Resource Allocation as an Outcropping of Strategic Consistency: Performance Implications
TL;DR: 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 as discussed by the authors. But, as discussed in Section 2.
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...
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TL;DR: This article explored the role of integrated brand management in China and found that top management emphasis and corporate supportive resources directly foster integrated management, and these relations vary between high and low-performance brands.
Abstract: This study explores the role of integrated brand management in China. Using the survey data for 309 brands, our results show that integrated brand management has a positive effect on business performance in China. We also find that top management emphasis and corporate supportive resources directly foster integrated brand management. In addition, the emphasis of top management indirectly affects integrated brand management through reward system. Furthermore, we find that these relations vary between high- and low-performance brands. The implications for transitional economies are discussed.
15 citations
TL;DR: In this article , the impact of the digital economy on the carbon emissions of individual companies and the mediating role of resource allocation in this relationship using data from listed Chinese manufacturing companies between 2011 and 2019 was determined.
Abstract: Many studies have focused on the relationship between the digital economy and carbon emissions at the macro level. However, there is a relative dearth of research on this relationship at the micro level. In this study, we determined the impact of the digital economy on the carbon emissions of individual companies and the mediating role of resource allocation in this relationship using data from listed Chinese manufacturing companies between 2011 and 2019. This analysis yielded three main findings. First, based on firm-level carbon emissions and the borderless organization theory, we found that the digital economy significantly reduced corporate carbon emission intensity. Second, the digital economy reduced resource misallocation and improved resource efficiency, which in turn reduced corporate carbon emission intensity. Third, market drivers and government regulations improved and hindered the ability of the digital economy to reduce corporate carbon emission intensity, respectively. These findings provide evidence for the need for government investment in the development of digital technologies and corporate digitization; the use of digital technologies by businesses to improve resource and energy efficiency; and minimal government regulation of the digital economy in favor of self-regulation through market forces. These measures are important for economic transformation and the achievement of carbon neutrality in emerging developing countries, including China.
15 citations
TL;DR: In this paper, the authors identify an alliance partner's strategic marketing emphasis as a hitherto unrecognized factor determining when managers should follow a more or less restrictive distribution strategy when licensing marketing development rights within technology alliances.
15 citations
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TL;DR: In this paper, the authors identify an alliance partner's strategic marketing emphasis as a hitherto unrecognized factor determining when managers should follow the real options versus bargaining power literature when licensing marketing development rights within technology alliances.
Abstract: Technology alliances create market development rights that are shared between partners in an alliance relative to co-developed product technology. Alliance partners will often manage the shared market development rights in a cooperative manner by forming an agreement in which one partner (i.e., the licensor) licenses its market development rights to the other partner in the alliance (i.e., the licensee). Research from the real options and bargaining power literatures provide opposing recommendations regarding whether a licensor creates greater shareholder value by licensing its market development rights to the licensee on a more or less restrictive basis. Empirical analysis reveals that the restrictiveness by which a firm should license its market development rights to a licensee depends upon the licensee's strategic marketing emphasis. The paper's findings add to the alliance literature by explicating the contribution of market development rights management to value creation in technology alliances. Managerially, the paper identifies an alliance partner's strategic marketing emphasis as a hitherto unrecognized factor determining when managers should follow the real options versus bargaining power literature when licensing marketing development rights within technology alliances.
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TL;DR: A taxonomy and definitions that allow understanding the various coexisting concepts, as well as investigate the implications of strategic alignment for data-driven sustainable performance of firms and supply chains are proposed.
Abstract: The purpose of this paper is to identify, characterize, classify and conceptualize different perspectives on strategic alignment still in use, propose a taxonomy and definitions that allow understanding the various coexisting concepts, as well as investigate the implications of strategic alignment for data-driven sustainable performance of firms and supply chains.,Bibliographic review was used.,The taxonomy proposes two classes of strategic alignment: (1) Align – more rigorous types of alignment: structure alignment, strategic congruence and strategy alignment; (2) Fit – less rigorous types of alignment: contingency strategic adjustment, strategic coalignment and strategic consistency. Companies are accumulating large amounts of data, which relevance varies widely. The strategic alignment can define criteria to select only the data that have strategic value, which restricts the amount of data to be analyzed. Each of the six types of strategic alignment is appropriate for a given situation in companies and/or supply chains.,The limitations stem from the exclusive use of the taxonomy of strategic alignment, without considering the most diverse perspectives of strategy.,Decision makers will be able to identify more objectively which classes of data should be explored in each situation.,Theoretical implications – The taxonomy proposal and the definition of each of the strategic alignment perspectives solve generalized misunderstandings resulting from the lack of a clear delimitation between the perspectives and the conceptual divergence between authors, who use them as equivalent or synonymous.,From 1961 to 2019, no paper was found proposing taxonomy, typology, systematization, ranking, distribution or classification of strategic alignment. The strategic alignment can define criteria to select, within the large amount of data accumulated by the company, only those that have strategic value, what restricts the quantity of data to be analyzed and facilitates the decision of the leaders.
12 citations
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TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.
46,648 citations
Additional excerpts
...Causal ambiguity exists when the relationship between the resources a firm controls and the profits they create are imperfectly understood (Barney, 1991)....
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...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)....
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...A key issue in determining whether a resource can generate profits is whether it is idiosyncratic (Barney, 1991; Mahoney & Pandian, 1992)....
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TL;DR: In this paper, the authors explore the usefulness of analyzing 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.
Abstract: Summary 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.
18,677 citations
Additional excerpts
...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)....
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...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)....
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01 Jan 1998
TL;DR: Porter's concept of the value chain disaggregates a company into "activities", or the discrete functions or processes that represent the elemental building blocks of competitive advantage as discussed by the authors, has become an essential part of international business thinking, taking strategy from broad vision to an internally consistent configuration of activities.
Abstract: COMPETITIVE ADVANTAGE introduces a whole new way of understanding what a firm does. Porter's groundbreaking concept of the value chain disaggregates a company into 'activities', or the discrete functions or processes that represent the elemental building blocks of competitive advantage. Now an essential part of international business thinking, COMPETITIVE ADVANTAGE takes strategy from broad vision to an internally consistent configuration of activities. Its powerful framework provides the tools to understand the drivers of cost and a company's relative cost position. Porter's value chain enables managers to isolate the underlying sources of buyer value that will command a premium price, and the reasons why one product or service substitutes for another. He shows how competitive advantage lies not only in activities themselves but in the way activities relate to each other, to supplier activities, and to customer activities. That the phrases 'competitive advantage' and 'sustainable competitive advantage' have become commonplace is testimony to the power of Porter's ideas. COMPETITIVE ADVANTAGE has guided countless companies, business school students, and scholars in understanding the roots of competition. Porter's work captures the extraordinary complexity of competition in a way that makes strategy both concrete and actionable.
17,979 citations
"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)....
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Book•
01 Jan 1959
TL;DR: In this article, the authors studied the role of large and small firms in a growing economy and found that large firms are more likely to acquire and merge smaller firms in order to increase their size.
Abstract: Introduction Preface 1. Introduction 2. The Firm in Theory 3. The Productive Opportunity of the Firm and the 'Entrepreneur' 4. Expansion Without Merger: The Receding Managerial Limit 5. 'Inherited' Resources and the Direction of Expansion 6. The Economies of Size and the Economies of Growth 7. The Economics of Diversification 8. Expansion Through Acquisition and Merger 9. The Rate of Growth of Firms Through Time 10. The Position of Large and Small Firms in a Growing Economy 11. Growing Firms in a Growing Economy: The Process of Industrial Concentration and the Pattern of Dominance
14,137 citations
Book•
01 Jan 1983
13,643 citations
Additional excerpts
...Barney classified firm resources into three types: physical (Williamson, 1975), human (Becker, 1964), and organizational (Tomer, 1987)....
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...From a transaction-cost-economics perspective, the question is whether the advantages related-diversified firms gain can be just as easily obtained by their competitors as they trade goods and services in an open market (Teece, 1984; Williamson, 1975)....
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