Resource Allocation as an Outcropping of Strategic Consistency: Performance Implications
Abstract: Similarities in financial resource allocations across the lines of business of diversified firms may indicate corporate strategic consistency, which may lead to superior corporate performance. In s...
Cites background or result from "Resource Allocation as an Outcroppi..."
...Harrison et al. / Journal of Management 27 (2001) 679–690...
...The Harrison et al. (2000) model, combined with findings on resource complementarity, offer an explanation for the near-zero returns acquiring firms receive as well as the contradictory findings on relatedness (e....
...We conclude from this analysis that Harrison et al.’s (1991) original findings have not only gained support over time, but that they suggest an important and valuable conclusion regarding access to and use of complementary resources....
...Causal ambiguity exists when the relationship between the resources a firm controls and the profits they create are imperfectly understood (Barney, 1991)....
...A Resource-based Perspective on Diversification From a resource-based view, business executives should manage diversified resources so as to achieve a sustainable competitive advantage (Barney, 1991), which should lead to short- and long-term economic profits (Mahoney & Pandian, 1992)....
...A key issue in determining whether a resource can generate profits is whether it is idiosyncratic (Barney, 1991; Mahoney & Pandian, 1992)....
"Resource Allocation as an Outcroppi..." refers background in this paper
...For example, it is possible for two companies to produce the same product but have very different perspectives on the usefulness of research and development in the way it is produced (Porter, 1985)....
...The purpose of this article is to present theory and empirical evidence that support a resource-based view of the relationship between diversification and performance (Barney, 1988; Harrison, Hitt, Hoskisson, & Ireland, 1991; Mahoney & Pandian, 1992; Wernerfelt, 1984)....
...The findings reported herein lend some support to the viability of a resource-based approach to the study of diversity (Harrison et al., 1991; Mahoney & Pandian, 1992; Wernerfelt, 1984)....