs) and research and development (R&D) investments contextualized within the dynamics of leverage, firm life stages and tangibility for pharmaceutical firms in the Asia-Pacific region. By exploring how micro-level factors influence macro-level innovation processes, this study aims to contribute to the broader understanding of creativity and innovation, a theme at the heart of addressing contemporary global challenges.
Design/methodology/approach
Econometric methodologies were used to analyse a data set comprising 2,660 firm-year observations spanning the decade from 2011 to 2020.
Findings
A key finding was that companies with lower managerial prowess strategically leverage R&D intensity to signal their value to the market and accrue reputational currency. The research unearths a significant positive relationship between managerial ability, IPRs and R&D investment. In environments characterized by strong managerial acumen and robust IPR safeguards, firms exhibit a heightened propensity to allocate resources to R&D endeavours. This underscores the role of intellectual leadership and legal protections in shaping R&D strategies within the pharmaceutical domain. Incorporating firm life stages as a moderating factor reveals that firm maturity fundamentally influences the interplay between managerial ability, IPRs and R&D expenditure.
Originality/value
These findings’ implications resonate profoundly within policy-making circles and pharmaceutical firms’ day-to-day operational strategies, underscoring the pivotal role of intellectual capital and legal safeguards in shaping the future of innovation in the Asia-Pacific pharmaceutical sector.
... The assumptions of the resource theory of competitive advantage are as follows (Barney, 1991): ...
... According to Barney (1991), resources refer to "all assets, capabilities, organizational processes, company characteristics, information and knowledge that the company uses in designing and implementing strategies to increase efficiency and effectiveness". Amit and Shoemaker (1993) define resources as "a set of available factors that a company owns or controls". ...
... Organizational resources are history, relationships, trust, organizational structure, formal reporting structure, managerial control systems and reward policies. Barney (1991) develops the so-called The VRIN framework and states that valuable, rare, imperfectly imitable and not substitutable as the strategic significance of resources, i.e. the potential of resources for creating a sustainable competitive advantage. The value of a resource lies in its ability to neutralize threats and enable the company to take advantage of opportunities that arise in the business environment. ...
... In light of the importance of sustainable development, we examine the extent to which acquirers' environmental innovation determines the value created (captured by M&A announcement returns) in subsequent M&A transactions. Drawing on the resource-based view (RBV) (Barney, 1991;Hart, 2005;Hart and Hart, 1995), we hypothesise that acquirers' level of environmental innovation partly explains their performance in M&As. This is mainly because environmental innovation is a distinct resource or dynamic capability that is not available to all acquirers. ...
... RBV emphasizes the significance of the firm's resources as the source of its competitive advantage (Barney, 1991;Lockett et al., 2009;Peteraf, 1993;Srivastava et al., 2001). Within the RBV framework, resources are those assets that are valuable, scarce, hard to copy and are owned or controlled by the firm (Cheng et al., 2014;Lockett et al., 2009;Penrose and Penrose, 2009). ...
... Within the RBV framework, resources are those assets that are valuable, scarce, hard to copy and are owned or controlled by the firm (Cheng et al., 2014;Lockett et al., 2009;Penrose and Penrose, 2009). These resources are historically determined, accrued and accumulated over time (Barney, 1991;Cheng et al., 2014;Penrose and Penrose, 2009) and are semipermanently tied to the firm (Wernerfelt, 1984). Some resources are obvious and tangible, such as physical capital and brand names, while others are less obvious and intangible, such as organisational routines and capabilities (Teece et al., 1997). ...
Drawing from the resource-based view (RBV), we examine the effect of environmental innovation on mergers and acquisitions (M&As) announcement returns. Using an international sample of M&As for the period 2003 to 2021 and an event study methodology , we document that acquirers with higher environmental innovation-innovative acquirers-earn average deal announcement abnormal returns that are 0.10 to 0.50 percentage points higher than those earned by their non-innovative counterparts. These results are consistent across three important forms of environmental innovation (i.e., product, process and organizational innovation) and are partly explained by the transfer of environmental innovation from the acquirer to the target. We further find that environmentally innovative acquirers are more likely to engage in majority control and cross-border acquisitions, thus emphasizing the transfer effect. Overall, we contribute to RBV by providing evidence that environmental innovation is a distinctive resource or dynamic capability that is transferable from bidders to targets in the takeover market.
... This investigation is grounded in the resource-based view, or RBV, paradigm of the company. The RBV theory of the business, which dates back to the early 1980s, became well-known in the 1990s (Barney, 1991;Wernerfelt, 1984), greatly enhancing the argument for the importance of HRM for strategy research (Wright et al., 1994). According to RBV, companies need to have resources that are "valuable," "rare," "imperfectly imitable," and "non-substitutable" since they can provide them a long-term competitive edge over rival businesses (Hoskisson et al., 1999). ...
... Either way, a company's resources, or bundle of resources, allow it to develop and execute strategies that other companies are unable to. This happens because current or potential competitors lack the resources and/or ability to create and execute strategies that are comparable, or both (Barney, 1991). Even though a firm's resources can vary, RBV identifies IC as one of the most important intangible resources (Wright et al., 1994). ...
... To comprehend the impact of key variables on the environmental performance of hotels, the research paper "The Mediating Role of Green Human Resource Management: Analyze the Impact of Green Commitment and Intellectual Capital in Hotel Environmental Performance" explores the complex relationships between these variables. Green commitment and green intellectual capital are independent variables, and green human resource management (GHRM), which consists of components like green training, involvement, performance management, orientation, employee empowerment, and compensation, acts as the mediating variable between them (Ahmed et al., 2023;Barney, 1991;Yusliza et al., 2019). The dependent variable is environmental performance, which is measured. ...
The rapid growth and expansion of the economy have given rise to several environmental concerns. The hotel industry's activities might be directed to ecological harms such as the diminution of usual resources, global warming, and the emission of various green hazards that lead to wildlife extinction and water, air, light, and industrial pollution. The hotel business can become more environmentally friendly by utilizing employee green service recovery performance to determine which issues are environmentally friendly or unfriendly and are motivated by eco-friendly dedication and sustainable human resource management (GHRM) practices. GHRM encourages employees to be committed to the environment and act sustainably, enabling hotels to enhance their environmental sustainability. The key benefit of this research is to make it easier to understand how integrating GHRM practices improves environmental performance by increasing employees' commitment and behavior in an environmentally friendly manner. The modern study aimed to inspect and assess the effect of green intellectual capital and green commitment on environmental performance with the assistance of employees and managers working in hotels in India. It also investigates how green management of human resources affects how environmentally responsible hotels are. Moreover, Structural Equation Modeling (SEM) will be implemented to continuously evaluate any proposed interlinkages between the latent construct. Empirical findings have revealed that managing sustainable human resources improves employees' commitment to the organization, their environmentally responsible conduct, and the environmental performance of hotels. Before the conclusion, a few of the study's shortcomings and suggestions are presented.
... In this context, knowledge, information, intellectual property, and the experience of human talent constitute the resources that contribute to a company's growth [2]. A widely used theory in research related to the management of intangible company resources is the Resource-Based View Theory (RBV) [3]. The RBV provides a conceptual framework that helps organisations take advantage of their internal resources and capabilities, such as human and structural capital, in order to obtain good financial performance [1], [4], [5], [6], [7]. ...
... The RBV provides a conceptual framework that helps organisations take advantage of their internal resources and capabilities, such as human and structural capital, in order to obtain good financial performance [1], [4], [5], [6], [7]. The RBV includes all assets, capabilities, organisational processes, company characteristics, information, and knowledge controlled by the same company, enabling it to develop strategies to increase its effectiveness and efficiency [1], [8], [3]. Despite the importance of the RBV in managing business resources, it has been criticised for not providing useful recommendations to company managers. ...
... Despite the importance of the RBV in managing business resources, it has been criticised for not providing useful recommendations to company managers. It does not specify the resources that must be accumulated to achieve competitive advantage, lacks self-explanatory arguments, its relevant domain is unclear, and it is overly general regarding the question of whether different configurations of resources and capabilities achieve the same purpose [8], [3], [9]. Given these concerns and criticisms, Priem and Butler [10] proposed a mid-range theory called Intellectual Capital Theory, which complements the RBV and considers that a company's intangible assets are valuable resources that must be managed and valued appropriately through its three components: human, structural, and relational capital; have sustainable financial performance, which has also been corroborated by Barrena-Martínez et al. [11]. ...
We verify the moderating effect of managerial ambidexterity on the relationship between intellectual capital and financial performance of small manufacturing companies in Peru. The study used a quantitative, non-experimental, cross-sectional design. The sample consisted of 506 small manufacturing firms. To determine the hypothesised model’s validity and reliability, we performed an exploratory factor analysis using a rotated component matrix to group questions within their corresponding constructs. Next, we assessed convergent and discriminant validity using measures such as Cronbach’s alpha, composite reliability, and average variance extracted. Finally, we tested the model hypotheses using structural equation modelling. SPSS 27 and AMOS 24 were used for all analyses. The study showed that there is a partial moderating effect of managerial ambidexterity on the relationship between intellectual capital and financial performance of small manufacturing firms in Peru. Additionally, statistical analysis showed that managerial ambidexterity moderates the direct relationship between structural capital and relational capital with financial performance, while no moderation effect was observed for human capital. This study provides valuable information for academia and management as it is the first to analyse the relationship between intellectual capital and financial performance, considering the moderating effect of managerial ambidexterity in small manufacturing firms in Peru. This innovative approach makes a significant contribution to scientific knowledge by investigating how managerial ambidexterity affects the financial performance of businesses in emerging economies, an area that has received little prior research.
... Drawing on the Resource-Based View (RBV) theory, it is posited that organizations' intangible capitals, i.e., human capital, lead to sustainable performance and competitiveness through value creation, innovation, and robust network connections (Barney, 1991;Campbell & Park, 2016;Santarelli & Tran, 2013). Empirical studies on RBV suggest that HC, including the distinctive and valuable knowledge, skills, and capabilities of a company's human resources, especially SMEs, is one of the factors driving innovation and creativity (Dhar et al., 2020;Pradana et al., 2020;Sun et al., 2020) and the primary driver to explain the competitive advantage (CA) maintained by organizations in the long-term (Assensoh-Kodua, 2019; Barney et al., 2001;Dwikat et al., 2023). ...
... Organizations, including SMEs, can attain sustainable competitive advantage by possessing invaluable, unique, incomparable, and irreplaceable resources (Barney, 1991). Sustainable competitive advantage provides a long-term benefit that a company possesses over its competitors, owing to the unique quality of its products, services, or image (Suryantini et al., 2023). ...
... Organizational capability in RBV theory (Barney, 1991), indicated by the attachment of employees collectively as members of the organization, is an aspect that must be considered in the organization's attempt to attain sustainable competitive advantage (Eldor, 2019). Researchers are inclined to highlight that individual-level engagement is conceptually inadequate to cope with dynamic business transformation (Kleinaltenkamp et al., 2019). ...
The present study centered on the mediation of innovation and the moderation of collective organizational engagement in affecting human capital (a combination of skill and knowledge) on sustainable competitive advantage and further examined human capital, innovation, and collective organizational engagement impacts on sustainable competitive advantage. Subsequently, this study utilized a quantitative approach, engaging 270 sample frame SME units in Indonesia using a Likert scale questionnaire and examining it using SEM-PLS. The findings demonstrate that human capital positively and significantly impacted innovation and sustainable competitive advantage, indicating that a high level of business skill, business orientation, perception of risk, and know-how management enhances the organization's innovation capability, creating distinctive, exceptional, and invaluable resources as core competencies of sustainable competitive advantage. This study confirms and advances the RBV theory and previous studies by examining intangible resources' mediating and moderating role, in which innovation contributes to mediating the effect of human capital on sustainable competitive advantage and collective organizational engagement reinforces (moderates) the impact of human capital on establishing sustainable competitive advantage. So, the results of this research illuminate the significance of human capital, innovation, and collective organizational engagement as the organization's superior resources in manifesting sustainable competitive advantage.
... In this research, we harness the resource-based theory and the theory of planned behavior to elucidate the theoretical underpinnings and transmission mechanisms guiding our research. The resource-based theory provides insights into how variations in firms' competitiveness and performance are rooted in their resources, emphasizing the strategic significance of innovative resources (Barney, 1991). Conversely, the theory of planned behavior explores the decision-making process by examining human behavior logic, focusing on attitudes, subjective norms, and perceived behavioral control (Yang & Ahn, 2020). ...
... It posits that enterprises possess diverse resource endowments, leading to variations in their market sensitivity. Enterprises guard their resources closely as they are the primary source of their competitiveness and are challenging to replicate or share among competitors (Barney, 1991;Dong & Wang, 2022). These resources, categorized into entrepreneurial, organizational, and scientific/technological resources, play pivotal roles in shaping enterprises' capabilities, particularly during the startup phase, where entrepreneurial resources reflecting the personal characteristics of entrepreneurs hold significant sway (Kurpayanidi, 2021;Sili & Dürr, 2022). ...
This research investigates the nexus between innovation resources, international perspective, and international entrepreneurship, drawing on the resource-based theory and the theory of planned behavior. Leveraging a dataset of entrepreneurial ventures across diverse industries and regions, we employ regression analysis to explore the relationships between these constructs empirically. Our findings reveal significant positive correlations between international perspective and international entrepreneurship, as well as between innovation resources and international entrepreneurship. Moreover, we uncover the moderating effect of economic development on the relationship between international perspective and international entrepreneurship, highlighting the importance of contextual factors in shaping entrepreneurial decisions. However, we find no significant moderation effect for innovation resources, suggesting the need for further exploration. Theoretical implications underscore the importance of integrating resource-based and behavioral perspectives in understanding international entrepreneurial behavior. In contrast, policy implications emphasize the role of fostering innovation ecosystems to support internationalization efforts. Finally, avenues for future research are identified, including longitudinal studies and interdisciplinary approaches to enrich our understanding of international entrepreneurship dynamics.
... For example, the regulation of going-concern companies and the winding up of failed enterprises each have a different goal and, hence, require a different understanding of organizational boundaries (Armour et al., 2017;Hansmann & Kraakman, 2000;Hansmann et al., 2005). And, in order to understand the organization and sustainability of cooperative activity, management scholars conceptualize organizational boundaries in terms of the locus of power relationships, the loyalties of employees, and the ways in which competition and cooperation occur (e.g., Araujo et al., 2003;Barney, 1991;Kast & Rosenzweig, 1972;Sabel, 1993;Womack et al., 2007). ...
... Some important normative contributions to the management literature are inspired by Coasean positivistic analysis. For example, the Resource-Based View of the Firm conceptualizes the organization as a collection of assets and asks how its boundaries should be drawn in order to achieve sustained competitive advantage (Barney, 1991;Barney et al., 2001;Mahoney & Rajendran Pandian, 1992;Wernerfelt, 1984). Relatedly, the literature on lean production asks how organizational boundaries ought to be positioned in pursuit of efficient supply chain management (e.g., Womack et al., 2007). ...
This paper presents an account of the moral boundaries of organizations. We define an organization’s moral boundary to encompass all of the actions for which it could be held morally responsible. Our theory requires us to view organizations as subjects that act in the world, rather than as objects that are used as tools; that is, it requires us to focus on corporate moral agency. We present a process model for determining whether a given action lies within an organization’s moral boundary, and we discuss how an organization’s moral boundary can be created, destroyed, or modified as a result of deliberate choices by human and organizational actors. Our article contributes to the literature by conceptualizing the distinction between organizations as subjects and organizations as objects, and so clarifying the distinction between legal and moral boundaries; by recentering the discussion of boundaries on organizational actions rather than on contingent institutional features; and by adding nuance to the assignment of moral responsibility in complex organizational networks and in situations where one corporate moral agent depends upon another for its existence.
... El referente teórico para este estudio es la teoría basada en recursos ("resource-based theory" -RBT) desarrollada por Barney (1986). Bajo este marco, Barney (1986Barney ( , 1991 declaró que las organizaciones deben identificar las capacidades de la empresa y las brechas de recursos que deben llenarse, invertir en la reposición y aumentar los recursos de la empresa para lograr una ventaja competitiva y alcanzar los objetivos de la organización. Mahoney (1995) mencionó que el potencial de generación de ingresos depende de los recursos asignados por el equipo gerencial. ...
... La RBT es apropiada para este estudio porque proporciona las bases para explicar la relación entre los recursos de la organización y el rendimiento. Barney (1986Barney ( , 1991 afirmó que las organizaciones deben identificar las capacidades y recursos de la empresa para lograr una ventaja competitiva y alcanzar los objetivos de la organización. El modelo de teoría basada en recursos diseñado y adaptado por Grant (2005), utilizado en este estudio, dividió los recursos en tres áreas: tangible, intangible y recursos humanos (Zhao & Fan, 2018). ...
Esta investigación examinó la relación entre los recursos presupuestarios y el cumplimiento tributario del Departamento de Hacienda de Puerto Rico del 2000 al 2020. La evasión contributiva es un problema constante en Puerto Rico, en la cual el gobierno obtiene menos recaudos para proveer bienes y servicios. El problema específico consiste en que el Departamento de Hacienda tiene limitados recursos presupuestarios para promover el cumplimiento tributario. La justificación de este estudio es que los líderes gubernamentales y profesionales de impuestos pueden validar la importancia de una adecuada asignación presupuestaria a las agencias fiscalizadoras de impuestos para promover el cumplimiento contributivo. Los objetivos de este estudio consisten en identificar la relación entre los recursos presupuestarios asignados al Departamento de Hacienda de Puerto Rico y el cumplimiento tributario. Este estudio es exploratorio, el cual utiliza una metodología descriptiva y correlativa sobre los presupuestos y recaudos de Departamento de Hacienda por un periodo de 20 años. Usando la teoría basada en recursos, el estudio analizó la relación de los presupuestos de tecnología, administración y recursos humanos asignados al Departamento de Hacienda sobre los recaudos contributivos. Los hallazgos presentan una relación significativa de los presupuestos de administración y tecnología con un efecto de rezago sobre la recaudación de ingresos tributarios. Los resultados validan la importancia de la tecnología para promover la eficiencia y reducir los recursos humanos para maximizar el cumplimiento contributivo. Los hallazgos son útiles para que los líderes organizacionales promuevan recursos presupuestarios adecuados, especialmente en tecnología, para promover el desempeño organizacional y reducir la evasión tributaria en beneficio de la economía y la comunidad.
... The Resource-Based View (RBV) is a strategic management theory that emphasizes the role of a firm's internal resources and capabilities in achieving competitive advantage (Barney, 1991) [1] . According to RBV, resources that are valuable, rare, inimitable, and non-substitutable (VRIN) can lead to sustained competitive advantage. ...
... The Resource-Based View (RBV) is a strategic management theory that emphasizes the role of a firm's internal resources and capabilities in achieving competitive advantage (Barney, 1991) [1] . According to RBV, resources that are valuable, rare, inimitable, and non-substitutable (VRIN) can lead to sustained competitive advantage. ...
Artificial intelligence (AI) has emerged as a transformative technology, revolutionizing various aspects of business operations, including human resources (HR) management. This study aims to analyze the impact of AI on the HR recruitment process in businesses located in Hanoi, Vietnam. Through a mixed-methods approach, involving surveys and in-depth interviews with HR professionals from 20 companies, the research examines the current level of AI adoption, its effects on recruitment efficiency and effectiveness, and the challenges encountered during implementation. The findings reveal that while AI adoption in HR recruitment is still in its early stages, businesses that have embraced AI-powered tools have experienced improved efficiency in candidate screening, enhanced job-candidate matching, and reduced time-to-hire. However, the study also uncovers significant challenges, including the need for specialized AI skills, concerns about job displacement, and the importance of striking a balance between automation and human touch in the recruitment process. The research offers valuable insights and recommendations for businesses in Hanoi aiming to harness the potential of AI in HR recruitment, emphasizing the need for strategic planning, workforce upskilling, and the development of ethical guidelines. The study contributes to the growing body of knowledge on AI applications in HR and provides a context-specific understanding of AI's impact on recruitment practices in Hanoi's business landscape.
... The Corporate Internal Practices or characteristics of an organization make up critical sources for success [109] . A growing emphasis has been placed on determining which corporate internal practices are critical to organizational success and how they influence organizational outcomes and long-term sustainable development. ...
... Organization culture is defined as the shared assumptions, beliefs and 'normal behaviors (norms) present in an organization is a source of sustained competitive advantage [109] . Most organizational scholars and observers recognize that organizational culture has a powerful effect on the performance and long-term effectiveness of organizations. ...
近年来，企业社会责任(CSR)问题受到社会各界的广泛关注。有观点 认为，企业通过能力建设积极参与社会公共事务，有利于发展中国家的进步， 企业社会责任通过政府和社会资本合作(PPP)促进了发展。在马尔代夫，企 业社会责任仍是一个新兴研究领域。从现实情况来看，作为小岛屿发展中国 家(SIDS)，马尔代夫面临着巨大的环境挑战——资源的缺失与生态系统的脆 弱使其被认定为环境脆弱型国家。因此，企业(特别是私营企业)对其实现 可持续发展发挥着重要作用。
基于上述现实问题与对相关文献的梳理，本文评估了马尔代夫在企业社
会责任方面的实践情况，探究了承担社会责任对企业绩效的影响状况，以及
环境监管的中介作用，从财务、经济与社会环境三个方面探索了马尔代夫的 可持续发展能力。通过上述研究，本文得到以下主要结论:第一，企业社会 责任的总体排名与企业绩效之间存在显著关系，其中社区和治理维度显示为 正相关，员工和环境维度显示为不相关。第二，环境管理对企业可持续发展 具有直接正向影响，环境监管和报告在其中发挥着积极的中介作用。最后，需要注意的是，在可持续发展维度的影响中，社会可持续性的影响最大 企 业可持续性中的经济和环境方面次之，并且在企业内部实践与可持续发展二 者关系中，利益相关者(股东)的参与起着极大的中介作用。
本文研究结果表明，企业承担社会责任对企业财务绩效、企业可持续性
以及马尔代夫商业可持续发展均有较强影响。本文研究贡献主要有四点:一
是通过研究企业社会责任对企业绩效的正向影响，改善了企业承担社会事务 的商业理念;二是启发了马尔代夫的决策者们，对上市公司的社会责任绩效 进行评级;三是本文涉及了监管与报告的中介作用，为利益相关者(股东)
未来评估投资的企业提供了依据，并有利于推动小岛屿发展中国家进行环境 管理和可持续发展;最后本文启示，要加强关键利益相关者的关系管理，通 过合规透明的措施，促进整体可持续发展。
The concepts and practices of Corporate Social Responsibility are continuing to gain considerable attention from business leaders, government officials, and academics. More recently, it has been argued that a purposeful engagement of corporations in societal affairs through an active contribution to capacity building is crucial for the progress of developing nations and corporate social responsibility could be a vehicle for development through public-private partnerships. The field of corporate social responsibility is still uncovered ground, at an early stage of development in the Maldives. Furthermore, given the immense global environmental challenges and their social and economic consequences, developing countries, especially small island developing states such as the Maldives are environmentally vulnerable and struggling for sustainability.
Moreover, environmental issues such as climate change, waste, and pollution have been frequently discussed and debated among experts and practitioners, and in the world media. Small Island Developing States (SIDS) have been recognized as being environmentally vulnerable because they tend to have a small set of resources and have delicate fragile land and marine ecosystems and a relatively high vulnerability to natural disasters. Hence, the role of businesses, especially the private sector businesses in achieving sustainability has ever been important. Considering past studies and immense literature about corporate social responsibility and various dimensions of corporate responsibility towards achieving better corporate performance reflects on society, economy as well as environment. This thesis aims to evaluate the current understanding and practices of corporate social responsibility, environmental management practices, other related corporate internal practices towards achieving corporate financial performance, corporate sustainability, and sustainable development. The in terms of financial, economic, social, and environmental aspects in the context of the Maldives and explores the potential for sustainability through three main studies.
As for the methodologies and research discipline employed, for the first study on the impact of corporate social responsibility on corporate financial performance, the secondary data related to corporate social responsibility, financial variables have been collected from the Maldives Stock Exchange, and through content analysis, a corporate social responsibility index was developed for the study. Where else, for the last two studies, a brief focus group discussion and a preliminary test were conducted through a focused group meeting with industry experts before data were collected from senior management of registered businesses in the Maldives. Data for the three studies were analyzed using various statistical software such as the Statistical Package for the Social Sciences (SPSS) and tested using variance-based structural equation modeling (SEM) and the partial least squares (PLS) estimation technique, which is implemented in the statistical software package Advanced Analysis of Composites (ADANCO) 2.0.1.
Findings from the first study demonstrated a significant relationship between overall CSR ranking and financial. However, among the dimensions of CSR, only the community and governance have a significant positive association with financial measures, whereas else the dimensions of employees and environment do not have any significance with financial performance. Furthermore, the study two results showed that environmental management practices have a direct and positive effect on corporate sustainability. Likewise, environmental regulation and reporting positively mediate the effect of environmental management practices on corporate sustainability. Among the sustainability dimensions, it is important to note that the social sustainability aspect has the highest impact, followed by the economic and environmental aspects of corporate sustainability. The research implication and future research directions provided from the first study, required the final study if identify the impact of corporate internal practices towards sustainable development with the mediating effect of stakeholder involvement and the results proved that there is a strong effect of the mediating effect of stakeholder engagement on the relationship between corporate internal practices and sustainable development.
To summarize, the majority of the finding of the studies presented relatively a stronger relation between corporate social responsibility practices towards achieving positive corporate performance in terms of corporate financial performance, corporate sustainability, and sustainable development of business in the Maldives. The study results delivered the expected research objectives and provided implications to control the effect of corporate social responsibility dimensions on businesses' performance strategically and to revise business philosophies to a socially responsible approach. It also contributes to helping the decision-makers to come up with concepts to initiate and provide a social performance rating for the Maldives listed companies. Furthermore, the studies presented in the thesis served as noteworthy research for stakeholders to evaluate against regulatory and reporting requirements for businesses they invest in in the future. It adds value to the literature and attempts to advance environmental management and sustainability research in the context of small island developing
states as well. The thesis results present are noteworthy and practical for stakeholders and policymakers to follow through the necessary compliance and transparency measures that impact overall sustainability as well as strengthening the key stakeholder relationship management for striving in the with overall corporate performance for the business in the future.
... The RBV theory suggests that businesses (or organisations) need to effectively exploit their resources effectively if they want to create a sustained competitive edge (Barney, 1991). It is explained that businesses could leverage all types of resources that they possess, either tangible or non-tangible. ...
... From the market share perspective, it is said that the automotive business market in northern Peninsular Malaysia is dominated by a few particular businesses. They are the key businesses which not only leading in terms of sales but also the supply chain of automotive spare parts, which give them extra leverage in terms of their competitive advantages in the market (Barney, 1991;Kamarudin et al, 2021a). As a result, other businesses, including KBSB, found it difficult to compete, and necessary support, especially for new businesses in the market, is rather necessary for their survival. ...
A diversification strategy is one of the means to expand business among corporations, including Small and Medium Enterprises (SMEs). In Malaysia, many successful stories of SMEs’ diversification strategies permit others to follow in their footstep. The success of the strategy allows businesses to develop not only locally but also venture into the international market. However, various issues and challenges could be associated with diversification strategy implementation particularly among SMEs within multiple industries involved. Therefore, this study aims to discover the issues and challenges faced by Kental Bina Sdn. Bhd., one of the steadily growing diversified businesses in Northern Peninsular Malaysia. This study employed a few rounds of one-on-one interviews with the business owner as the key informant to meet the study objective. The recorded interview sessions are then transcribed and analyzed using thematic analysis through the Nvivo12 software. From the policy viewpoint, this study sheds light on the development of entrepreneurial training programs. The training program conducted by the relevant ministries and government agencies, including the Ministry of Entrepreneur and Cooperatives Development (MECD), Majlis Amanah Rakyat (MARA), SME Corporation (SMECorp.), and Tekun Nasional (TEKUN), needs to be specifically designed to address the issues and challenges of business diversification particularly among SMEs. For practical implication, this study helps to offer important information and inputs among other businesses, particularly SMEs, on what to expect when starting their diversification planning and strategy.
... Knowledge management literature links the RBV logic of strategic management (Penrose, 1959; Barney, 1991;Juga, 1999;Wernerfelt, 1984;Grant, 1991;Day, 1994;Teece et al., 1997;Selznick, 1957;Prahalad and Hamel, 1990;Amit and Schoemaker, 1993) with knowledge-basedview (KBV) for crafting business strategies (Massingham, 2004). This is because KBV views tacit knowledge as valuable, rare, inimitable and non-substitutable resource. ...
This theoretical paper expounds the basic tenet of knowledge-based view (KBV) of the irm that tacit knowledge lies at the basis of sustained competitive advantage accrued to a company. This is because tacit knowledge embodies the intangible, valuable, rare, inimitable and non-substitutable human core capabilities and competencies. Taking lead from Berman et al. (2002) study of National Basketball Association (NBA), this paper proposes to use the notion of collective mind or stock of tacit knowledge of a Cricket team and suggests a positive relationship between shared team experience (a proxy for tacit knowledge) and team performance. The paper also suggests that over a period of time the relationship may turn negative because of the knowledge ossiication or routinization of tacit knowledge schemas acquired by the players. Future research implications for other formats of Cricket apart from ODI matches and other sports are also discussed.
... As the students learn about the strategic management process, they are also introduced to the concept of strategic analysis, defined by Worrall as the development of, a theoretically informed understanding of the environment in which an organisation is operating, together with an understanding of the organisation's interaction with its environment in order to improve organisational efficiency and effectiveness by increasing the organisation's capacity to deploy and redeploy its resources intelligently (1998, p.1). The strategic analysis tools that students learn include among others, SWOT Analysis, Value Chain Analysis (Porter, 1989), Resource-Based View and VRIO Framework (Barney, 1991;, Core Competencies (Hitt et al., 2016), Balanced Scorecard (Perramon et al.,2016;Kaplan & Norton, 1992;7S Model (Waterman, 1982), Scenario Planning (Schoemaker, 1995, PESTEL Analysis (Henry, 2021), Porter's Five Forces (Porter, 1989;, Hotel Competitor Analysis Tool (Enz & Thompson, 2011), Destination Competitiveness Model (Ritchie & Crouch, 2003), Butterfly Competitiveness Model (Altinay & Kozak, 2021), Critical Success Factors Model (Rockart, 1979), Gap Analysis (Parasuraman et al., 1985;, Customer Journey Mapping (Rosenbaum et al., 2017), Market Segmentation (Johnson, 1995), Perceptual Mapping (Rothschild, 1987), BCG Matrix, GE/McKinsey Matrix (Rudnicki & Vagner, 2014), Product Life Cycle (Levitt, 1965), and Triple Bottom Line (Elkington,1994). These strategic analytical tools in the preceding paragraph, while far from being exhaustive, demonstrate the complexity and eclectic nature of the landscape of strategic analyses tools that students must sift through to locate the right one for the right challenge. ...
Students of strategic management are often inundated with a plethora of analytical tools from which they must chose a select few to help them to effectively analyse the forces impacting the sustainable competitiveness of an organisation. Choosing the right tool(s) can be daunting, yet crucial for understanding organizational challenges and crafting relevant and effective strategic solutions. This desk research study explores the utility of analogies and metaphors as pedagogical tools to prepare students to become adept in strategic analysis. Aristotle likened metaphors to puzzles, suggesting that, like puzzles, metaphors engage us in figuring out how one thing resembles another. It is during this active participation and interpreting that makes analogies and metaphors effective in making complex strategy concepts more relatable to students. Through the process of analogical encoding, this conceptual study argues that the medical analogy holds promise for effective scaffolding of students’ learning, demystifying abstracts and making them more relatable in addition to structuring thinking across domains as well as promoting critical thinking, decision-making, creativity, problem-solving, collaboration and communication skills - key 21st century skills sought by industry. By leveraging familiar medical analogies, teachers or educators can promote learner-centred authentic learning, simultaneously enhancing the students’ learning experience.
... Studies in various contexts reveal that market orientation positively influences organizational learning, innovation, and overall performance (Hu et al., 2020;Peng et al., 2019). Resource-based theory offers a lens to understand this relationship, emphasizing the strategic capabilities derived from market orientation that enhance firm performance (Barney, 1991;Murray et al., 2011). However, some studies challenge this relationship, suggesting moderating factors like creativity, knowledge type, and competitive strength (Augusto & Coelho, 2009;Kim et al., 2013). ...
This study investigates the impact of market orientation and collaboration with supply chain members on product innovation performance in Guangdong IoT companies. Empirical analysis reveals that both dominant and reactive market orientations positively influence collaboration with supply chain members and product innovation performance. The study identifies three dimensions of innovation competency—strategic collaboration, research and development collaboration, and marketing collaboration—and highlights their mediating role in the relationship between market orientation and product innovation performance. Moreover, environmental turbulence moderates the impact of market orientation on product innovation performance, emphasizing the importance of aligning market strategies with external conditions. These findings contribute to theoretical understanding and offer practical insights for Guangdong IoT companies to enhance their innovation capabilities and drive product innovation in dynamic market environments.
... Blockchain will effectively address the lack of trust by providing the ability to trace the origin of transactions and digital assets and ensure the immutability of records. Besides, Blockchain has the potential to create a strategic alliance between two or more organizations to exchange and share resources or to co-develop products, services, or technologies, leading to enhanced competitive position and operational efficiency [27]. In addition, Blockchain will help businesses in the alliance improve their value, specificity, and inimitableness. ...
This paper presents a Blockchain-based framework for providing Blockchain services for purposes of stability in terms of consensus protocol infrastructure and governance mechanisms and accessible auxiliary services suitable for the vast majority of current business needs, including fundamental factors such as digital identity with autonomous identity, building solutions to ensure transaction privacy with zero-knowledge proofs, and other services related to digital assets. The proposed framework helps promote digital transformation for businesses, especially small and medium enterprises with limited resources and costs, to apply Blockchain technology to their business models, increasing competitive advantages and assisting the companies in focusing on business logic while still using Blockchain technology in their functions.
... Penrose (2009) developed the initial theory of how a firm's resources affect its growth, in particular, growth is constrained when resources are insufficient. Barney (1991) articulated the full set of characteristics (i.e., valuable, rare, inimitable, and irreplaceable) that make resources a potential source of competitive advantage. In line with the theory, Zahid et al. (2023) state that improved ESG disclosure can allocate resources from free cash to ESG measures, realize environmental concerns for sustainable growth and facilitate firms to gain a competitive advantage, increase transparency among stakeholders, and thus reduce the cost of debt. ...
The purpose of this article is to provide a comprehensive and systematic assessment of the literature on the consequences of environmental, social, and governance (ESG) disclosure by means of content analyses. Using a systematic approach, a sample of 165 studies was collected from the Web of Science database and evaluated on the basis of econometric and content analyses, including publication trends, geographical distribution, theories and consequence associated with ESG disclosure (investment and innovation of firms, financing cost and method, operations and financial risk of firms, firm performance and value and others), provides some direction for future investigation. According to the analysis, the literature was more interested in the stakeholder theory when examining the effects of ESG disclosure on areas including company innovation and investment, financing costs and methods, financial risk and operations, business performance, and others. Even though most of the literature has focused on firm performance and value, there is still no clear understanding of the relationship. Also, limited work was found on the investment and innovation of firms, and financing cost and method, while the impact of operations and financial risk of firms has yet to be explored. Meanwhile, this study also identified the impact of ESG disclosure on analysts, audit fees, and earnings management as a new research direction. Finally, this study innovates new findings that institutional pressures may have an impact on the consequences of ESG disclosure, a topic not found in previous studies. K E Y W O R D S cost of financing, ESG disclosure, financial risk, firm performance, innovation, institutional pressure, stakeholder engagement, sustainable development
... It has no managerial implications, it implies infinite regress. The definition of a resource is unworkable Wernerfelt (1984), Barney (2002Barney ( , 2001Barney ( , 1999Barney ( ,1996Barney ( ,1994Barney ( , 1991aBarney ( , 1991b, Connor(2002, Miller (2003 Peckin g Order Theory A firm's financing is determined by the firm's preference to finance with internally generated funds instead of with external financing. If external financing is required, debt is preferred over equity. ...
... In a fully competitive environment, strategic agility has an important impact on firm performance (Barney, 1991;Shin et al., 2015;Venkatraman, 1989). However, companies with strategic agility in the inert zone are often faced with a market that is not fully competitive, so their performance is uncertain. ...
Enterprises must optimize resource allocation to achieve their strategic objectives in the context of international competition. This paper proposes a comprehensive index to measure the strategic agility of small and medium-sized enterprises (SMEs) using the basic data of online surveys based on multiple indicators and Likert scale. Then, the paper constructs an econometric model to conduct empirical analysis with representative sample data from the SEMs in the computer, communication, and other manufacturing industries in China. The paper demonstrates the nature and measurement of strategic agility and the matching of resources with strategic agility and advances a theoretical framework that enterprises’ strategic agility determines the joint allocation of non-financial resources to support strategies. The results indicate that enterprises must jointly allocate their resources according to their strategic agility, only in this way can they achieve their strategic goals and outperform their competitors. The paper further develops the concept and idea of strategic agility level zone of effective zone, inert zone, and hyper-power zone, so that enterprises may adopt different strategic decision-making based on different zones. The paper contribute to the literature on interdependencies between strategic agility and resource allocation.
... This study chose Porter's diamond model as a critical framework because it helps to explain the relationship between government programmes and the competitive advantage of private business enterprises in the halal cosmetic and personal care industry. Competitive advantage is a company's ability to enforce a value-creating strategy that not been applied by any current or potential competitors (Barney, 1991;Grant et al., 2010). The concept of competitive advantage of private business enterprises permits the cosmetic and personal care industry to produce a good service in a desirable fashion implementing a value-creating strategy to venture into the halal industry to generate more sales than other market rivals. ...
The Halal Industry Master Plan reflects the commitment and effort of the Malaysian government to encourage private business enterprises in the halal cosmetic and personal care industry to be more competitive. The private business enterprises need a more competitive advantage to compete with international non-certificate halal cosmetic products and more capacity to export halal cosmetic and personal care products. This empirical study was conducted to test the relationship between government support programmes and the competitive advantage of private business enterprises and examine the effect of the mediating variable of business opportunity on the relationship between government and public business enterprises. Data were collected from 84 participants from the top management in private business enterprises in cosmetic and personal care products. Data were analysed by using PLS-SEM. A significant positive relationship between contractual programmes and competitive advantage was found. However, this relationship could have been more significant when business opportunity was included as a mediating variable. Meanwhile, the study found a negative relationship between relational programmes and competitive advantage. Surprisingly, the relationship between relational programmes and competitive advantage became positive when business opportunity was added to the model. This study focused only on Malaysia’s halal cosmetic and personal care industry. Future studies may be conducted in other halal sectors and other regions.
... Based on the definition put forward by the company, Wernerfelt (1984) put forward a view based on the resources owned by the company (resources-based view) when a company develops a business strategy that can create a sustainable competitive advantage. Basically determined company performance is strongly influenced by internal resources (Barney, 1991). ...
Objectives: Business continuity of the Village Credit Institution in Bali is closely related to the customs and culture of Balinese society, which are based on Hinduism. The key to successful intermediation by the Village Credit Institution as a microfinance institution is heavily influenced by local rules strictly adhered to by the Balinese people. The key to competitive advantage for the Village Credit Institution can be seen from the number of strategic resources it possesses, especially immaterial or intangible assets that are not visible on the balance sheet. The research objective is to test the Resource-Based View Theory in relation to intellectual capital and business continuity of the Village Credit Institution, as measured by the philosophy of Catur Purusa Artha. Methods: The research method used to answer the research objectives involved a quantitative test with a Partial Least Square (PLS) approach. Results: The results of the research show that structural capital, social capital, and reputation capital can improve the performance and continuity of the Village Credit Institution. The mediating variable tested in this study is the performance of the Village Credit Institution, which serves as a mediating variable for the effect of structural capital, social capital, and reputation capital on the sustainability of the Village Credit Institution in Bali. Increasing structural capital involves a better understanding of the organizational structure that emphasizes internal control structures and social capital, which includes understanding the common goals of traditional villages. Reputation capital involves maintaining policies that favor indigenous villagers without sacrificing the profitability of the Village Credit Institution. Conclusion: The study concludes that intellectual capital, including structural, social, and reputation capital, plays a significant role in enhancing the performance and sustainability of the Village Credit Institution in Bali. The research highlights the importance of maintaining a balance between adhering to local customs and ensuring profitability to achieve long-term business continuity.
... It is important to understand a particular government's actions with respect to taxation and property seizure. Examples of political factors associated with a country's central government are the level of bureaucracy, corruption, and government stability (Barney, 1991). A culture of corruption in a country stifles business by creating an uneven playing field where corrupt individuals are better able to achieve their business goals than those who are not corrupt (Maiello, 2022). ...
This study took a conceptual approach to unraveling the political and legal environments impact on business operations. The study explains the link between business operations and adaptation to political policies capable of disrupting workflow. Political risk is a major issue that impacts firms' policy formation, implementation, and objective achievement. To adequately cope with political uncertainties, an understanding of political risk analysis procedure is paramount to free hitch business operation. Firstly, is to ascertain issues of relevance to Firms' through need assessment. Secondly, is Assessing potential political events, and lastly is addressing political risks through relationship building. Furthermore, the research outlined risk analysis, consulting local partners, and political risk insurance as the strategies needed in the management of political risks.
... The resource-based view and its extensions give us more theoretical bases. When a company's resources and skills are essential, rare, hard to copy, and can't be replaced, they set it apart from competitors (Barney, 1991). These could be data assets, agility, and mindset in digitalizing situations (Akhtar et al., 2018). ...
... Since Barney J.B.'s introduction of the VRIN framework in 1991, the Resource-Based Theory has evolved into a comprehensive theoretical system. Barney emphasized that key resources enabling a company to maintain competitive advantages should possess value, rarity, inimitability, and non-substitutability, underscoring the importance of resource capabilities in sustaining competitive advantages [1]. Peteraf, M. A. introduced the element of time, highlighting the need for companies to focus on resource dynamics and flexible resource allocation to adapt to ever-changing market environments [2]. ...
This paper employs resource-based theory to investigate the strategies adopted by enterprises in response to significant changes in industrial policies. We select China's leading education and training industry player, New Oriental Education & Technology Group, as a case study to analyze a series of resource allocation adjustments taken in response to the major industry transformation in the education sector in 2021, brought about by the introduction of the "Double Reduction" policy. Using a combination of cross-sectional and longitudinal comparative analysis, we explore the strategies for resource allocation adjustments and innovation in the face of adverse industry policies. We categorize these response measures into three stages: "immediate response - strategic adjustments - transformational innovation," and analyze the changes in resource allocation. In conclusion, we provide general strategic recommendations for enterprises to navigate industrial policy adjustments, aiming to offer reference and guidance for managing policy risks and developing core competitive capabilities.
... This not only enhances the overall customer experience but also contributes to the generation of augmented revenue streams (Grasso, 2006). Moreover, the efficient orchestration of inventory, workforce, and cutting-edge equipment within the operational framework holds the potential for substantial cost reductions (Barney, 1991). Through strategic deployment of advanced technologies and innovative methodologies, leaders can optimize the efficiency of their workforce, streamline production processes, and minimize downtime. ...
As technology continues to play a central role in shaping global industries, the performance of technology firms on the NASDAQ has significant implications for broader economic trends. Investors, facing an increasingly complex landscape, require detailed insights to make informed decisions and navigate market volatility. Moreover, amid the ongoing digital transformation, understanding the operational dynamics of technology companies is critical for policymakers and regulatory bodies to create frameworks that foster innovation while ensuring market stability. In the current context, characterized by rapid technological advancements, market uncertainties, and evolving consumer demands, the need for a comprehensive study on the operational efficiency of NASDAQ-listed technology companies is more pertinent than ever. Objective of our study is to identify relationships and patterns among selected financial metrics to assess the operational efficiency of NASDAQ-listed technology companies between 2011 to 2023. Financial metrics used in the study include following variables namely revenues, cost of goods sold, operating expenses, research, and development expenses, selling and general administrative expenses, and operating income. Johansen's cointegration methodology is employed to unveil long-term relationships and equilibrium adjustments among the considered variables. Results of our study underscore the paramount importance of efficiently managing the cost of goods sold (COGS) for achieving superior operating performance among these leading technology firms. The findings point to a nuanced interplay among these operational metrics, highlighting the interconnectedness and sustained relationships among them. This suggests that the top technology companies exhibit a sophisticated understanding of the dynamics between these variables, allowing them to navigate the complexities of the industry with strategic finesse.
... Their results also indicated that recycling efficiency positively influenced social performance. Barney (1991) "a firm is said to have a competitive advantage when employing a value-creating strategy not concurrently being employed by another firm or competitor". According to Mvubu and Naude (2016), there are typically low-profit margins of goods and services in the FMCG sector; therefore, selling large volumes to FMCG retailers can lead to competitive advantages. ...
The study examined the effect of sustainable supply chain management practices on competitive advantage of brewery companies in Anambra State, Nigeria. The cross-sectional survey research design method was adopted for the study. A sample size of 152 employees of the selected companies was randomly selected from the total population of 250 by using Krejcie and Morgan (1970) sample size determination table. The stratified random sampling technique was used for the study. The study used structured questionnaire as instrument of data collection. To validate the instrument for data collection, content validity was adopted for the study. To establish the reliability of the instrument, a test-retest method was employed. This study employed descriptive statistics and Correlation statistical technique. Findings showed that there is a strong and positive correlation between supply chain collaboration (r = 0.537, p < 0.01), corporate social responsibility (r = 0.325, p < 0.01) supply chain transparency (r = 0.573, p < 0.01), reverse logistics (r = 0.554, p < 0.01) and competitive advantage of brewery companies in Anambra State, Nigeria. The study concluded that sustainable supply chain management practice has significant relationship with competitive advantage of brewery companies in Anambra State, Nigeria. The study recommended amongst others, that sampled companies should evolve tracking systems to track products throughout the supply chain, providing visibility into the origin, movement, and handling of goods. This enables better quality control, regulatory compliance, and identification of potential risks and remediation.
... The Human Competency (e.g. Dierickx & Cool, 1989; Barney, 1991;Amit & Schoemaker, 1993;Peteraf, 1993;Ahuja & Katila, 2004;Acedo et al., 2006) suggests that a firm's heterogeneity underlies competitiveness and that resources form the basis for differential company performance. As stated previously, a lot of attention has been given to the importance of firm's intangible resources (Itami, 1987;Løwendahl, 1992;1997 In the existing methods of financial valuation such as discounted cash flow or net present value method, there are more estimates than reality. ...
This article advocates for valuing human competence alongside traditional financial assets, particularly in Professional Service Firms (PSFs). It proposes a method that emphasizes realism, simplicity, and a focus on human resources. Through a mixed-methods approach involving a literature review, case studies, and surveys, the article demonstrates the potential of human competence valuation to uncover the true drivers of organizational success. While facing challenges such as time consumption and biases, this approach offers valuable insights into employee performance and organizational value, paving the way for a culture of competence-driven performance.
... One theory that can help explain the financial constraints is the Resource-Based View (RBV) of the firm. According to the RBV, a firm's competitive advantage is derived from its unique and valuable resources (Barney, 1991). In the context of sustainability strategies, financial resources play a crucial role in the implementation of environmentally friendly practices and technologies. ...
This article examines the implementation of Environmental Sustainability (ES) strategies in the Sri Lankan hotel industry, with a focus on the role of change champions. The study adapts a social constructionist approach and utilizes in-depth interviews and observations as research tools. Drawing on organizational change management theories, stakeholder theory, and the resource-based view, the research explores the purpose, constraints, change management, and contribution aspects of implementing environmental sustainability strategies in the hotel industry. The findings reveal the significance of change champions in facilitating the implementation of environmental sustainability strategies. Developing a culture for environmental sustainability, establishing effective communication channels, promoting ethical values, and implementing Environmental, Social, and Governance (ESG) frameworks were identified as key roles of change champions. The study also identifies financial limitations, waste management challenges, leadership commitment, human capital development, and organizational behaviour as constraints for the implementation of environmental sustainability strategies. This study provides valuable insights for the hotel industry in formulating change management capabilities and leveraging change champions to achieve environmental sustainability goals. It contributes to the existing literature by discussing various types of environmental sustainability initiatives adapted by star-class hotels and addressing the challenges faced during their implementation. Additionally, the study offers guidance on implementing and managing an environmental sustainability governance framework (ESG) in the Sri Lankan hotel industry. The findings of this study can be utilized by hoteliers and other stakeholders in the industry to successfully implement environmental sustainability strategies and achieve strategic environmental sustainability objectives. By understanding the roles of change champions and addressing the identified constraints, hotels can enhance their environmental sustainability performance and contribute to a more sustainable future.
... Although statistically insignificant, higher beta risk may result in lower firm performance. According to the resource-based view (RBV) (Barney, 1991), larger firms have more abundant financial, informational, relational, organizational, legal, and human resources, and thus are more capable of creating and sustaining rare, valuable, and hard-toimitate competitive advantage. Arrow (1962) stated that smaller firms are less likely to embrace innovation due to the lack of financial resources, inability to protect the property rights, and high risk of failure. ...
We apply the vector autoregression with exogenous variables (VARX) approach to integrate the optimal contracting theory, the managerial entrenchment theory, the principal-agent theory, the contextual criteria theory, and the upper echelon theory. Based on this new approach, we discover two middle ground conditions between the boundary of managerial entrenchment and optimal contracting, where CEO non-entrenchment or entrenchment cannot be explained by the managerial entrenchment theory or optimal contracting theory alone. For example, some CEOs are not entrenched when the agency problem is not mitigated, while others are entrenched when the agency problem is mitigated. The results imply that merely mitigating the agency problem cannot prevent managerial entrenchment. However, not mitigating the agency problem at all leads to managerial entrenchment. We recommend the boards look at other non-financial means and social approaches (e.g., value- and culture-based trainings, performance recognition, goodwill and friendship building events, pay transparency increase, smooth flow of information among stakeholders, value-adding managerial investments, oversight committee) to minimize the impact of managerial entrenchment on both firm performance and CEO compensation. In addition, we recommend the boards take on the approaches unique to their own firms and their CEOs to address managerial entrenchment.
... Authors have implemented knowledge-based view theory promoted by Barney (1991) which is also an innovative concept to be introduced in the healthcare sector in present context. According to the Central Government Health Scheme (CGHS), a total of 213 hospitals exist in the major cities of NCR along with the national capital. ...
Knowledge sharing is the fundamental measure through which knowledge workers can significantly contribute to innovation and eventually the competitive advantage of the organization. Drawing upon the knowledge-based view of firms, the present study aims to examine the moderating role of knowledge sharing on the relationship between HRM practices and knowledge workers’ retention in the healthcare sector. After the COVID impact, healthcare knowledge workers have become a point for wide scholarly discussion and appropriate HRM practices should be implemented to amplify their probability of a longer stay in the organization. Hence, this research has incorporated PLS-SEM for empirical investigation which is based on prior discussions with some healthcare experts. The results propagate that knowledge sharing moderates HRM practices-retention linkage except training and development which is found to be statistically insignificant. The empirical evidence generated could be crucial for researchers and practitioners within the healthcare sector, thereby, extending assistance in establishing world-wide recognition.
... The study on the moderating effect of firm characteristics, particularly system-thinking competency, on the economic performance of startups in Lagos can be underpinned by the Resource-Based View (RBV) framework. The RBV, as proposed by Barney (1991), offers a valuable theoretical lens for examining the relationship between resources, competencies, and firm performance. The RBV posits that a firm's competitive advantage and performance can be attributed to its unique bundle of resources, both tangible and intangible. ...
This study explores the intricate relationship between system-thinking competency, firm age, and economic performance in startups situated in Lagos, Nigeria. Drawing on a sample of 218 startups in Lagos, we investigate the extent to which system-thinking competency influences economic performance and how firm age moderates this relationship. The empirical analysis employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. The findings reveal that system-thinking competency has a positive and significant effect on economic performance in startups in Lagos. Moreover, firm age emerges as a crucial moderator, indicating that the influence of system-thinking competency on economic performance varies across different stages of a firm's lifecycle. These results contribute to our understanding of the dynamic interplay between entrepreneurial competencies, firm characteristics, and business performance. The study underscores the importance of fostering system-thinking skills among entrepreneurs, especially in the context of emerging markets like Lagos, and highlights the strategic implications for startup success in an increasingly complex business environment.
... Las organizaciones requieren poner en juego un conjunto de acciones coherentes, con base en sus recursos y capacidades, así como en sus oportunidades y amenazas. La teoría permite observar dos orientaciones en este sentido, por un lado, el análisis de la industria con autores emblemáticos como Porter, y por otro lado los estudios acerca de los recursos y las capacidades (Wernerfelt, 1984;Barney, 1991). Al respecto, Fong, Flores y Cardosa (2017) señalan: ...
La editorial partiendo de tres argumentos, valora la importancia de realizar hoy en día estudios posgraduales en gestión del talento humano, en razón a que la Facultad de Ciencias Económicas y Administrativas pondrá en funcionamiento una línea en este campo a partir del 2024.
... Several studies have investigated critical factors contributing to a business's success in achieving sustainable growth. Four key indices-namely, advantage value, rarity, inimitability, and substitutability-have been identified, highlighting that strategic resources play a pivotal role in driving sustainable development (Barney 1991). Furthermore, drawing upon the resource-based view (RBV) theory, we have identified four facets of IT that can enhance a company's potential for sustainable development: investment (capital), unique technology, technical IT knowledge, and managerial IT competence (Mata et al. 1995). ...
... Reflecting later on, there was a recognition that the researcher had an underlying awareness of elements of network and resource theory which could only provide limited explanations for the difficulties the born global firm ownermanagers were experiencing (0). These theories were largely confined to general awareness by the researcher of unrelated concepts, the key ones being the homophily principle derived from social network theory (Jackson, 2008), the work of Putnam (2000) on the decline of social capital in the US and the resource based view (RBV) derived from the field of strategic management (Barney, 1991). It is important to note that regarding predisposition of the researcher to theory, Peirce stipulated pure abduction starts from the facts at hand without reliance on any particular theory, it is motivated with a feeling that a theory is needed to explain surprising facts so abduction seeks theory (Reichertz, 2014). ...
This research responds to the recent call in the entrepreneurship literature to address the shortcomings arising from the application of management theories developed in the “West” to “non-Western” contexts. The International Entrepreneurship (IE) literature itself strongly suggests social capital generation is important for born global firms’ survival and growth, though understanding of how this is conducted in non-Western contexts is weak. Drawing upon and extending the social capital and legitimacy literature, this study utilises survey and in-depth interview data to further contextual knowledge about how born global firms go about generating their social capital in a booming city in south-west China, Chengdu. Born global firms have not been widely studied beyond the more developed coastal areas of PR China and with economic growth shifting towards rapidly growing interior cities such as Chengdu, this research provides new avenues to understand how born global firms can establish themselves in such different environments.
This study specifically seeks to understand how do born Chengdu based global firms earn and maintain legitimacy to establish contact with high prestige networked individuals under different socio-cultural conditions. In doing so, this research furthers the understanding of born global firms’ social capital generating behaviour outside of the more studied developed regions of China or the West. These studies have not focussed on the role of legitimacy in social capital building, which is suggested to be more relevant in regions or cities which are experiencing very rapid periods of change and economic disruption. These changes require born global firms to regularly renew their legitimacy due to the rapid disruptive pace of change.
Using a sequential explanatory design, this research collected fifty-two valid responses from owner-managers of Chengdu based born global firms. To follow up on emergent findings, eight in-depth semi-structured interviews were conducted to provide rich data on the linkages between the two most relevant dimensions of social capital (relational and cognitive) and legitimacy (cognitive and socio-political).
The findings of this research revealed that not only were strong ties vital during born global firms’ early efforts at social capital building, but an interesting finding also revealed from the qualitative rich data was the subsequent role officials and high prestige occupation holders played as these firms sought to expand their networks. Officials often served as key sponsors who facilitated access to high prestige individuals and additional scarce resources, which would hitherto remain hidden.
A conceptual typology of four firm types has been proposed based on cross case analysis of findings to demonstrate the dynamic linkages between the levels of socio-political legitimacy achieved and connections to prestigious occupation holders. This typology can be used by practitioner or academic audiences to strategically plan or understand and develop purposive social capital building strategies for born global firms. Details of an illegitimate type are also provided, illustrating where born global firms survivability could be imperilled if such strategies are ignored or neglected. This research may also be of interest to policy makers or organisations tasked with supporting born global firms such as chambers of commerce, and innovation/enterprise zones.
It should be noted this research is limited in its overall generalisability but can be applied and tested in the context of other non-Western emerging economies.
... According to Conner (1991), the differences in performance among firms can be attributed to their possession of distinct inputs and capabilities. Barney (1991) categorizes resources into three primary types: physical capital resources, human capital resources, and organizational capital resources. The Resource-Based View highlights that a company's competitive advantage comes from its internal pool of resources and capabilities. ...
This research aimed to study the causal factors affecting the business performance of private hospitals in Thailand from a management perspective. The sample consisted of 411 executives from private hospitals in Thailand, selected through purposive sampling. Data were collected via questionnaire, with SEM being used for analysis. The results indicated that the development of an enterprise resource system, including the competency and capability of entrepreneurs, positively influenced the focus on competitive differentiation. In turn, this focus had a positive effect on customer relationship management. Customer relationship management positively impacted brand loyalty, which subsequently enhanced business performance. In contrast, the competency and capability of entrepreneurs did not have an effect on business performance. The findings suggest that the growth and sustainability of business performance in private hospitals depends on various supportive factors. These range from policy formulation and the development of technological systems in services to strategies for building customer relationships, all contributing to competitive advantages, service loyalty, and success in achieving set goals.
... Moreover, the table indicates a p-value of 0.003 which is less than 0.01 implying that the association is highly significant. Subsequently, the researcher found a positive correlation between legal systems and utilization of biometrics in private banks supporting the findings by Barney and Jay (2021). -tailed) .001 ...
Purpose: The overall goal of the research was to analyze factors influencing utilization of biometrics in the private banks in Mombasa County. Methodology: The study adopted a descriptive research design because it provided a clear outcome and the characteristics associated with it at a specific point in time. The target population for the study was 120 respondents from 20 private registered banks in Mombasa County. The study adopted stratified sampling method to select the respondents from the population. The study obtained primary data through a structured questionnaire. Responses in the questionnaires were tabulated, coded and processed using a computer Statistical Package for Social Science program. The relationship between the dependent variable and the independent variables were tested using multiple linear regression models. The data was analyzed and conclusions drawn. Descriptive and inferential statistics were used whereby the data was presented through tables Findings: The findings of the study showed that legal systems holds a positive linear relationship (r=0.412; p<0.01) and significant association with utilization of biometrics in private banks. Moreover, the results indicates a p-value of 0.003 which is less than 0.01 implying that the association is highly significant. Based on the research and analysis, the study concludes that legal systems, technology maturity, demographic factors, and staff competency have a significant effect on utilization of biometrics in private banks within Mombasa County. Unique Contribution to Theory, Practice and Policy: The research was anchored on technology acceptance model. To ensure efficient utilization of biometrics within private banks in Mombasa County, it is recommended that organizations follow established legislation. Subsequently, banks should update their staff on legislation surrounding biometrics use and security.
... The resource-based view circulates an organisation's capabilities and resources to address the demands of dynamically changing environments and achieve a competitive advantage. The critical resources and capabilities of the firm can provide a sustainable competitive advantage because of their inherited attributes of being valuable, rare, inimitable, and non-substitutable (Barney, 1991;Ren et al., 2023;Mukhopadhyay et al., 2024). Being valuable refers to the ability of resources to utilise opportunities and minimise threats, while rarity is scarcity, which refers to the unequal distribution of resources across the competition (Lockett et al., 2009). ...
In the era of globalisation, the use of technology and concerns for sustainability is eminent in the supply chain management practices. The current study focuses on sustainable and green supply practices in different stages of supply chain management and how they can be facilitated by blockchain technology (BT). The study has addressed the existing gaps in the area namely, the lack of research assessing stage-wise green supply chain for environmental performance focusing on BT. The current study aims to assess the impact of BT on different stages of the green supply chain and a firm's environmental performance. The study also focuses on analyzing the impact of green supply chain stages on environmental performance. The study uses PLS-based structural equation modelling approach to investigate the hypothesised relationships between BT adoption and stage-wise green supply chain practices. The data was collected from individuals from medium-sized enterprises from the manufacturing industry in India. The findings reveal a positive association between blockchain adoption and green supply chain management practices leading to enhancement in environmental performance. Furthermore, the study indicates a positive relationship between blockchain integration and different stages of the green supply chain, underscoring its multi-faceted impact on environmental performance. The findings imply that the BT adoption can facilitate the realization of sustainable supply chain practices and performance improvement.
... Thus, the business and strategy associated with wealth creation and formation are a result of the company's resources (Hitt et al., 2001). Resources were developed to become a strategic resource by Barney in 1991, where he mentioned that the characteristics of resources are focused on value, rarity, durability, and organization through the acronym VRIO in order to develop strategic management between organizations. According to Priem and Butler (2001), the characteristics of value and rarity of resources are better associated with the efficiency and productivity of the organization, while the characteristics of durability with the organizational characteristics of resources within the company lead to a long-term competitive advantage, as the four characteristics of resources cannot provide a competitive advantage without the others. ...
En la actualidad, el mercado es altamente competitivo, por lo que las empresas buscan destacarse de sus competidores para convertirse en líderes de su sector. Para lograrlo, es esencial que las organizaciones se adapten constantemente a los cambios del mercado y las tendencias para ofrecer productos y servicios que satisfagan las necesidades de sus clientes. En este sentido, el Centro de Eventos Charly ha mantenido una posición sólida en el mercado de Ecatepec durante 37 años. Sin embargo, la falta de políticas claras, objetivos y metas ha llevado a un estancamiento que dificulta medir su progreso en los próximos años. Los problemas que enfrenta la organización son: falta de presencia en línea y la poca visibilidad en redes sociales para promocionar sus servicios y atraer a nuevos clientes, limitaciones en la infraestructura, rotación constante de trabajadores que se tiene por la falta de conocimiento y presupuesto en el área de recursos humanos tanto en el reclutamiento y selección de personal como la falta de evaluación, capacitación y desarrollo de los colaboradores. En este contexto, se realizó un diagnóstico para identificar las áreas de mejora necesarias que permitan que el negocio continúe y siga fomentando el desarrollo económico del municipio. Con lo anterior se planteó como objetivo desarrollar un plan de mejora a través de diferentes metodologías para el posicionamiento de la empresa familiar Centro de Eventos Charly. Se trabajó con la teoría basada en los recursos y las capacidades de las empresas, con un enfoque cualitativo y bajo el método descriptivo.
Investigating the correlation and nexus between staffing and employee performance. Staffing involves attracting more quality job-seekers and selecting the creme dela crème to achieve organizational competitiveness. Resource-based View Theory and the Equity Theory were adopted as frameworks. More so, the research employed a cross-section correlational method as the research design, with data analysis methods ranging from analysis of frequency to analysis of descriptive data and multiple regression analysis. The paper used a simple random sampling technique to select respondents for the research directly. As such, 374 respondents from both the academic and non-academic staff of Olabisi Onabanjo University were selected. Primary data had been collected through a questionnaire, while secondary data had been collected through a review of published literature. Data were analyzed using SPSS version 25.0. Findings revealed that all independent variables have a notable positive relationship with employee performance. The research thus recommended that other staffing practices not discussed in this research should be carried out inline with employee performance.
This study explores the integration of Human Resource Management (HR) and Corporate Governance for sustainable success in organizations. It delves into how aligning HRM practices with corporate governance principles can improve organizational performance, ethical decision-making, and long-term sustainability. By examining the interplay between HRM and corporate governance, this paper aims to provide insights into the strategic alignment necessary for achieving sustainable success in today’s dynamic business environment.
As mudanças associados a pandemia de COVID-19 aprofundaram diferenças nas relações de gênero (Estrela, 2020), tornando ainda mais necessário refletir sobre o tema. Neste artigo busca-se compreender a percepção de profissionais de RH sobre a relação entre marca empregadora e equidade de gênero. Foi realizada uma pesquisa qualitativa básica. Os resultados apontam que a marca empregadora pode se relacionar com a promoção da equidade de gênero, a partir de atributos que auxiliem ou facilitem a gestão dos papéis femininos, como a flexibilidade de horários e criação de oportunidades de carreira. Frente aos achados, são desenvolvidas recomendações práticas e de pesquisa.
The objective of the work is to contribute to a reflection on the sources of information for decision-making by managers andentrepreneurs.The information and knowledge society need a study on the challenges facing managers and entrepreneurs in the 21st century. In recent years we have seen a major transformation in the civilized world. Today are the knowledge and information that bind society and organisations, having become the information itself in an industry And it is necessary to understand the importance of sources of information, since their innocence can be compared with Madame Curie's innocence, when he manipulated uranium in her laboratory, unaware of the dangers to which he was exposed, eventually paying this scientific innocence with his own life. In the handling of information sources and need to move from innocence to knowledge, so that managers / decision makers can have a scientific understanding of the sources of information for decision making and that they can manage them.
The literature on strategy formation is in large part theoretical but not empirical, and the usual definition of "strategy" encourages the notion that strategies, as we recognize them ex post facto, are deliberate plans conceived in advance of the making of specific decisions. By defining a strategy as "a pattern in a stream of decisions," we are able to research strategy formation in a broad descriptive context. Specifically, we can study both strategies that were intended and those that were, realized .despite intentions. A research program suggested by this definition is outlined, and two of the completed studies are then reviewed--the strategies of Volkswagenwerk from 1934 to 1974 and of the United States government in Vietnam from 1950 to 1973. Some general conclusions suggested by these studies are then presented in terms of three central themes: that strategy formation can fruitfully be viewed as the interplay between a dynamic environment and bureaucratic momentum, with leadership mediating between the two forces; that strategy formation over time appears to follow some important patterns in organizations, notably life cycles and distinct change-continuity cycles within these; and that the study of the interplay between intended and realized strategies may lead us to the heart of this, complex organizational process.
The article explains a concept strategic group, who appears to be a supply side concept in that it seeks to identify grouping or structures within industries, but it is a fact based on the observed a similarity of behaviour of firms. The stragic choices on which they are based are essentially long-term in nature and costly to reserve, and result in relatively tightly drawn group structures whithin the more loosely drawn industry structure of conventional theory. The strategic groups offers a distintive slant on the identifications of relative competitive position and suggest a systematic and comprhensive way of conducting a stregths and weaknesses analysis in terms of framework of relative competitive adventage
The potential of post-contractural apportunistic behavior for improving market efficiency through intrafirm rather than interfirm transactions is examined under the assumption that vertical costs will increase less than contracting costs as specialized assets and appropriable quasi rents increase. Vertical integration protects against the risk of contract cancellation and can create market power which is not generally referred to as monopoly. Contracts used as a alternative provide economically enforceable protection against opportunistic behavior. Solutions to opportunistic behavior problems can include joint ownership of common assets and condominium ownership of services. Economies of scale are major factors in some businesses, such as insurance. The complexities of ownership relations makes it difficult to assign higher costs to either the contract or vertical-integration approach. This suggests that economic analysis should be used to identify which is most advantageous for specific kinds of activities.
A review of research from organizational behavior supported the guidelines by corporate planners: that is, use an explicit approach for setting objectives, generating strategies, evaluating strategies, monitoring results, and obtaining commitment. To determine whether these findings could be applied to strategic decision making in organizations, a review was made of all published field research on the evaluation of formal planning. Formal planning was superior in 10 of the 15 comparisons drawn from 12 studies, while informal planning was superior in only two comparisons. Although this research did not provide sufficient information on the use of various aspects of the planning process, mild support was provided for having participation by stakeholders. Formal planning tended to be more useful where large changes were involved, but, beyond that, little information was available to suggest when formal planning is most valuable. Future research should assess the formal planning process, t...
This article addresses the issues of competitive advantage and competitor imitation. It is argued that tacitness, complexity, and specificity in a firm's skills and resources can generate causal ambiguity in competency-based advantage, and thus raise barriers to imitation. Reinvestment in causally ambiguous competencies is necessary to protect the advantage. Without reinvestment, attritional effects of continued competitive action will cause decay in the barriers to imitation. From this theorizing, research propositions are suggested, which, ultimately, will lead to an improved understanding of competitive advantage sustainability.
Little systematic evidence exists on overall effects of Organization Development (OD). Thirty-five empirical studies assessing the impact of OD activities provide the basis for analysis. A typology, derived from research variables reported in the literature, is used to investigate both overall impact of OD and the differential impact of unique classes of interventions.
Donaldson's (1990) critique of organizational economics suggests four attributes of this model that make intellectual discourse and theoretical integration with traditional management theory difficult: the assumption of opportunism, different levels of analysis, the theory of motivation, and the prescriptive character of organizational economics. It is suggested that these differences are not a sufficient explanation of the response of some traditional management theorists to organizational economics. Rather than being based on these substantive differences, it is argued that the relationship between these two models has many of the attributes of an intergroup conflict. Possible responses to this intergroup conflict and the implications that these responses may have for understanding organizational phenomena are explored.
The top executive who seeks strategic success will work first and foremost at assembling a managerial team well suited to formulating and implementing strategies in the particular competitive environment faced by the firm. This article presents an analytical framework for assessing and designing top management teams. The value of the framework, illustrated in the case of an actual general manager grappling with an appraisal of his top team, lies in specifying the elements of this important process and identifying the range of issues the manager must consider.
is a measure of rationality and is defined as the extent to which organizations attempt to be exhaustive or inclusive in making and integrating strategic decisions. Results from an industry with an unstable environment indicate a consistently negative relationship between comprehensiveness andperformance. Limitations
The relationship between financial performance and characteristics of corporate planning systems was investigated/Planning systems that combined an external focus with a long-term perspective were found to be associated with superior 10-year total return to stockholders. A lagged relationship between such systems and 4-year average annual returns to investors also was identified.
The widely accepted view equates strategy making with planning, assuming that strategies are 'formulated' before they are 'implemented'. Based on the detailed tracking over time of the actions of a single project organization, strongly resemblant of an ideal type called 'adhocracy', this paper shows that strategies can 'form' in a variety of different ways: from the precedents set by individual operators, from thin streams of activity that eventually pervade an organization, from spontaneous convergence in the behavior of a variety of actors, and so on. The paper first identifies and tracks the strategies pursued by this organization across almost four decades of its history and then presents the history of the organization in terms of strategic periods. These findings are then interpreted in conceptual terms, focusing on three themes: the emergent nature of the organization's strategies and the difficulties of identifying intention in a collective context; the cycles of behavior that resulted from attempts to reconcile the concurrent needs for convergence and divergence; and the organization's quest for adhocracy and the problems this posed for the exercise of formal leadership. The paper concludes with a 'grass roots' model of strategy formation.
The need for planning in business organizations operating in today's complex environment is widely accepted. Implied is an assumption that planning improves performance. However, the empirical evidence for such a claim is thin. Since planning is an integral part of strategy formulation, the facts to confirm or refute an assumed connection between planning and performance invite attention. Our research focuses on new data from 61 companies which test this linkage and, in addition, reviews the conclusions of prior empirical studies.
This paper examines the literature on strategic groups and extends it: first, by clarifying the distinction between two alternate approaches to forming groups, emphasizing that multivariate group analysis can be used to conserve information not only summarize it as bivariate grouping does; second, by focusing attention on the importance of asymmetrical mobility barriers and competitive advantage in the process of industry consolidation and concentration; and third, by linking groups and the concept of contestability in an effort to make some progress towards explaining the evolution of industry structure.
This article surveys the theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms. Major conceptual issues are addressed, and recommendations are given for future research. Managerial implications are also discussed.
The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested. These tools are then used to highlight the new strategic options which naturally emerge from the resource perspective.
Recent evidence suggests that large multibusiness firms can enhance performance by developing and exploiting corporate level distinctive competencies. In this study of 185 industrial firms, the relationships between corporate level distinctive competencies and performance were examined across firms using different diversification strategies and having different corporate structures. The corporate level distinctive competencies/performance relationships were found to vary by type of diversification strategy but not by type of corporate structure. In addition, only a small relationship was found to exist between diversification strategy and corporate structure. The specific relationships between corporate level distinctive competencies and performance and their normative implications are explored.
The time-series behavior of ROI is examined to assess a central element of competitive markets, the lack of persistence of abnormal profits. The analysis first determines the aggregate dynamic process of ROI and then examines how strategic and market factors influence this process. Consistent with abnormal returns resulting from a disequilibrium phenomenon, a mean reverting time-series process approximates the behavior of ROI. While a variety of factors influence the persistence of return, the conditions under which market forces do not drive return back to its competitive rate seem remote, if present at all. Nonetheless, these factors can insulate a firm from competitive forces and so result in longer-term abnormal profits.
In their paper, Dierickx and Cool suggest that the strategic factor markets model developed in Barney (Barney, J. B. 1986a. Strategic factor markets: Expectations, luck, and business strategy. Management Sci. (October) 1231--1241.) cannot be applied in the analysis of sustained competitive advantages due to asset stocks accumulated over time. In this comment, it is shown that the discussion of asset stocks extends and complements, rather than limits, the strategic factor markets model. This is done by analyzing how the strategic factor markets model can be used to examine the cost of accumulating asset stocks over long periods of time, and how these costs will compare to the value of strategies that are implemented exploiting these asset stocks.
Given incomplete factor markets, appropriate time paths of flow variables must be chosen to build required stocks of assets. That is, critical resources are accumulated rather than acquired in "strategic factor markets" (Barney [Barney, J. 1986. Strategic factor markets: Expectations, luck, and business strategy. Management Sci. (October) 1231--1241.]). Sustainability of a firm's asset position hinges on how easily assets can be substituted or imitated. Imitability is linked to the characteristics of the asset accumulation process: time compression diseconomies, asset mass efficiencies, inter-connectedness, asset erosion and causal ambiguity.
Much of the current thinking about competitive strategy focuses on ways that firms can create imperfectly competitive product markets in order to obtain greater than normal economic performance. However, the economic performance of firms does not depend simply on whether or not its strategies create such markets, but also on the cost of implementing those strategies. Clearly, if the cost of strategy implementation is greater than returns obtained from creating an imperfectly competitive product market, then firms will not obtain above normal economic performance from their strategizing efforts. To help analyze the cost of implementing strategies, we introduce the concept of a strategic factor market, i.e., a market where the resources necessary to implement a strategy are acquired. If strategic factor markets are perfect, then the cost of acquiring strategic resources will approximately equal the economic value of those resources once they are used to implement product market strategies. Even if such strategies create imperfectly competitive product markets, they will not generate above normal economic performance for a firm, for their full value would have been anticipated when the resources necessary for implementation were acquired. However, strategic factor markets will be imperfectly competitive when different firms have different expectations about the future value of a strategic resource. In these settings, firms may obtain above normal economic performance from acquiring strategic resources and implementing strategies. We show that other apparent strategic factor market imperfections, including when a firm already controls all the resources needed to implement a strategy, when a firm controls unique resources, when only a small number of firms attempt to implement a strategy, and when some firms have access to lower cost capital than others, and so on, are all special cases of differences in expectations held by firms about the future value of a strategic resource. Firms can attempt to develop better expectations about the future value of strategic resources by analyzing their competitive environments or by analyzing skills and capabilities they already control. Environmental analysis cannot be expected to improve the expectations of some firms better than others, and thus cannot be a source of more accurate expectations about the future value of a strategic resource. However, analyzing a firm's skills and capabilities can be a source of more accurate expectations. Thus, from the point of view of firms seeking greater than normal economic performance, our analysis suggests that strategic choices should flow mainly from the analysis of its unique skills and capabilities, rather than from the analysis of its competitive environment.
This paper presents a model of the strategic process concerning entrepreneurial activity in large, complex organizations. Previous empirical and theoretical findings can be integrated in this new conceptual framework.
The paper makes the following key points. First, firms need both diversity and order in their strategic activities to maintain their viability. Diversity results primarily from autonomous strategic initiatives of participants at the operational level. Order results from imposing a concept of strategy on the organization. Second, managing diversity requires an experimentation-and-selection approach. Middle level managers play a crucial role in this through their support for autonomous strategic initiatives early on, by combining these with various capabilities dispersed in the firm's operating system, and by conceptualizing strategies for new areas of business. Third, top management's critical contribution consists in strategic recognition rather than planning. By allowing middle level managers to redefine the strategic context, and by being fast learners, top management can make sure that entrepreneurial activities will correspond to their strategic vision, retroactively. Fourth, strategic management at the top should be to a large extent concerned with balancing the emphasis on diversity and order over time. Top management should control the level and the rate of change rather than the specific content of entrepreneurial activity. Finally, new managerial approaches and innovative administrative arrangements are required to facilitate the collaboration between entrepreneurial participants and the organizations in which they are active.
Three attributes that a firm's culture must have to generate sustained competitive advantages are isolated. Previous findings suggest that the cultures of some firms have these attributes; thus, these cultures are a source of such advantages. The normative implications of the analysis are discussed. Firms that do not have the required cultures cannot engage in activities that will modify their cultures and generate sustained superior financial performance because their modified cultures typically will be neither rare nor imperfectly imitable. Firms that have cultures with the required attributes can obtain sustained superior financial performance from their cultures.
The conditions under which transactors can use the market (repeat-purchase) mechanism of contract enforcement are examined. Increased price is shown to be a means of assuring contractual performance. A necessary and sufficient condition for performance is the existence of price sufficiently above salvageable production costs so that the nonperforming firm loses a discounted steam of rents on future sales which is greater than the wealth increase from nonperformance. This will generally imply a market price greater than the perfectly competitive price and rationalize investments in firm-specific assets. Advertising investments thereby become a positive indicator of likely performance.
I. Interdependence and conjecture in entry, 242.—II. Barriers to mobility, 249.—III. Diversification by established firms
and intergroup mobility, 257.—IV. Conclusion, 261.
Introduction, 181. — I. A stochastic model of interfirm profitability differences, 182. — II. An example, 183. — III. Results
of tests using a simple simulation model, 186. — IV. Summary and challenge, 191.
Causal ambiguity inherent in the creation of productive processes is modeled by attaching an irreducible ex ante uncertainty to the level of firm efficiency that is achieved by sequential entrants. Without recourse to scale economies or market power, the model generates equilibria in which there are stable interfirm differences in profitability, an above-normal industry rate of return, and a lack of entry even when firms are atomistic price-takers. The free-entry equilibrium for rational noncollusive firms is characterized for atomistic firms and for firms of fixed size, and some analytic results are obtained for the more realistic case in which firms have an arbitrary cost function. Numerical results for the associations implied between concentration, industry profitability, fixed entry costs, and the dispersion of firm profitabilities are obtained for selected cases.
Path-dependent systems of the ‘autocatalytic’ or self-reinforcing type typically possess a multiplicity of possible asymptotic outcomes or structures, with early random fluctuations determining which structure is ‘selected’.We explore a wide class of such systems, which we call non-linear Polya systems, where increments to proportions or concentrations occur with probabilities that are non-linear functions of present proportions or concentrations. We show that such systems converge to outcomes (proportions or concentrations) that are represented by the stable fixed points of these functions. These limit theorems are strong laws of large numbers for path-dependent increments, and as such they generalize the standard Borel strong law for independent increments. They are powerful and easy to use.We show applications in chemical kinetics, industrial location theory and in the emergence of technological structure in the economy.
- J.A. Pearce, E.B. Freeman, R.B. Robinson
- J.B. Barney
- M. Porter