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Journal ArticleDOI

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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Journal ArticleDOI
TL;DR: The obtained findings show that a combination of the relational performance of two dyads contributes to generating the network rent, and thus ensures a more favorable competitive position of supply chains.
Abstract: Purpose The purpose of this paper is twofold. First, the author aims to explore if there is a curvilinear relationship between the network rent, generated as a combination of the relational performance of two dyads and the network profile of the triadic supply chains. Second, the author seek to recognize the ideal network profile, consisting of the properties at the node and relationship level, that provides the highest network rents, and thus enables to increase the competitive advantage of supply chains. Design/methodology/approach The paper opted for an exploratory study using a survey of triads forming supply chains. In order to reveal the capability of yielding the network rent in the examined triads, multiple regression analysis with interaction effects was employed. Having confirmed the existence of supernormal profit, the author investigated the relationship between the network rent and the network index. Finally, a cluster analysis was conducted to compare the network profile in the group of triads generating higher network rents with the cluster yielding relatively lower network rents. Findings The obtained findings show that a combination of the relational performance of two dyads contributes to generating the network rent, and thus ensures a more favorable competitive position of supply chains. The results of the study also indicate that there is a significant curvilinear, inverted U-shaped relationship between the network profile and the competitive advantage of triadic supply chains. In addition, the following network properties appear to be particularly important for yielding higher network rents: network centrality, betweenness, network density and network size. Originality/value The study contributes to the theory by testing if the network rent can be yielded as a combination of the relational performance of two dyads in the triadic supply chains. The research also indicates that there is a curvilinear relationship between the network rent and the network profile of examined supply chains. Moreover, the study also addresses the link between the network profile, consisting of the multiple network properties simultaneously, in relation to the competitive advantage of supply chains.

9 citations

Journal ArticleDOI
TL;DR: The PSE model as discussed by the authors is a new international market entry model, which comprises three interrelated components that reflect premises external and internal to the firm: perceived barriers to entry (P), strategy competence (S), and entry strategy (E).
Abstract: This article presents a new international market entry model—the PSE model. The model comprises three interrelated components that reflect premises external and internal to the firm: perceived barriers to entry (P), strategy competence (S) and entry strategy (E). Propositions about the nature of the linkages between the model components are examined. The model and its linkages are illustrated using Ericsson's entry into the emerging market of mobile telephony systems in the United States. The application of the model enhances our understanding of entry into international emerging markets. Practical suggestions in the application of the model are presented. Copyright © 2002 John Wiley & Sons, Ltd.

9 citations

Journal ArticleDOI
TL;DR: In this paper, the effect of a firm's growth strategy (specialization and diversification) and its specific resources, such as intangible assets and previous experience in the choice of growth method (organic or external) was investigated.
Abstract: Purpose The purpose of this paper is to investigate the effect of a firm's growth strategy (specialization and diversification) and its specific resources, such as intangible assets and previous experience in the choice of growth method (organic or external). Design-methodology-approach The paper analyses 859 external growth arrangements and 1,057 cases of organic growth. A binomial logistic regression is used to test the hypotheses. Findings Results show that firms prefer to grow internally when their growth strategy is specialization, but prefer external growth methods – such as mergers, acquisitions and alliances – when their growth strategy is diversification and they have previous experience in these methods. Research limitations-implications This study applies only to the European case and could be extended to Latin American companies for a comparative analysis. Practical implications This paper may help managers to identify important factors and issues to be considered when deciding upon a growth m...

8 citations


Cites background from "Resource Allocation as an Outcroppi..."

  • ...One position defends the existence of a direct relationship (Chatterjee and Singh, 1999; Harrison et al., 1993), so that strategy and method mutually support each other, while the other position argues that no such relationship exists (Busija et al....

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Journal ArticleDOI
01 Jan 2013
TL;DR: This article found that firms that exhibit uniformly positive or uniformly negative indicators in particular dimensions of CSP outperform firms that exhibited a mixed picture of positives and negatives, which supports the notion that stakeholders’ judgements of CSR reward uniformity.
Abstract: Firms typically present a mixed picture of corporate social performance (CSP), with positive and negative indicators exhibited by the same firm. Thus, stakeholders’ judgements of corporate social responsibility (CSR) typically evaluate positives in the context of negatives, and vice versa. Building on social judgement theory, we present two alternative accounts of how stakeholders respond to such complexity, which provide differing implications for the financial effects of CSP: reciprocal dampening and rewarding uniformity. Echoing notable findings on strategic consistency, our US panel study finds that firms that exhibit uniformly positive or uniformly negative indicators in particular dimensions of CSP outperform firms that exhibit a mixed picture of positives and negatives, which supports the notion that stakeholders’ judgements of CSR reward uniformity.

7 citations

Book ChapterDOI
26 Nov 2017

7 citations

References
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Book ChapterDOI
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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Journal ArticleDOI
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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