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...
Citations
More filters
TL;DR: This work uses meta-analytic structural equation modeling to aggregate evidence from 255 samples involving 111,614 observations to answer outstanding research questions regarding the strategic resources–actions–performance pathway, and shows strong complementarity and interdependence between their logics.
37 citations
TL;DR: In this paper, a review and critical assessment of the research reveals a number of conceptual issues and methodological flaws that had already constrained heavily traditional diversification research, and suggests promising directions for future research efforts that can put this important empirical application of the resource-based view of the firm on safer ground.
Abstract: After more than 20 years of empirical research, the resource-based view of the multibusiness firm has emerged as a promising paradigm for explaining diversification success—one of the most investigated research questions within the field of strategic management. However, because various dimensions of resource-relatedness, synergistic effects, and moderating influences are investigated at diverse levels of analysis, the findings are very fragmented. Our review and critical assessment of the research reveals a number of conceptual issues and methodological flaws that had already constrained heavily traditional diversification research. Consequently, we suggest promising directions for future research efforts that can put this important empirical application of the resource-based view of the firm on safer ground.
36 citations
TL;DR: In this paper, the authors focus on how combinations of internal resources affect the survival chance of technology-based start-ups by using a unique dataset from a high-tech park in Beijing, China.
Abstract: Although various streams in the existing literature on the resource-based view (RBV) of the firm argue that firm survival and performance can benefit from a combined use of internal resources, relatively limited empirical evidence is provided that supports this argument. To fill this gap in the literature, in this article, we focus on how combinations of internal resources affect the survival chance of technology-based start-ups by using a unique dataset from a high-tech park in Beijing, China. Empirical results show that firms’ interconnected internal resources exert a significant influence on these firms’ survival chance. Our findings imply that the survival of new technology-based start-ups benefits from the synergetic effect of combining resources. In detail, the data support the hypothesis that the combined use of R&D resources, internal financial resources, and scientifically skilled employees, as posited by the RBV, has an amplifying effect on the chances to survive of high-tech start-ups.
33 citations
[...]
01 Jan 2010
TL;DR: M@n@gement is a double-blind refereed journal where articles are published in their original language as soon as they have been accepted.
Abstract: Copies of this article can be made free of charge and without securing permission, for purposes of teaching, research, or library reserve. Consent to other kinds of copying, such as that for creating new works, or for resale, must be obtained from both the journal editor(s) and the author(s).M@n@gement is a double-blind refereed journal where articles are published in their original language as soon as they have been accepted.For a free subscription to M@n@gement, and more information:http://www.management-aims.com© 2012 M@n@gement and the author(s).
28 citations
References
More filters
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)....
[...]
...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)....
[...]
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)....
[...]
...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)....
[...]
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)....
[...]
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)....
[...]
...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)....
[...]