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Which Resources Matter the Most to Firm Success? An Exploratory Study of Resource-Based Theory

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Abstract

The resource-based view of the firm (RBV) is one of the most important areas of research content to emerge in the field of strategic management in the last decade. The RBV posits that a firm's success is largely driven from resources that posses certain special characteristics. However, the RBV stream tends to be dominated by conceptual discussions. Although the empirical research body is growing rapidly, most studies concentrate on isolating only a few resources—namely intangible resources—within single industry contexts to examine resource effects on firm success. To more adequately test the main prescription of the RBV, new research approaches must be considered. This study explores one such approach. Defining the firm's resource pool to include intangible and tangible assets, a series of hypotheses are posited in order to examine the relative contribution levels of various resources on firm success. The model is tested on a sample of manufacturing and services firms operating in Australia. In the main, the results are supportive of the RBV's main prescription.

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... In the last decade, the resource-based theory (RBT) of the firm has gained prominent attention in the strategic management literature as well as in economics, organisation theory, and other scientific fields (e.g., Bharadwaj, 2000;Wade and Hulland, 2004;Galbreath, 2005). RBT has its origins in 1959, when Penrose first conceptualised it in her article The Theory of the Growth of the Firm. ...
... To understand how organisations achieve sustainable competitive advantage, RBT analyses and interprets the importance of firms' resources (e.g., Barney, 1991;Wade and Hulland, 2004;Ray et al., 2005). In this context, firm resources are of strategic importance and enable an organisation to improve its efficiency and effectiveness (Barney, 1991;Bharadwaj, 2000;Galbreath, 2005). Furthermore, RBT operates under the assumptions that the resources needed to design, select, and implement business strategies are "[…] heterogeneously distributed across firms and that these firm differences are stable over time" (Barney, 1991: 99). ...
... RBT focuses on resources that cannot easily be purchased or transferred and that require superior knowledge, expertise, and major changes in the organisation in terms of processes or culture (Barney, 1991;Caldeira and Ward, 2003;Madhani, 2009). Although the term "resource" has increasingly gained in importance in the context of studies on RBT, one of the main challenges for researchers is to establish a uniform definition of the term (Wade and Hulland, 2004;Galbreath, 2005). According to Barney (1991: 101), "[…] firm resources include all assets, capabilities, organizational processes, firm attributes, information, knowledge, etc. controlled by a firm that enable the firm to conceive of and implement strategies that improve its efficiency and effectiveness." ...
... Reference [103] elucidates tangible resources to comprise property, manufacturing facilities, capital goods, equipment, bank payments, stocks, and borrowers. Tangible assets are shown in organizational balance sheets, which are measured utilizing physical or financial values [104,105]. ...
... Intangible assets are resources that include human resources; organizational image and branding; intellectual capital; and the business's reputation in terms of customer service, resources of the organization, products, and services; knowledge of technicians; policies and structures of the organization; employee confidence and experiences [100,102,105]. Intangible resources are harder to duplicate, substitute for, and trade for, by competition than tangibles [106][107][108][109]. Furthermore, [107] classifies intangibles in terms of four types of capital: organization, human resource, relationship, and technology. ...
... Despite the difficulties in distinguishing between organizational capabilities and the intangibles, references [99,105,112,113] all suggest if the intangible resources are things the organization possesses and do not depend on human resources, they are assets. If the intangibles depend on human resources, they are capabilities or skills. ...
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The fourth industrial revolution (4IR) may fundamentally alter, not only the way people work but also, how Small and Medium (SME) manufacturing businesses operate. In the manufacturing sector, the 4IR may change the design; manufacturing; operations; services, products, and production systems; connectivity; and the interaction among parts, machines, and people. While the 4IR technologies may have many benefits, owing to innovation and technological progress, the manufacturing SMEs require their challenges to be addressed before they may benefit from 4IR technologies. To the best of the knowledge of the researchers, there is no conceptual 4IR manufacturing framework, specifically for a developing economy, which is necessary for addressing these challenges and the opportunities promised by the new industry. This research, therefore, intends to fill this gap by developing a conceptual 4IR framework to assist South African manufacturing SMEs in addressing some of these challenges. Following a comprehensive literature review, components of the 4IR and challenges in the manufacturing industry are elucidated, aimed at defining a set of qualitative propositions as our instrument to develop a conceptual framework for embedding 4IR technologies and opportunities in the manufacturing industry. Further aspects of the framework enable businesses to gain a competitive advantage and sustainable business performance. Future work in this area will validate the framework among stakeholders in the manufacturing industry within the context of a developing economy.
... Initially, analyzing tangible practices, i.e., involving physical and financial resources (Galbreath, 2005;Greco et al., 2013), it was possible to note that the sharing machinery mainly comprises items destined to production and storage: "We have a group of five people in the family where we share everything we have, from machinery to equipment, such as the tractor, chainsaw, and milk tank, to others household items.". In addition to the machinery, the sharing of manual equipment, such as tools, was found together, as can be seen in the following statement: "The tools for maintaining everything needed in the settlements are shared. ...
... Considering more than tangible practices, there is also evidence of intangible sharing practices, that is, involving knowledge, skills, and responsibilities (Galbreath, 2005;Greco et al., 2013). Recurring initiatives were found in the skills and knowledge sharing settlements. ...
Article
Agri-food systems are in constant movement, constituted by practices that are shared by actors; however, in a context where new practices are established by the sharing economy, it is necessary to understand them. Thus, this article identifies and describes the sharing economy practices adopted by agri-food rural settlements. Using as basis a systematic review and a multiple case study, the literature revealed 11 practices although the multiple case studies just did not find the practice of housing sharing in the settlements; on the other hand, uncover a new practice, labor sharing, that was not yet mentioned in the literature. This study reveals that the sharing economy practices in agri-food production are strongly linked by the integration of resources and this reality generates the interdependence and interdefinition of the actors in rural settlements.
... Los recursos pueden ser activos o capacidades: los activos -que pueden ser tangibles o intangibles-son poseídos y controlados por la empresa; las capacidades son conjuntos intangibles de habilidades y conocimientos acumulados que se utilizan mediante rutinas organizativas (Teece et al., 1997). Se considera que las capacidades son la fuente principal de ventaja competitiva de la empresa (Galbreath, 2005). El enfoque de recursos y capacidades (Teece et al., 1997) predice que un elemento fundamental de la capacidad de la empresa reside en su habilidad para desarrollar y reconfigurar las competencias internas y externas que permitan responder a los cambios del entorno (Wu, 2010). ...
... Sin embargo, también se puede argumentar que los nuevos empleados necesitan tiempo para aprender las habilidades del negocio, así como la forma de funcionar o de realizar las tareas en la nueva empresa o en el nuevo puesto, presentando a la vez una falta de motivación y de implicación, que se traduce en una baja productividad y en una alta rotación. Por tanto, los empleados con contratos temporales a corto plazo pueden contribuir a reducir los costes laborales, pero también pueden influir negativamente en los resultados, ya que el compromiso organizativo en este grupo de empleados suele ser menor (Michie y Sheehan, 2003, 2005Posthuma et al., 2005;Buonocore, 2010). ...
Article
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Resumen.- Este trabajo analiza –en una muestra de 156 empresas españolas de distintos sectores– el efecto mo-derador que ejerce el dinamismo del entorno y la cooperación externa de la empresa en la relación entre la flexibili-dad de los recursos humanos –funcional interna (polivalencia de los empleados) y numérica externa (empleo tem-poral)– y las distintas dimensiones de los resultados de la empresa, profundizando previamente en la relación que existe entre los distintos tipos de flexibilidad de los recursos humanos y los resultados de la empresa considerados de forma conjunta. El estudio pone de manifiesto que la flexibilidad interna –funcional y numérica– está positiva-mente relacionada con los resultados de la empresa, mientras que la flexibilidad numérica externa presenta una re-lación negativa. Los datos obtenidos también indican que el dinamismo del entorno modera negativamente la rela-ción entre la flexibilidad numérica externa y el resultado financiero. Por su parte, la cooperación externa de la em-presa modera positivamente la relación entre la flexibilidad funcional interna y el resultado financiero, y negativa-mente la relación entre la flexibilidad numérica externa y el resultado empresarial, con independencia de la dimen-sión considerada. Abstract.- This paper analyses the moderator effect of environmental dynamism and inter-organization cooperation in the relationship between human resource flexibility and several dimensions of firm performance. Previously, we study the interrelationship between different dimensions of human resource flexibility and firm performance. We test our research model in a sample of 156 Spanish firms. The results indicate that internal human resource flexibility, specifically functional and numerical dimensions, is positively related to firm performance whereas external numeri-cal flexibility is negatively related to firm performance. We also found that environmental dynamism moderates ne-gatively the relationship between temporary employment and financial performance. Regarding inter-organizational cooperation, it moderates positively the relationship of functional flexibility and financial performance, and negatively the relationship between temporary employment and all the dimensions of firm performance.
... This is made up of a set of business procedures and routines that control how a company's resources interact [57]. There are three sorts of skills, according to prior empirical studies: particular or individual skills, processes, and organizational capacities [58,59]. According to contemporary studies, distinguished capabilities can be classified as either dynamic or operational [56]. ...
... Strategic leaders must, in particular, utilize and sustain the organization's fundamental strengths, as well as build and retain the company's human and social capital [66]. Managing human and social capital is at the heart of strategic leadership [58]. Furthermore, McCallum and O'Connell [73] noted that human capital and social capital are not mutually exclusive. ...
Article
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In recent decades, particularly during the outbreak of COVID-19, businesses organizations have focused on knowledge management processes in order to attain a sustainable competitive advantage by creating human and social capital as strategic leadership capabilities. This paper aims to develop an integrated conceptual and theoretical framework that connects strategic leadership capabilities, knowledge management processes, and sustainable competitive advantage for the public and private organizations within the service industry. The model approach has been used to build a theoretical framework that predicts the relationships between the variables. To support the link between them, a systematic literature review of traditional and contemporary theoretical and empirical research studies is conducted. Through the combination of the related literature, propositions are established. This conceptual research is primarily comprised of a model and assertions concerning strategic leadership capabilities, knowledge management processes, and sustainable competitive advantage. The outcomes of this study reflect that strategic leadership capabilities can accomplish sustainable competitive advantage. They also have the greatest potential to impact sustainable competitive advantage via engaging the knowledge management processes. Particularly, there are significant implications of this study. Regarding the theoretical implication, it contributes to the resource-based view, knowledge-based view, and knowledge creation theory in supporting strategic leadership capabilities, knowledge management processes, and sustainable competitive advantage. To the practical implication, the study linked the concepts of research variables for public and private enterprises within the service industry. It can also enable strategic leaders and businesses owners to participate in real-time opportunities and determine threats for achieving a sustainable competitive advantage in light of the COVID-19 pandemic. This is a preliminary study of the sustainable competitive advantage literature that includes the concept of strategic leadership as a knowledge management processes enabler for achieving a sustainable competitive advantage. Until now, there has not been any work like it in the literature, save in the qualitative style.
... One approach is to seek competitive advantages inside the organization, particularly in its internal resources (Fraczkiewicz-Wronka & Szymaniec, 2012). The term resource-based view (RBV) was first coined by Wernerfelt (1984), who contends that a firm's resources comprise tangible and intangible assets (Galbreath, 2005;Wernerfelt, 1984) ii . RBV theory focuses on the resources owned by firms (Fraczkiewicz-Wronka & Szymaniec, 2012) and is most relevant when studying firms' resources (Frynas & Yamahaki, 2016). ...
... The resource-based view (RBV) suggests that firms' competitive advantages and superior performance are closely related to their internal resources and capabilities (Barney 1991;Peteraf & Bergen, 2003). Therefore, the importance of board diversity can be highlighted through the theoretical lens of resource-based view (RBV) theory (Barney, 1991;Galbreath, 2005;Yu & Choi, 2016), whereby as a part of firms' strategic decisions, board diversity improves core organizational competencies (Hamel & Prahared, 1994) and dynamic internal capability (Teece, Pisano, Shuen, 1997), thereby increasing overall firm capability (Katmon et al., 2019). Diversity includes attributes such as age, ethnicity, cultural diversity, and religion (Jonson, McGuire, Rasel, &Cooper, 2020), gender, education, skill, expertise, andvarious preferences (political andsexual preference), etc. (Ayuso &Argandona, 2007;Hassan et al., 2020). ...
Article
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Purpose: This study aims to examine the influence of board diversity on the quality of CSR disclosure (QCSR) and propose that this relationship is patterned differently in different contexts and nations, due to their distinctive characteristics. Design/methodology/approach: The resource-based view (RBV) theory is used to evaluate the hypothesized relationship through an empirical investigation of 64 Pakistani financial firms, by applying a random-effects regression and the generalized method of moments (GMM).] Findings: The findings indicate that age, gender, educational level, and educational background diversities positively influence QCSR disclosure. However, nationality, ethnic, and tenure diversities have no significant relationship with QCSR disclosure. The results were further checked by a robust regression and sensitivity analysis. Originality/value: Using RBV theory, this paper provides an additional contribution concerning the role played by board diversity in a firm’s strategic performance, particularly CSR disclosure. The article contributes to the literature by finding that there is no unanimous rule for board diversity supporting CSR, due to the unique characteristics of different jurisdictions and institutional contexts.
... The resource-Based theory is the theory on which this study and its hypotheses build (Galbreath, 2005;Wernerfelt, 1984). The well-known paradigm in the field of entrepreneurship and strategic management is Resource-Based Theory (Abdalla & Mohamed, 2020; Hitt, Xu. & Carnes, 2016). ...
... The well-known paradigm in the field of entrepreneurship and strategic management is Resource-Based Theory (Abdalla & Mohamed, 2020; Hitt, Xu. & Carnes, 2016). The Resource-Based Theory put forward that organizations that make an effort to ensure uniqueness from competitors, gain competitive advantage and high performance (Hitt et al., 2016;Galbreath, 2005). Consequently, Resource-Based Theory believed that businesses that put into practice a value-creating strategy, such as entrepreneurship orientation and corporate entrepreneurship gain ample competitive advantage and high performance over other competitors. ...
Article
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Industries with high innovative behavior have a greater chance to stand competitive and gain superior performance. Therefore, this study aims to examine the effect of entrepreneurship orientation on performance firm and innovation as a mediator between entrepreneurial orientation and firm performance in the manufacturing industry in NorthEast Nigeria. A Survey of 194 employees of the manufacturing industry in the Northeast was used for the study. A questionnaire instrument was used for data collection. A quantitative method of data analysis was applied using Partial Least Square Structural Equation Modelling (PLS-SEM) Techniques. The findings of this study reveal that entrepreneurship orientation positively and significantly affects performance firm, entrepreneurship orientation positively and significantly affects innovation, innovation negatively and insignificantly affects performance firm. Moreover, negative and insignificant effect mediating effects of innovation on the relationship between entrepreneurial orientation and firm performance were recorded. The study recommended the manufacturing industry in Northeastern Nigeria should effectively address the issue of innovativeness of products and services for better organizational performance.
... Compared to tangible assets intangibles contribute significantly more to firm's success (Galbreath, 2005) as they have more potential for creation of firm's sustainable competitive advantage and to enable the firm to sustain higher levels of profit (Bowmana and Toms,7 Among the reasons why resorces and competences might be difficult to imitate we can find: complexity of core competences because of the ability of company to internaly and externaly link activities and processes in such a way that they deliver value to the customer; path dependency of competence development, which are culturally embedded; causal ambiguity where competitors cannot comprehend the significance of firm's characteristics that may be based on tacit knowledge or the linkage of processes and activities that create core competences (Foundations of strategic capability, 2015). 2010). ...
... Namely by developing corporate image high performing companies also send signals about their key characteristics, future actions and behaviour. They inform external stakeholders about the firm's trustworthiness, credibility and quality (Galbreath, 2005) and shape the response of customers, suppliers and competitors (Teece, Pisano and Shuen, 1997). Schwaiger (2004) displays many positive effects of strong corporate image which helps firms in acquiring and retention of best employees and customers because of increased confidence in their products and services. ...
... level of education, previous work experience, and age; marketing capability; and network capability) affect business success and variations in their performance (Wernerfelt 1984;Galbreath 2005). Resources, in this context, are defined as "stocks of available factors that are owned or controlled by the firm" (Amit and Schoemaker 1993, p. 35). ...
... An institute which embodies innovation culture would promote its staffs to become more creative, innovative and attentive in the steering of the organisation (Skerlavaj et al., 2010). According to Galbreath (2005), resources can be either tangible or intangible resources, typically financial and physical assets trailed by capabilities and skills. With a culture of innovation in the firm, leaders and employees would cultivate more innovative skills, which would lead to improved performance. ...
... Les ressources sont généralement définies comme étant l'ensemble des moyens internes à l'entreprise susceptibles d'accroître sa performance (R. Amit et P.J. Schoemaker, 1993 ;J. Galbreath, 2005). Elles se définissent aussi par une énumération des moyens qui sont à la disposition de l'entrepreneur et qui sont susceptibles de participer à la création de valeur pour son entreprise. Dans le processus de la création d'une entreprise, l'entrepreneur mobilise principalement trois catégories de ressources : son capital humain, social e ...
Article
L’objectif de cet article est d’étudier les raisons pour lesquelles certains entrepreneurs persistent à maintenir en vie leur entreprise malgré sa défaillance au prisme de la discrepancy theory. À cette fin, nous proposons un modèle de recherche mettant en évidence les déterminants directs et indirects de la persistance entrepreneuriale. Testé sur un échantillon de 100 entrepreneurs en situation d’échec, les résultats montrent que dans le contexte spécifique de l’échec entrepreneurial, la performance des nouvelles entreprises n’est pas le meilleur prédicteur de la persistance. C’est la satisfaction de l’entrepreneur mesurée en termes d’écart perçu entre ses réalisations (ce qu’il est aujourd’hui) et ses attentes (ce qu’il voulait être au moment de la création de son entreprise) qui explique le mieux sa persistance face à l’échec. Nos résultats montrent également que l’hostilité perçue de l’environnement et la motivation de l’entrepreneur ont une influence significative sur la persistance entrepreneuriale à travers une médiation de sa satisfaction. Les ressources mobilisées ont également une influence indirecte sur sa persistance via la double médiation de la performance de son entreprise et de sa satisfaction personnelle. Les implications théoriques et pratiques, les limites ainsi que les perspectives futures de recherche seront par ailleurs discutées.
... The organizations' performance differs due to their distinctive capabilities and resource management abilities (Wernerfelt, 1984). RBV posits that organizations should best use their resources and exchange views to improve their B2B relationship (Galbreath, 2005). Exchange of views, expertise, and experience among employees of different organizations involved in B2B relationships will help to strengthen their relationship further (Crick & Crick, 2020). ...
Article
Organizations have cultural-cognitive and regulative as well as normative elements that impact their employees. Organizations, by definition, cannot achieve a pure, stable state and always go through various change processes, both incremental and radical changes. Moving from legacy business-to-business (B2B) relationship management to an artificial intelligence-based customer relationship management (AI-CRM) is a gradual but paradigm change. AI-CRM leverages intelligent systems to automate the B2B relationship activities where the decision can be taken automatically without any human intervention. Relationship management in the B2B segment is considered a strategic activity of an organization. Moving from legacy to AI-CRM to facilitate B2B relationship management activities is an important decision, and proper implementation of AI-CRM is a critical success parameter for an organization. This study combines institutional theory and the resource-based view (RBV) in B2B relationship management to understand how AI-CRM could impact the firm's performance with varied firm size, firm age, and industry type.
... The potential economic success associated with these new opportunities would create jobs and help to increase prosperity (IEA 2017). The great economic potential is particularly evident in the context of the resource-based view (RBV), which implies that successful economic development depends on both specific skills and resources (Hunt 1997;Galbreath 2005). Above all, this means that sustainable entrepreneurship requires identifying and using resources and investing in their future (Banabo et al. 2011). ...
Article
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Electricity is an indispensable building block for sustainable development. As national and international electrification measures in rural areas of Tanzania are progressing slowly, a solar-powered mini-grid system with second-life battery storage was commissioned on an island in Lake Victoria in 2019 to support local development. This article evaluates the socio-economic impacts associated with electrification through this system. On average, 42.31 kWh of electricity could be provided per day. The daily demand of the main infrastructure (hospital and school) was 18.75 kWh on average. The remaining capacity thus offers enough potential to supply private households and possible economic activities. In order to evaluate the impact of electrification, a qualitative survey was conducted on site 12 months after commissioning, with 7% of the people living there being interviewed. Language barriers as well as intercultural hurdles made the survey difficult and required an adaptation of the on-site implementation. The focus of the survey was on the areas of health, education and economics. The study revealed that the availability of electricity has enormous potential to improve people's living conditions. Initial successes could be seen, especially in the areas of health care and the economic sector. So far, electrification has had no influence on the area of education. While the connections for the main infrastructure have been institutionally supported, the system-related electricity price of €1.30/kWh has proven to be a major obstacle for private households. This is far too high for widespread use compared to incomes. The article thus focuses on the observation that full socio-economic development through electrification can only succeed if local people can afford it. Possibilities to solve this problem are analysed. Since the energy is generated on the basis of renewable resources, the analysis focuses on the use of mechanisms of the emissions trading system (ETS). The aim is to generate revenue through the sale of certified emission reductions (CERs) for the saved CO 2 emissions and thus reduce the electricity price. A reference scenario of conventional energy production forms the basis for discussion of the effectiveness of the Clean Development Mechanism (CDM) and the Carbon Initiative for Development (Ci-Dev). In addition, the approach of a monthly free quota of electricity, the free basic electricity initiative (FBE), is included in the evaluation. Graphical abstract
... Internal resources of a firm can be classified as human capital, physical capital and organisational capital (Barney, 1991). Another classification divides them into tangible and intangible assets (Galbreath, 2005;Essel et al., 2019). Within tangible assets the following are mentioned: human capital, financial capital and technological capital. ...
Article
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Research background: The theoretical basis of the study derives from the assumptions of international entrepreneurship combining theories of entrepreneurship and theories of international business. The identification of entrepreneurship determinants and attributes was based on the economic, socio-cultural, as well as psychological approach to entrepreneurship. Purpose of the article: The aim of the article is to verify how demographic and basic traits of an entrepreneur affect the pace of the internationalization of firms from Poland. Methods: The study was based on CATI method. The article uses data collected on the basis of a study conducted on a sample of 355 companies from Poland. The research methods applied are a critical analysis of prior research, which allowed to identify the research gap and develop research hypotheses. In the empirical part, statistical methods were applied, including descriptive statistics and multidimensional regression. Findings & value added: The logistic regression estimation allows to confirm three hypotheses. With the age of the entrepreneur, the pace of internationalization of the firm increases. The pace of internationalization of the firm increases with the level of education of the entrepreneur. The fact that an entrepreneur belongs to a national minority increases the pace of the internationaliza-Oeconomia Copernicana, 12(2), 399-424 400 tion of the firm. Results of two-sample t-test confirm that firms whose entrepreneurs have higher entrepreneurial competences internationalize faster and earlier. The added value of the article is the combination of socio-demographic and psycho-cognitive characteristics of the entrepreneur with internationalisation. Applying this approach to a sample of firms from Poland (CEE market) contributes to research on international entrepreneurship in a thematic and geographical sense. The results of the study are of an applied nature. They can be addressed to many recipients: entrepreneurs , policymakers, educators, entities responsible for shaping and promoting entrepreneur-ship on both the micro and macro levels.
... The agency theory requires the accountability of the agent to the principal (Kunst & Beugelsdijk, 2018;Serapicos et al., 2019), and the resource-based theory (Galbreath, 2005) stipulates that the tangible and intangible resources of an organization has an impact on its performance. In other words, the investment of government on police through taxpayers' fund need to be justified by providing adequate security for the lives and property of the citizens. ...
... Inquiries should concentrate on establishing the relationship of TQM and performance of the pharmaceutical industries since performance of such companies are critical to the quality of the product and poor performance can put the patient at risk. Since, success or failure of a firm depends on its performance (Aquilani et al., 2017;Galbreath, 2005), it needs to be established whether efforts made for the improvement of quality in the pharmaceutical industries are effective for performance as well. However, to the best of understanding, no studies exist that have focused solely on the pharmaceutical industry of Pakistan. ...
... The empirical study of Galbreath (2005) defined resources as a firm specific factor that has potential to contribute to various benefits, such as performance. The RBV theory holds that performance is driven by internal, not external factors and describes firms as bundles of tangible and intangible resources, while strategy selection is based on the careful evaluation of these resources (Barney, 1991). ...
... H. Tang et al., 2014). It makes clear that capabilities rely on resources and resources can add to economic performance (Galbreath, 2005;Subramanian et al., 2016;Weerawardena & Mavondo, 2011). ...
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Based on service dominant logic (SDL) and resource-based view (RBV), this study investigates the impact of service innovation-underlying dimensions, namely, technological innovation, organizational innovation and human capital innovation on market performance and employee productivity in the hospitality industry. The study also validates and confirms the multidimensionality of service innovation in the hospitality industry. Perceptions of 400 hotel managers were used to explore the relationship. Exploratory factor analysis and confirmatory factor analysis followed by structured equation modeling were employed to examine the data. The empirical results indicate that the three-dimensional model provides a solid foundation and accomplishes an excellent fit for data. Empirical results suggest that service innovation has an influential impact on market performance. Similarly, results demonstrate that service innovation has a positive influence on employee productivity. These findings offer insight into dimensionality and consequences of service innovation for academic research and bring value to service contexts particularly hospitality.
... For instance, advertising marketing knowledge grants an organization's success in selling products and services (Morgan et al., 2009). Other researchers have also found and described that knowledge and expertise are the keys that lead to one business (Galbreath, 2005). Lastly, relatively one-third of businesses have planned to use external agencies and experts to help them with their search engine advertising campaigns (Halloy et al., 2007); moreover, external experts using support intention behavior to practice search engine advertising (Karjaluoto & Leinonen, 2009). ...
Article
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The digital transformation age has changed the way businesses advertise. Digital advertising means have gradually replaced traditional advertising means such as newspapers and magazines. Search engines, such as Google, have contributed to a competitive advantage for businesses that use this advertising channel. This study aimed to expand the Theory of Planned Behavior (TPB) with businesses' self-efficacy towards google advertising services. A mixed research method was carried out, of which 633 firms were surveyed. The research results have confirmed the results of the TPB model in the field of B2B marketing; at the same time, self-efficacy is also assessed as a second-order concept consisting of four dimensions, i.e., ability to manage keywords/bids, ability to monitor outcomes, advertising expertise, external experts using. The study also proposed some theoretical and managerial implications for business for the advertising services provided by Google.
... Each mosque has a variety of different resources. Resources are classified into tangible resources and intangible resources (Galbreath, 2005). Tangible resources include financial assets and physical assets. ...
Article
The main objective of this research is to find the performance measurement model of mosques in Ngaliyan District. The performance measurement model is adopted from the performance measurement model for organizations profit. This study uses mosque resources, management processes, and mosque performance as research variables. Mosque resources are grouped into mosque management resources (ta'mir), financial resources, and mosque facilities. Process management consists of stewardship management, financial management, and planning management. while the mosque's performance is shown through the implementation of religious activities and religious social services. The survey is limited to jami’ mosques in Ngaliyan District which are listed in SIMAS-Kemenag RI (Mosque Information System of Ministry of Religious Affairs of Republic of Indonesia) 2019. By purposive sampling, there are 36 valid samples for the analysis. Path analysis was applied to analyse the data. The results of this research using quantitative method showed that were significant influences between resource and mosque performance with management processes as the mediating variables. The findings from this study will be useful for mosque stakeholders such as mosque administrators, donors, congregations, and religious authorities who are directly affected by mosque performance.
... Galende (2006) described that resource-based theory is a critical era on technology innovation management. Galbreath (2005) discussed the significance of resource based theory for the firm and analyzed the impact of available resource on firm success. About this, Hauknes (1999) also verified about the prominence of the resource based theory in perspective of understanding innovation. ...
Article
Intellectual capital (IC), which is frequently associated with firm performance, is an organizational intangible asset, and is categorized into five core components: financial capital, customer capital, process capital, innovation capital and human capital. By Resource-Based View of the firm, this paper aims to study the net effect of intellectual capital on performance. The research focuses on a panel data for a sample of other than financial or services sector from diverse industries listed in Pakistan Stock Exchange (PSX) for 5 years. Results indicate the significant information of Intellectual Capitals (ICs) and Financial Capital (FC) with Financial Performance (FP). Customer Capital (CC), Process Capital (PC), Innovation Capital (InC) and Human Capital (HC) have significant relationship with financial performance. The study contributes towards the comprehension of the complexity embodied in the Check relation strategy firm decision, IC and firm performance. This paper answers the call to explore new causal relations that influence firm performance that can therefore help managers to adopt the best decision-making strategies, and to shed light on the inconsistent and inconclusive results derived from the literature.
... Strategic leaders must prioritize leveraging and sustaining the organization's underlying capabilities, as well as developing and retaining people and social capital (Hitt, Ireland & Hoskisson, 2014). Strategic leadership is fundamentally about managing people and social resources (Galbreath, 2005). Additionally, McCallum and O'Connell in 2009 emphasize that human and social capital are not mutually incompatible. ...
Conference Paper
Strategic leaders can effectively impact all business stakeholders and positively actualize critical management systems to the organizations. The strategic leader can decide and foresee an organization's future as per present organizational functioning and the organizational environment. In this time laden with uncertainties amidst the COVID-19 pandemic, everybody is universally experiencing an unusual fright. Present-day leaders can either deal with the business's vulnerabilities effectively by adopting a solution-driven approach or may lose the equilibrium notwithstanding vulnerabilities by performing ineffective management practices. This study, discusses strategic leadership and examines its uniqueness among other leadership styles, thereafter, discusses the usefulness of strategic leadership during the unprecedented and unforeseen times brought about by the COVID-19 pandemic, which is laden with uncertainty. In this paper, we have discussed the COVID-19 pandemic, its impact on business organizations including homecare, and the strategies adopted by the strategic leaders to mitigate the impact of the pandemic on business organizations. We present strategic leadership's vitality due to its innate suitability in face of the uncertainties encountered in the organizational environment and therefore indicate how strategic leadership aligns well with the uncertainties.
... According to Hall (1992), Resources usually consists of two categories: tangible and intangible. Resources include all the tangible products that a business needs, such as inventory, warehouses, and other facilities, and, on the other hand, intangibly all products, such as reputation, corporate culture, and internship, which do not appear on the balance sheets or financial reports (Galbreath 2005). ...
... The resource-based view takes the organisations as a collection of resources that should be valuable, rare, non-substitutable, and non-imitable in order to create a competitive advantage (Barney 1986;Penrose and Penrose 2009). These resources are considered not only tangible assets, such as hardware infrastructure but also intangible capabilities, such as the HR skills of the company (Galbreath 2005). The resources of the organisation are assessed via process capability/maturity models. ...
Article
The use of on-premises technology in the business environment to create a competitive advantage is ushering in a new era known as digital transformation. Although companies are aware of its potential benefits, they face challenges creating a clear roadmap to reform their existing processes in line with these technologies. Maturity models are developed to assist organisations by providing extensive guidance and a roadmap for improvement. However, as a result of the systematic literature review and its analysis, it was observed that none of the 18 existing maturity models in the digital transformation domain fully satisfies all the criteria of suitability, completeness, clearness, and objectivity. To close this research gap, this study aims to develop a holistic maturity model in the digital transformation domain, entitled DX-CMM, by applying a theoretically grounded development approach, which has so far been neglected despite its remarkable relevance. The purpose of DX-CMM is to assist organisations by providing current capability and maturity determination, deriving a gap analysis, and creating a comprehensive roadmap for improvement in a standardised way. An exploratory case study is also conducted to check the applicability of the model in this study.
... While a strong employer branding results in attraction and retention of talent, which can be viewed under the lens of HC theory, the resource-based view posits that if an organization's resources are valuable, rare, inimitable, and strategically organized, yield a sustained competitive advantage (Barney, 1991). Though the resources can be categorized as tangible and intangible (Galbreath, 2005), employer branding deals with intangible resources, and human resource management is vital to leverage such resources to spur sustained competitive edge (Thurow, 1992). Thus, employer brand is a crucial resource for attracting HC for a competitive advantage, and without it, managing other resources could be gruesome. ...
Article
Crowdsourcing platforms are a valuable source of information for employees and firms. They have become an essential part of human resource practices, such as recruiting, employee engagement, and the marketing of a company's brand. Crowdsourcing platforms can help enrich an employer's brand, with employee reviews acting as a terra‐incognita for the early‐stages in the employer branding process. In response to these dynamics, this research explores the employer value proposition preferences and the sentiments of employees in the US banking industry. Approximately 11,000 reviews on the crowdsourcing platform Indeed.com, covering the top 18 banks listed on the Fortune 500, were parsed. The text mining techniques topic modeling and sentiment analysis were carried out using Latent Dirichlet Allocation. The topic modeling analysis revealed work‐life balance, management, economic, social, and development values as the most preferred employer value proposition, while brand‐image, application, and interest values were the least preferred. Sentiment analysis showed that employees exhibit negative sentiments for management, work stress, work‐life balance, and economic values, and show positive sentiments for development, social, and interest values. The paper highlights avenues for future research and discusses the managerial and theoretical implications for managers and HR practitioners.
... Reuter et al., 2010;Hollos et al., 2012). The core concept of RBV is that the analysis of firms should be subject to the characteristics of their resources, where the utility, rarity, inimitability and non-substitutability are what classify these resources as competences, enabling sustainable competitive advantages for the firm (Wernerfelt, 1984;Barney et al., 2001;Galbreath, 2005). These competencies might include, for example, particular tangible resources such as specialised manufacturing facilities, or intangible ones such as trade secrets and labour experience (Teece et al., 1997). ...
Article
Additive Manufacturing (AM), or 3D printing as it is frequently known, is an umbrella term for a collection of manufacturing technologies that enables products to be manufactured layer-by-layer from three-dimensional digital data. While the costs associated with AM represents a barrier to its wider adoption, its benefits outweigh its costs when considered in some contexts. Few studies have investigated the costs and benefits of this technology from a supply chain perspective, particularly in market environments characterized by demand uncertainty. In this type of scenario, it becomes necessary to adopt higher levels of internal competencies, find the optimal way to manage inventories and flexibly respond to sudden market requirements. This thesis therefore aims to address this gap by examining three key aspects: the learning effects offered by AM, the impact of AM on inventory-related costs and the impact of AM on the critical capability of flexibility. To assess learning in AM, this thesis focuses on the experimental measurement of AM operator time and improvement in operator effectiveness as a result of learning. Learning is thus assessed by measuring the reduction of labour time through operator learning within a series of build repetitions and estimates a progress ratio which captures the learning effect within this series. To assess the impact of AM on inventory-related costs, this thesis develops a conceptual model that matches possible AM scenarios with demand volume level and severity of stockout penalty. It also conducts a case study to obtain insights into the resulting model which has been developed. In this case study, an interprocess comparison is undertaken by simulating a supply chain based on data collected from a plastic products manufacturing company that produces pipe fittings using Injection Moulding (IM) technology. The simulation model produced has been built using the Arena software package for three distinct scenarios: the current configuration with IM only, iii a proposed configuration with AM only, and a proposed configuration that combines AM with IM. To evaluate the impact of AM on flexibility, a conceptual model has also been constructed that maps certain AM characteristics relevant to flexibility to key market disruption scenarios faced by managers. This aspect is also highlighted through the case study which assesses the impact of AM on four distinct supply chain flexibility types: volume, delivery, mix and new product using metrics obtained from the literature. The results obtained on learning in AM suggest that AM exhibits a learning effect for both the novice and the expert operator with progress ratios of 67.73% and 80.42% respectively. Further, results on the impact of AM on inventory-related costs revealed that utilizing IM alone showed the lowest supply chain unit cost (€0.90) compared to utilizing AM as a stand-alone (€2.72) or in a combined approach (€0.94). With regards to AM’s impact on flexibility, the supply chain employing IM showed greater volume and delivery flexibility levels (i.e. 65.68% and 92.8% for IM compared to 58.70% and 75.35% for AM, respectively). However, AM showed higher mix and new product introduction flexibility level, indicated by the lower changeover time and cost of new product introduction to the system (i.e. 0.33 hrs and €0 for AM compared to 4.91 hrs and €30,000 for IM, respectively). It is anticipated that these results can be used to inform practitioners and scholars on various contexts where AM can create value and the appropriate and timely investments needed to unlock that value.
... Tangible job resources are things that have physical or financial values, such as materials, equipment, facilities, and financial assets, offered by the organization for employees' use in their work situation to accomplish their work goals ( Cater & Cater, 2009;Galbreath, 2005). Tangible job resources, thus, come from contextual sources and are part of the 'objects' type of job resources as classified by ten Brummelhuis and Bakker (2012) and Hobfoll (2002). ...
Article
Due to the pressure to do more with less, public employees are having higher levels of unreasonable workload, which can negatively affect their job satisfaction. Despite this, little research examines ways to promote reasonable workload in the public sector. Based on the conservation of resources (COR) theory, this study posits that supervisor support fosters coworker support, which can offer various resources to enhance reasonable workload and in turn, job satisfaction of public sector employees. Furthermore, based on the complementary resources perspective, we propose that tangible job resources magnify the effects of supervisor support and coworker support on reasonable workload. Results of structural equation models with data from the 2019 U.S. Federal Employee Viewpoint Survey support the above hypotheses. This study is important as it demonstrates practical ways to help public employees deal with their workload and enhance job satisfaction.
... The formulation of the strategic intention of an exploratory innovation requires the involvement of employees in a firm (Cook & Saini, 2010). Some scholars argue that HCWS can encourage employees to expand their knowledge domain and engage in innovation activities (Chen & Huang, 2009;Galbreath, 2005;Lin et al., 2018;Tajeddini & Martin, 2020), which might increase the stock of firm-specific knowledge (Jimenez-Jimenez & Sanz-Valle, 2008;Shipton et al., 2006;Siepel, Cowling, & Coad, 2017). Others also report that HCWS can generate negative employee outcomes, such as job stress, emotion fatigue (Han, Sun, & Wang, 2019) and health harm of work (Mariappanadar, 2020), because firms might use HCWS as a tool to achieve organizational objectives at the expense of employees' happiness (Jensen, Patel, & Messersmith, 2013;Poon & Law, 2021). ...
Article
Drawing on the extended resource-based view (RBV), this paper attempts to test the proactive role of high commitment work systems (HCWS) in affecting firms' strategic intention of exploratory innovation, and the moderating effect of technological opportunity (TO). Multi-sourced survey data from Chinese firms in high-tech and manufacturing industries are used to test the hypotheses. The results show that HCWS have an inverted U-shaped relationship with firms' strategic intention of exploratory innovation, and TO positively moderates such a non-linear relationship. By further decomposing TO into science-based (SBTO) and market-based (MBTO), the findings suggest that SBTO positively moderates the non-linear relationship between HCWS and firms' strategic intention of exploratory innovation, while MBTO only positively moderate the linear relationship between them. These findings enrich the understanding of how HCWS affect firms' strategic intention of exploratory innovation by highlighting the double-edged sword roles of HCWS, as well as TO's asymmetrically moderating effect, respectively.
... In this theory, resources refer to the internal resources owned and controlled by the company, including tangible and intangible resources that drive business strategy and performance (Ray et al., 2004). For instance, financial, technology, information, and knowledge resources (Galbreath, 2005;Russo & Fouts, 1997). ...
... Various analyses have investigated the capabilities and available resources of universities and research institutes, and they can be classified into tangible and intangible resources. Tangible resources include financial assets, such as manpower, buildings, and land, and intellectual property, such as patents, copyrights, organizational structure, decisionmaking methods, policies, networks, and members' experience, expertise, knowledge, and know-how [37,[69][70][71][72]. These tangible and intangible resources can in turn be classified as research resources, research capabilities, and performance diffusion capabilities. ...
Article
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Based on the resource dependence theory and the resource-based view, this study examined the impact of the resources and capabilities of government-funded research institutes (GRIs) on technology transfer. Panel analysis was performed on 21 GRIs in South Korea representing three mission types—basic future leading, public infrastructure, and industrialization—for the 2015–2019 period. The analysis confirmed that the factors affecting technology transfer performance differed among GRIs depending on their mission type. For basic future leading GRIs, the number of technology transfer cases was strongly associated with the number of research personnel, while there was a negative relationship between technology transfer and the total budget, the number of research publications, and the number of patent registrations. None of the variables affected the revenue from technology fees. Researchers at these GRIs appear to have a strong motivation for technology transfer, but the priority for resource allocation at the institutional level is the production of papers and patents rather than technology transfer. For public infrastructure GRIs, the number of patents held and the number of technology licensing office (TLO) personnel had a positive impact on the number of technology transfer cases, while none of the variables affected the revenue from technology fees. Thus, the number of patents is more favorable for technology transfer at this type of GRI compared to those that pursue a mission of basic future leading, possibly because their research focus is more related to engineering than to basic science. For industrialization GRIs, the number of TLO personnel affected the number of cases of technology transfer, and the number of patent registrations and TLO personnel affected the revenue from technology fees. The speed of technology development and industrial application is thus much faster in industrialization GRIs than in the other GRI types. The results of this analysis show that mission attributes are important drivers of technology transfer performance. This study thus offers policy implications by illustrating those different resources should be provided to different types of GRI to optimize their technology transfer performance.
... The idea that the interactions among strategic resources can develop a competitive advantage that leads to superior organizational performance is not new in the strategic management field [172,173], and some perspectives, such as that of the RBV, deepen this argument [174,175]. Basically, it is considered that resources, regardless of the individual value they may have, are capable of increasing their value through synergy with other organizational resources [114]. In terms of designing the research model, this means that relationships among resources-with both direct and indirect impacts-must be considered. ...
Article
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Quality of life (QoL) is both a main concern of good local governance and an indicator of city performance. A key question to answer is that of what resources have the potential to enhance city performance, thus providing added value to stakeholders. By adopting a resource-based view (RBV), this paper explores the relationships between a group of strategic resources (e-government, transparency, and reputation) and QoL in a sample of 78 Spanish municipalities. Our study makes a contribution by providing an original design of a set of relations among our own selected resources and between them and quality of life. In order to test those relations, we define and create four constructs by using four different data sources and structural equation modeling (SEM). The results show a positive influence of resources on QoL, which is supported by a number of positive direct and indirect interactions among them. This means that municipalities with better strategic resources in local governments exhibit a higher level of quality of life.
... Resource-Based View (RBV) theory was proposed by Wernerfelt (1984), and it has become a commonly referred management theory since the last few decades (Kellermanns et al., 2016;Galbreath, 2005). Penrose (1959) mentioned that the theoretical perspective of RBV presents organizations as a bundle of resources and capabilities. ...
Article
The current paper aims to develop a conceptual model for examining total quality management (TQM) (Soft and Hard practices) and their effect on operational performance. The TQM philosophy and Recourses Based View theory (RBV) provide starting points for developing the conceptual model. Based on the systematic literature review, two main groups of TQM practices, namely, soft and hard, were identified and connected to operational performance. The TQM model concerning soft and hard practices was assessed against operational performance. The in-depth discussion we made on using different aspects of soft/hard TQM should be retained or revised. This literature suggested that TQM must be practiced with a clear sense of the impact on operational performance. The paper has some essential discoveries since it is appropriate for management to invest effort and time in analyzing the effect of soft/hard TQM practices implementation on operational performance. Moreover, the conceptual model provides an insightful platform for assessing the impact of TQM practices on operational performance.
... From that perspective, the RBV helps to understand how superior export performance can be attained relative to other firms through acquiring and exploiting some of the firm's resources, thus reflecting the resource-performance relationship tested in export performance models. More precisely, the RBV holds that those valuable and rare resources of a company, which are costly to imitate and properly exploited (Barney, 1991(Barney, , 2001, can be used to develop a sustainable competitive advantage and improve the firm's efficiency and efficacy (Galbreath, 2005). This is particularly true for firms that operate internationally (Bloodgood, Sapienza, & Almeida, 1996;Dhanaraj & Beamish, 2003;Mansion & Bausch, 2020). ...
Article
Although research concerning the internationalization and innovativeness of small‐ and medium‐sized enterprises (SMEs) has received increasing scholarly attention, it mostly neglected internationalization support and underexplored post‐crisis contexts. Greece recently faced a severe economic crisis of international concern, which resulted in a unique business environment to examine the mechanisms of innovativeness and internationalization. This study examines the roles of innovativeness and internationalization support in export performance using survey data of 262 Greek manufacturing SMEs. Our findings indicate that innovation helps firms improve their export performance, but the different definitions of export performance and innovativeness caused sizeable differences. Internationalization support is important for the export performance of firms, and SMEs receiving high levels of internationalization support can overcome the lack of innovativeness and increase their export performance.
... In addition, they allude to resource-based theory emphasizing the competitive advantage gained or sustained from relying on rare, valuable, hard to imitate, and non-substitutable resources (Barney, 1991). In addition to tangible resources, capabilities such as organizational, reputational, and intellectual property assets used to support resource management are associated with success (Galbreath, 2005;Jawaad and Zafar, 2020). Finally, institutional theory and stakeholder approaches concentrate on legitimacy-based aspects and compliant behavior regarding a firm's environmentfor example, pressure from stakeholders such as customers and investors regarding the adoption of green manufacturing practices (Govindan et al., 2015;Hojnik and Ruzzier, 2016). ...
Article
This paper investigates the success of sustainable product innovation in the textile, clothing, and leather industry. Basing on the typology of Medeiros et al. (2014) a literature review was conducted to update the critical success factors. To investigate the importance of the factors, this research made use of a mixed methodology. 1634 digital news magazine articles and corporate communications were collected in a database describing the development and introduction of 176 new products from 158 companies using low-waste, circular, or “fair” production processes and new materials such as organic, recycled, bio-based synthetic fabrics. From the product and innovation managers responsible, a sample of 33 respondents participated in a survey, where their products had to be evaluated using operationalizations of three success aspects and fourteen success factors. Additionally, five sustainable textile product innovation experts characterized all 176 products in a similar manner, based on the information in the database. Relying on an indirect benchmarking approach both samples produce similar conclusions. The most important success factors are customer expectation fulfillment (in first place) followed by compliance with laws and regulations, green creativity, knowledge about factors that drive sustainable buying, investments in R&D infrastructure, and competitor monitoring. While the importance of market acceptance and the understanding of customers’ perspectives is highlighted, the research makes a contribution to the literature on success factors of sustainable textile innovations.
... The Quran (2:22, 2:29) has described resources as everything that is tangible or otherwise that can be used to help mankind. However, from an academic perspective, the definition of resources has to be more specific in nature (Galbreath, 2005). Resources can be defined as factors which enable a firm to initially function, without them, the business would not be able to develop (Burvill et al., 2018). ...
Article
Based on Maqasid Al-Syariah the purpose of this study was to examine the relationship between the four traditional performance measurement variables: resources, processes, outputs, and outcomes to establish a viable performance measurement framework for mosques. The second was to include governance as the fifth variable as part of the performance measurement framework. This study employed a quantitative research method using self-administered questionnaires as the primary form of data collection. A total of 800 questionnaires were distributed, and only 224 questionnaires were received. From that, 210 questionnaires were analysed using Structural Equation Modeling (SEM). Three main findings were obtained. First, the finding found that processes played a significant role in mediating the influence of resources on outputs. Second, the Maqasid Syariah Index had a significant negative association with outputs which indicated that as outputs increase, the objectives of the mosques generally diminish. Therefore, mosques are not able to meet their goals with increased outputs. Third, governance directly affects the resources and outputs of mosques. The governance mechanisms through the application of accountability, disclosure and transparency dimensions directly affected mosque resources. The results of this study provide value to stakeholders of mosques specifically those who are direct recipients of the mosque operations and activities, such as the religious authorities and society.
... Only valuable, rare, imperfectly imitable and substitutable resources are able to generate sustainable competitive advantages. Intangibles, for their peculiarities such as high barriers to competitive duplication, scalability, increasing scale returns, and the net effect (Lev, 2001), respect all the conditions prescribed by the RBV to the resources able to generate a sustainable competitive advantage (Barney, 1991;Galbreath, 2005). A recent research of Galbreath and Galvin (2008) compared the effects of firm-specific (resources) and industry-specific factors on the performance variations, proving that, as hypothesised by scholars of RBV, unlike tangible resources, only intangible assets and capabilities are able to explain the company's performance variations. ...
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The purpose of the paper is to investigate the value relevance of intellectual capital (IC) of Italian listed firms. The paper applies the Ohlson model (1995) to 524 firm-year observations of Italian listed companies for the three-year period 2006-2008 using a panel econometric model. The findings show that the fundamental variables of the Ohlson model (book value and earning) are positively related to the market value. On the contrary, the IC variables, which reflect human capital, innovation capital, process capital and relation capital, do not have a meaningful relation with the market value, except for the last one. Concluding, Italian investors do not seem to be able to detect and incorporate the information on IC as represented in the IC proxies chosen for the research into their business valuation process.
... Past research indicates that resources in the firms are key essentials [62] to attain productivity in green innovation [63]. However, firms should utilize them proficiently [64]; therefore, RB became a crucial opinion amongst industrialized entrepreneurs and just attained fame in the perspective of entrepreneurship [65]. ...
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Environmental issues have gradually gained attention in the last decade because of increased global warming and high waste production. Therefore, this article aims to add value to the environment management research by analyzing green product innovation through market orientation. Moreover, this study includes green self‐efficacy as a mediator, being less focused in the past literature to examine employees’ confidence in innovating green products according to customers’ needs. In addition, resource bricolage is also introduced as a moderator because fewer studies display the empirical results about organizations producing or tend to produce innovated green products with a limited number of resources. Data were collected from 477 employees of small and medium‐sized enterprises using a self‐administered questionnaire in Pakistan. Empirical results revealed by SmartPLS software delineate that market orientation has a positive and significant impact on green self‐efficacy and green product innovation. Moreover, green self-efficacy shows a significant mediation impact between market orientation and green product innovation. Additionally, resource bricolage also moderates the relationship between market orientation and green product innovation. Overall, the study contributes to theoretical and practical knowledge about green product innovation in tackling the world’s environmental issues.
... Business resources and capabilities are classified as tangible and intangible (23). Tangible resources consist of human, financial, and physical resources, while intangible resources include organizational and reputational resources. ...
Article
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Background. Many countries worldwide use sports events as a tool to stimulate both their national and local economies. To gain a competitive advantage, knowledge of sports event success is important not only for stakeholders but also for hosting countries. However, due to the diverse conceptualizations of event success, the knowledge of the issue is fragmented and there is a lack of comprehensive studies for scholars and event practitioners. Objectives. To fill this knowledge gap, this article aims to review the key success factors (KSFs) of sports events based on the resource-based view (RBV) theory. Methods. A systematic review is used to analyze the KSFs of sports event management. Results. Our findings from 42 peer-reviewed papers indicate that organizational and reputational resources seem to play the most critical roles in sports event management success. Conclusion. The conceptual framework representing the KSFs of sports event management based on the RBV theory is presented. Moreover, several themes for future research on this issue are also suggested.
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The competitive environment, so strongly globalised, means firms must operate in conditions of uncertainty and consequently adopt appropriate strategic actions to best exploit competitive advantages. The aim of this chapter is, therefore, to analyse the role of corporate governance in situations of uncertainty and complexity, as well as to illustrate the set of strategies available to the corporate system. More specifically, after analysing the role of strategic and operational management in complex areas, characterised by strong uncertainty, we apply those concepts by focusing on the economic-financial strategies and competitive levers that can be used to manage financial decisions correctly.
Purpose The aim of the study was to determine how the different types of resources possessed by a small- and medium-sized enterprise (SME), in conjunction with the environmental uncertainty perceived by the SME's managers, affect SME's alliance formation. Design/methodology/approach Personal interview method was used to collect responses to a survey instrument from Indian SMEs. Logistic regression technique was used to analyze the responses obtained from 127 manufacturing enterprises. Findings The study finds that while both tangible and intangible resources possessed by an enterprise positively influence the enterprise's alliance formation, the influence of intangible resources is significantly stronger. The authors also observed the interactive effect between each resource type and environmental uncertainty to be a significant predictor of alliance formation. Research limitations/implications The study does not account for temporal effects such as changes in resources and perceived environmental uncertainty, which may affect alliance formation. Similarly, because the data were obtained from a geographically restricted sample, replication of the study in other geographies may be necessary for generalizing the results. Originality/value The paper responds to the call for research to link firm resources and perceived environmental uncertainty toward explaining alliance formation by SMEs. The study went beyond making a distinction between the two types of resources by explicating how the interaction of resource type and environmental uncertainty will affect alliance formation.
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The paper aims at investigating how CSR (Corporate Social Responsibility) and ESG (Environmental, Social and Governance) disclosure affect the brand value of a sample of Interbrand companies. Empirically results show that the brand value is positively related to the environmental disclosure, social disclosure, and ESG disclosure, whereas no significant correlation has been found for the governance disclosure. This study provides new evidence to the growing body of literature that identifies CSR as a means of improving the company’s brand value and can represent a starting point in the discussion on the reputational benefits of CSR practices.
Article
Firm resources are important drivers of firm success, and both tangible and intangible resources have been suggested to have a positive linear effect on firm success when studied independently. In this study, we focus on a firm's entire resource portfolio composition, and posit that bundling dissimilar types of resources is a complex process that involves trade-offs. Drawing on complexity theory, we propose that firm success may be influenced by resource composition, as represented by relative intangibility—that is, a firm's share of intangible resources relative to the sum of both types of resources. Curvilinear hypotheses with environmental moderators are developed and tested using Computer-Assisted-Text-Analysis (CATA) methodology on a 5-year longitudinal sample of 2,245 S&P 500 firms. The results suggest that relative intangibility exhibits a U-shaped relationship with productivity, a key indicator of firm success. However, shape-flips are observed when environmental moderators are introduced, as the relationship becomes inverted U-shaped in less complex environments characterized by low instability and high munificence.
Article
Purpose This study proposed the integrative model of dynamic dominant logic (DL) with exploitation (EP) and exploration (ER) as a pattern of actions in endeavoring firm performance (FP). This study also intended to explain the multiple patterns of DL in creating technical and evolutionary fitness simultaneously. Design/methodology/approach This study used a cross-sectional quantitative analysis of the Indonesian commercial banking population facing digital transformation and was analyzed using covariance-based structural equation modeling through parceling. Findings The model confirmed that DL positively affects EP and ER. It also revealed that DL indirectly impacts FP through EP, indicating changes in the traditional banking business through the strong acceptance of “new realities” in adapting to the rapid growth of technology. Hence, this study discovered that during the recent banking digital transformation, the beneficial inertia of the technical pattern of action might lose effectiveness in creating superior performance. Practical implications DL is vital in locking short-term performance while maintaining long-term performance opportunities through EP and ER to promote digital transformation. Accordingly, it induced banks to adopt new technology for value creation and fortifying competitive advantage. Originality/value This study provided a theory about how DL links the firm's decision-making process by promoting multiple patterns of action in achieving technical and evolutionary fitness. It highlighted the DL as a resource conceptualization that promotes resource development through EP and ER as microfoundation of dynamic capabilities during the tension of institutionalization and digital transformation.
Article
Abstract Purpose The aim of this paper is to examine the impact of directors' home regions on corporate social responsibility (CSR) disclosure. Specifically, the authors aim to determine whether Anglo-American, European, French, other European and other regional directors' presence affects CSR disclosure differently. Design/methodology/approach This empirical study uses panel data analysis of all listed firms on the SBF 120 from 2008 to 2019. The environmental, social and governance (ESG) scores are collected from the Bloomberg database and indicate the extent of CSR information disclosure by French companies. The paper is based on a dynamic generalized method of moments panel estimator that makes it possible to control for unobservable heterogeneity and endogeneity and reduces estimation bias. Findings The findings of this study provide evidence that home region diversity and the presence of Anglo-Americans on a board are positively and significantly associated with ESG disclosure and environmental disclosure, whereas they are negatively associated with social and governance disclosure. Surprisingly, when directors come from European countries, they disclose less ESG and environmental information. Nevertheless, when only French directors are present, the company tends to divulge all dimensions of CSR. Indeed, while there is a significant positive influence of French directors on ESG disclosure, the presence of other European directors displays negative and statistically significant regression coefficients. Research limitations/implications This study may be interesting the French policy makers who can now pay more appropriate attention to directors' nationality or region. Thus, firms should identify the foreign directors who can support their strategy with relevant experience in terms of CSR. This could help to change the opinion of some companies that consider the internalization of the board as a constraint rather than an opportunity. These results will be useful for French-listed companies in setting the criteria for the appointment of foreign directors. It may be interesting to recruit directors across European boundaries. Practical implications This paper attempts to provide a better understanding of the effects of the home regions of directors on CSR disclosure in order to enlighten corporate managers whose companies operate in different cultures given that they have to deal with this aspect. In this international business environment, CEOs should increasingly consider the international CSR experience of directors to be a resource. In addition, this study may be of relevance to French market authorities, which constantly encourage firms to diversify the profiles of directors on their boards and recruit more international members. Originality/value This study is the first to evince that the disclosure of each CSR disclosure score differs depending on the directors' home regions. Unlike previous studies, the authors focused simultaneously on the resource-based view (RBV) and institutional theory.
Article
Purpose Environmental sustainability is one of the most pressing issues faced by the electric and electronics industry today. Industries are being challenged to incorporate environmental initiatives in their corporate strategies. Thus, this study aims to investigate the impact of stakeholder pressures (regulatory, internal and market) on green supply chain management and green corporate resources as well as their effects on the economic and environmental performance of Taiwan's electric and electronic industry. Design/methodology/approach A total of 194 valid questionnaires were collected out of the 1,000 questionnaires distributed to Taiwan's electric and electronic product manufacturers. A structural equation modeling, using Amos 22.0, was used to test the hypotheses. Findings The results of the analyses show that stakeholder pressure has a significant positive impact on corporate green resources and green supply chain management practices while green supply chain management practices have a significant and positive impact on organizational performance. Moreover, corporate green resources provide a mediation between organizational stakeholder pressure and green supply chain management. Practical implications The results may be of value and interest to supply chain managers and policymakers on the push factors for implementing green supply chain management practices and their consequences. Originality/value This paper shows the complementarity of stakeholder and resource-based theories in influencing organizational performance in the electric and electronic industry in the context of sustainable development. This also enhances the understanding of the antecedents and consequences of green supply chain management and provides robust findings on the relationship between environmental and economic performance.
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The primary objective of this paper is to advance the theoretical knowledge on the phenomenon of gazelles by integrating the findings of previous studies into a conceptual model that would account for a sustainable high growth. A theoretical explorative and deductive method is adopted. A number of published works on gazelles were systematically reviewed. Based on this review, the paper attempts to identify the key factors that have been found to explain the high growth of the gazelles and its discontinuity, and integrate them to form a conceptual model. The proposed model illustrates the linkages between Entrepreneurship and Marketing disciplines. Five building blocks of the model are identified. It is developed based on previous studies on gazelles which are majorly mixed sector studies. Therefore, to refine the understanding of the phenomenon of HG-SMEs, future research suggestions would be to enrich the concepts obtained from the literature by gathering the data from the field and to test the new model in HGSMEs operating only in the service industry.
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This article presents a synthesizing framework of the determinants of open innovation adoption in public organizations. We examine the fragmented literature and integrate earlier results. To provide a theoretical foundation to our understanding of open innovation adoption, we categorize determinants identified in the literature based on three theoretical perspectives on organizations: transaction cost theory, resource-based theory, and institutional theory. Our study finds that a resource-based rationale is dominant in the literature. Considerations regarding transaction costs and institutional pressures have received less attention. We end the article with suggestions for future research.
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A variety of public economic policy measures have been designed and implemented in an effort to enable SMEs to limit damages resulting from the adverse sanitary and economic shocks associated with COVID-19. The originality of our study is to propose a rating of the various economic policy measures, the rating being expressed by SMEs owners conditional to their business expectations. In so doing, our contribution is to highlight the policy measures to be implemented in order to support resilient and ambitious ventures with the most positive prospects, which are likely to contribute the most to economic recovery. We exploit an original and rich dataset derived from a survey conducted in May 2020 among a representative sample of more than 2100 Belgian (Walloon) SMEs. The Belgian experience is remarkable because the wide variety of measures it undertook echoes many of the measures taken by OECD countries. Our results suggest that the respondents have an overall positive evaluation of the various economic and social policy measures implemented by the Belgian authorities. More importantly, the rating by SME owners with the most favorable expectations are, however, significantly different than their counterpart. Measures helping firms to maintain their workforce are particularly highly rated by firms with the best prospects. It also appears that those firms prefer short-term and transitory measures.
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Constructs an analytical framework for a resource-based approach to strategy formulation. There are five stages in this framework: analyze resources, appraise capabilities, analyze competitive advantage, select strategy, and identify resource gaps. The concepts of this framework are illustrated by reference to existing U.S. firms such as IBM, Xerox, Harley-Davidson, and 3M. This framework uses resources and capabilities as the foundation for a firm's long-term strategy because they provide direction for firm strategy and serve as the primary source of firm profit. Resources are defined as the inputs into the production process and include items of capital equipment and skills of individual employees. Capabilities are defined as the capacity for a team of resources to perform some task or activity. When analyzing the competitive advantage of a firm, durability, transparency, transferability, and replicability are considered important factors. To be successful, firms must develop strategies which utilize their unique characteristics. (SRD)
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This paper elucidates the underlying economics of the resource-based view of competitive advantage and integrates existing perspectives into a parsimonious model of resources and firm performance. The essence of this model is that four conditions underlie sustained competitive advantage, all of which must be met. These include superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition. In the concluding section, applications of the model for both single business strategy and corporate strategy are discussed.
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Strategy is about seeking new edges in a market while slowing the erosion of present advantages. Effective strategy moves are grounded in valid and insightful monitoring of the current competitive position coupled with evidence that reveals the skills and resources affording the most leverage on future cost and differentiation advantages. Too often the available measures and methods do not satisfy these requirements. Only a limited set of measures may be used, depending on whether the business starts with the market and uses a customer-focused approach or alternatively adopts a competitor-centered perspective. To overcome possible myopia, the evidence of advantage should illuminate the sources of advantage as well as the manifestations of superior customer value and cost superiority, and should be based on a balance of customer and competitor perspectives.
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Resource-based theory maintains that intrinsic characteristics of resources and capabilities, such as their tacitness, complexity, and specificity, prevent imitation and thereby prolong exceptional performance. There is little direct evidence to verify these claims, yet a substantial literature encourages firms to formulate competitive strategies around resources with these attributes. Further, work outside the resource-based tradition suggests that these attributes can slow innovation, and it is not clear when this effect outweighs the benefits of inimitability. This paper seeks to clarify whether and how the complexity, tacitness, and specificity of a firm's knowledge affect the persistence of its performance advantages. We find that the complexity and tacitness of technological knowledge are useful for defending a firm's major product improvements from imitation, but not for protecting its minor improvements. The design specificity of technological knowledge delayed imitation of minor improvements in this study. Copyright © 2002 John Wiley & Sons, Ltd.
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In a recent paper, Rouse and Daellenbach (1999) provide a five-step methodological approach which they feel will cure alleged inadequacies in empirical resource-based research. We suggest, however, that their methodology can provide only a useful aid for expanding our understanding of potential sustainable competitive advantages but will not allow researchers to effectively verify those hypothesized advantages. Specifically, we argue that Rouse and Daellenbach's methodology is plagued by three major shortcomings: (1) it confuses the important distinction between knowing-how and knowing-what; (2) it fails to recognize the importance of observable variables in verifying the sources of sustainable competitive advantage; and (3) it calls for sampling on the dependent variable. Copyright © 2002 John Wiley & Sons, Ltd.
Article
In today's hypercompetitive landscape, organizations are moving from being multinational to being global in the strategic intent. There are a number of “drivers” of this globalization process, but it would be difficult to argue that globalization is not going to be an enduring phenomena. The consequences of this modification in the strategic orientation of organizations have implications for most every element in an organization. To gain an insight into the future of global organizations in the twenty-first century, a market-based perspective is utilized. In addition, the importance of organizational boundary spanners is also explored as a means to effectively compete in the global competitive arena. Inpatriation is viewed as a means to gain tacit knowledge at the headquarters level to ensure adaptation of corporate standard operating policies to effectively compete as a global network, yet with the flexibility to meet local competitor strategies and consumer demands. © 2001 John Wiley & Sons, Inc.
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This article posits a framework that shows how market-based assets and capabilities are leveraged via market-facing or core business processes to deliver superior customer value and competitive advantages. These value elements and competitive advantages can be leveraged to result in superior corporate performance and shareholder value and reinvested to nurture market-based assets and capabilities in the future. The article also illustrates how resource-based view (RBV) and marketing considerations in the context of generating and sustaining customer value can refine and extend each other's traditional frames of analysis. Finally, the article posits a set of research directions designed to enable scholars to further advance the integration of RBV and marketing from both theory-driven practice management as well as a problem-driven theory development perspectives.
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A recent series of articles in the Strategic Management Journal has discussed the potential value of an organization developing a market orientation in its quest to achieve success. We posit that market orientation can enhance success, but that its potential value should not be considered in isolation. Specifically, we draw on the resource-based view of the firm to suggest that four capabilities—market orientation, entrepreneurship, innovativeness, and organizational learning—each contribute to the creation of positional advantages for some firms. The data used are drawn from 181 large multinational corporations (MNC). The results indicate that positional advantages arising from the confluence of market orientation, entrepreneurship, innovativeness, and organizational learning have a positive effect on MNC performance (five-year average change in ROI, income, and stock price). Overall, the results support the contention that market orientation can enhance success, albeit within the context of other important phenomena. Copyright © 2001 John Wiley & Sons, Ltd.
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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.
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Sustainable competitive advantage results from the possession of relevant capability differentials. The feedstock of these capability differentials is intangible resources which range from patents and licenses, to reputation and know-how. A framework of intangible resources has been produced which formed the basis for a national survey of chief executives in the U.K. Some of the more significant findings of the survey were that: employee know-how and reputation are perceived as the resources which make the most important contribution to business success; and that for most companies operations is the most important area of employee know how. This article argues, by means of both theoretical reasoning and empirical evidence, that the analysis of intangible resources should play a major role in the strategic management process.
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Whereas prices serve to allocate many resources in market economies, there remain vast reservoirs of unpriced resources to be managed. Business management and strategy concerns the creation, evaluation, manipulation, administration, and deployment of unpriced specialized scarce resource combinations. This paper applies the formalism of cooperative game theory to these concerns. In cooperative game theory, rents appear as the negotiated payments for the services of scarce valuable resources. The division of surplus is determined by the relative values created by different use combinations of resources. Within this framework, the strategy problem is clearly seen as one of discovering or estimating the value of various resource combinations. New wealth can be created by trade in resources as long as there are hitherto unexamined combinations. Copyright © 2003 John Wiley & Sons, Ltd.
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Organizational capabilities, appropriately defined, can meet the conditions, articulated by the resource-based view of the firm, for being a source of sustainable competitive advantage. However, this paper observes that there are limits to the extent of the importance of such capabilities. They are vulnerable to threats of erosion, substitution, and above all to being superseded by a higher-order capability of the ‘learning to learn’ variety. This suggests that there can be an infinite regress in the explanation for, and prediction of, sustainable competitive advantage. The problem is resolved by arguing that the value of organizational capabilities is context dependent, and by recognizing that the strategy field will never find the ultimate source of sustainable competitive advantage.
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This article is concerned with the role of intangible resources in business strategy. In particular it is concerned with identifying the intangible sources of sustainable competitive advantage. Sustainable competitive advantage results from the possession of relevant capability differentials. Regulatory and positional capabilities are concerned with intangible assets; functional and cultural capabilities are concerned with competencies. A framework linking intangible resources to capabilities has been devised and is used as the basis of a new technique for identifying the relative contribution which the different intangible resources make to competitive advantage. The results of the use of this technique in six case studies are reported.
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•A dominant theoretical paradigm in academic strategic management circles is the Resource-Based View (RBV). This paper reviews the literature of this position and the extent to which the RBV may be seen as a source of practical guidance for managers seeking competitive advantage and strategic success.•The theories of management academics should be of practical value to managers, otherwise such theories are of limited value. The test of the validity of theorizing about management is whether the theories produced help to improve the art of management. That is the criterion adopted in this paper.•The RBV is an ‘inside-out’ perspective, according to which, competitive success lies within the hands of managers themselves and it is from the point of view of practising managers that this paper examines competitiveness. Consequently, the assessment of the RBV will be a purely instrumental one. Does it help managers to manage better? Copyright © 2002 John Wiley & Sons, Ltd.
Article
Good corporate reputations are critical because of their potential for value creation, but also because their intangible character makes replication by competing firms considerably more difficult. Existing empirical research confirms that there is a positive relationship between reputation and financial performance. This paper complements these findings by showing that firms with relatively good reputations are better able to sustain superior profit outcomes over time. In particular, we undertake an analysis of the relationship between corporate reputation and the dynamics of financial performance using two complementary dynamic models. We also decompose overall reputation into a component that is predicted by previous financial performance, and that which is ‘left over’, and find that each (orthogonal) element supports the persistence of above-average profits over time. Copyright © 2002 John Wiley & Sons, Ltd.
Article
This paper examines manufacturing strategy from the perspective of the resource-based view of the firm. It explores the role of resources and capabilities in manufacturing plants that cannot be easily duplicated, and for which ready substitutes are not available. Such resources and capabilities are formed by employees' internal learning based on cross-training and suggestion systems, external learning from customers and suppliers, and proprietary processes and equipment developed by the firm. Based on data from 164 manufacturing plants, the paper empirically demonstrates that competitive advantage in manufacturing (as measured by superior plant performance) results from proprietary processes and equipment which, in turn, is driven by external and internal learning. The implication is that resources such as standard equipment and employees with generic skills obtainable in factor markets are not as effective in achieving high levels of plant performance, since they are freely available to competitors. The paper also demonstrates the important role of internal and external learning in developing resources that are imperfectly imitable and difficult to duplicate. Copyright © 2002 John Wiley & Sons, Ltd.
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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.