Trust: The Social Virtues and the Creation of Prosperity

We address current criticisms of the RBV (oversight of dynamism, environmental contingencies, and managers' role) by linking value creation in dynamic environmental contexts to the management of firm resources. Components of the resource management model include structuring the resource portfolio; bundling resources to build capabilities; and leveraging capabilities to provide value to customers, gain a competitive advantage, and create wealth for owners. Propositions linking resource management and value creation are offered to shape future research.

https://www.jstor.org/stable/pdf/20159292.pdf

Managing Firm Resources in Dynamic Environments to Create Value: Looking Inside the Black Box

What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

This study examined the influence of internal capabilities and external networks on firm performance by using data from 137 Korean technological start-up companies. Internal capabilities were operationalized by entrepreneurial orientation, technological capabilities, and financial resources invested during the development period. External networks were captured by partnership- and sponsorship-based linkages. Partnership-based linkages were measured by strategic alliances with other enterprises and venture capitalists, collaboration with universities or research institutes, and participation in venture associations. Sponsorship-based linkages consisted of financial and nonfinancial support from commercial banks and the Korean government. Sales growth indicated the start-up's performance. Regression results showed that the three indicators of internal capabilities are important predictors of a start-up's performance. Among external networks, only the linkages to venture capital companies predicted the start-up's performance. Several interaction terms between internal capabilities and partnership-based linkages have a statistically significant influence on performance. Sponsorship-based linkages do not have individual effects on performance but linkage with financial institutions has a multiplicative effect with technological capabilities and financial resources invested on a start-up's performance. Implications and directions for future research were discussed. Copyright © 2001 John Wiley & Sons, Ltd.

/pdf/internal-capabilities-external-networks-and-performance-a-55nnabowqv.pdf

Internal capabilities, external networks, and performance: a study on technology‐based ventures

/pdf/social-capital-a-theory-of-social-structure-and-action-4m7poq6byy.pdf

Social capital: a theory of social structure and action

Two research limitations pertaining to environmental munificence-organization relationships are examined: (a) overabstraction, which exists when environment is defined too broadly, resulting in inappropriate aggregation of disparate environmental units and (b) conceptual ambiguity, which exists when researchers use different labels to describe similar munificence constructs and similar labels to describe different constructs. These limitations are clarified, and measurement suggestions, along with other research implications, are discussed.

Environmental munificence: a theoretical assessment

Franchising: A Review and Avenues to Greater Theoretical Diversity

Pre-Startup Planning and the Survival of New Small Businesses: Theoretical Linkages:

A study of 439 franchisors was conducted to identify factors influencing changes in their propensity to franchise. Consistent with agency theory, franchisors with wide multinational scope were increasing their proportion of franchised outlets whereas franchisors with large outlets were emphasizing firm ownership. As predicted by resource scarcity theory, franchisors were decreasing their proportion franchised as they grew in size, although most of the decrease occurred while firms were relatively small. In contrast to resource scarcity theory, franchisors increased their proportion franchised over time. Key implications are that both agency and resource scarcity theories are needed to explain franchising, but perhaps future research should look beyond resource scarcities toward resource-based capabilities to better explain franchising decisions.

Resource Scarcity and Agency Theory Predictions Concerning the Continued Use of Franchising in Multi‐outlet Networks

Research exploring why franchisors choose a particular mix of franchise and company owned units has been unsuccessful in explaining a large portion of variance. This study presents and tests a model synthesizing multiple explanations of franchising strategy. Strong support for the model is found.

Gary J. Castrogiovanni

Papers

Environmental munificence: a theoretical assessment

Franchising: A Review and Avenues to Greater Theoretical Diversity

Pre-Startup Planning and the Survival of New Small Businesses: Theoretical Linkages:

Resource Scarcity and Agency Theory Predictions Concerning the Continued Use of Franchising in Multi‐outlet Networks

Franchising strategy: a proposed model and empirical test of franchise versus company ownership.