Resources and capabilities’ effects on firm performance: what are they?

2017 ◽  
Vol 21 (5) ◽  
pp. 1202-1217 ◽  
Author(s):  
João Ferreira ◽  
Cristina Fernandes
Keyword(s):  
Firm Performance ◽  
Competitive Advantage ◽  
Business Strategy ◽  
Quantitative Research ◽  
Industrial Sector ◽  
Future Research ◽  
Resource Value ◽  
Performance Levels ◽  
Content Type ◽  
Resources And Capabilities

Purpose The purpose of this paper is to empirically examine the moderating effect of competitive advantage on the resource value and rareness combination and firm performance. Design/methodology/approach The authors adopted a quantitative research method to achieve the aims of this study. The data collected came from a sample of footwear firms and the hypotheses assessed by multivariate analysis. Findings The findings provide insights into previously inconsistent findings regarding the exploitation of resources and capabilities and contribute to resolving these issues by considering the conditions under which the resource value and rareness combination contributes to firm performance levels and the effects of competitive advantage on this relationship. Interestingly, the authors find that it cannot be inferred that the rarer the resources and capabilities combination, the greater the probability of attaining competitive advantage. Research limitations/implications As limitations, the authors would highlight the fact that the results are specific to one particular industrial sector, and thus not susceptible to the drawing of generalisations as well as the fact that the study does not make recourse to triangulating its methodology (for example, through interviews), which would generate more precise, detailed and objective information. The findings have important managerial implications and the authors close by presenting future research directions. Originality/value This study offers an explanation for previous mixed findings on the relationship between the resource value and rareness combination and firm performance and makes a contribution regarding how such combinations are of great relevance to the organisation and business strategy to turn in better performance levels.

Resources, capabilities and competitive advantage of minor export crops farms in Sri Lanka

2018 ◽  
Vol 28 (5) ◽  
pp. 478-502 ◽  
Author(s):  
Vilani Sachitra ◽  
Siong-Choy Chong
Keyword(s):  
Sri Lanka ◽  
Competitive Advantage ◽  
Dynamic Capabilities ◽  
Process Management ◽  
Relationship Building ◽  
Future Research ◽  
Content Type ◽  
Resources And Capabilities ◽  
Physical Assets ◽  
Export Crops

Purpose The agribusiness sector has long been acknowledged as a major source of livelihood to many people in developing countries. Hence, determining the resources and capabilities influencing farm-level competitive advantage are vital to better understand and formulate appropriate strategies to increase the competitiveness ofminor export crops farms. This study aims to understand of the link between resources-capabilities-competitive advantage for appropriate measures to be recommended to enhance the competitive position of the smallholding farms. Design/methodology/approach This study adopts the resource-based view in combination with dynamic capabilities. The scope comprises owners of farms who possess experience in commercial cultivation of minor export crops in Sri Lanka. A self-administrated structured questionnaire was used to collect data. Findings Based on the responses from 456 farm owners, results of the multiple regression analysis indicate that variables representing resources such as human assets, physical assets, financial assets, institutional capital, collective action and entrepreneurial identity; and dynamic capabilities such as organisational learning, relationship building, quality management and marketing are significantly associated with competitive advantage of the minor export crops farms. Reputation and farm process management capability are the only two insignificant variables. Taken together, the resources and dynamic capabilities investigated explain 89.3 per cent of the variation in competitive advantage, in which 82 per cent is contributed by resources. Originality/value The findings provide useful insights not only in terms of understanding the link between resources, dynamic capabilities and competitive advantage but also how resources and capabilities can be channelled and leveraged to bring about competitive advantage to the minor export crops farms. Theoretical and practical implications as well as future research directions are provided.

Power, resource dependencies and capabilities in intercultural B2B relationships

2018 ◽  
Vol 32 (5) ◽  
pp. 629-642 ◽  
Author(s):  
Ashish Malik ◽  
Liem Viet Ngo ◽  
Russel P.J. Kingshott
Keyword(s):  
Firm Performance ◽  
Relationship Quality ◽  
Resource Dependence ◽  
Theory And Practice ◽  
Offshore Outsourcing ◽  
Future Research ◽  
Design Data ◽  
Content Type ◽  
B2b Relationships ◽  
Resources And Capabilities

PurposeThis exploratory study aims to analyse the influence of organisational resources and capabilities on relationship quality and firm performance in the context of high-technology offshore outsourcing service vendors.Design/methodology/approachUsing a qualitative case study design, data from four offshore business process and information technology outsourcing firms were analysed.FindingsFindings highlight that resource dependence, cultural orientation and the vendor’s resources and capabilities strengthen relationship quality and affect firm performance.Originality/valueThe distinctive contribution of this study lies in identifying key organisational mechanisms that improve relationship quality and firm performance, as well as help to understand the adverse effects of ethnocentricity and power faced by vendors and subsidiaries within diverse intercultural contexts. Study limitations and future research directions, along with implications for theory and practice, are also discussed.

Better value chains: a matrix for competitive advantage

2014 ◽  
Vol 35 (5) ◽  
pp. 43-48 ◽  
Author(s):  
Conrad den Hertog
Keyword(s):  
Competitive Advantage ◽  
Value Chain ◽  
Business Strategy ◽  
Senior Management ◽  
Business Strategies ◽  
Value Chains ◽  
Future Research ◽  
Business Unit ◽  
Content Type ◽  
Business Units

Purpose – The purpose of this paper is to present a new and comprehensive business strategy matrix which can be used to create competitive advantage for the value chain of every business unit of any firm. Design/methodology/approach – This paper reviews the key findings of several well-known papers within the value chain literature and then adds several new conceptual insights to step by step create a logically developed, business strategy matrix featuring four strategy choices. Findings – This paper presents the four business strategy choices of competitive value chains, based on the business strategies of innovative quality, lean cost, agile delivery and attentive service. Research limitations/implications – A future research implication of this paper is to empirically test the financial benefits for producers of custom products, of applying agile delivery as a key business strategy. Practical implications – This paper provides the senior management of each business unit of any firm, with a clear guide to defining an optimal business strategy. Social implications – This paper is intended to advance the practice of business strategy by senior management, to enhance customer value across all business units. Originality/value – This paper expands upon existing business strategy models by providing a comprehensive business strategy matrix, which can be applied to all possible business units. It does this by building upon current best practice to demonstrate that next to innovative quality, lean cost and attentive service strategies, an agile delivery strategy is required in the case of custom products.

Assessment of manufacturing flexibility

2014 ◽  
Vol 37 (8) ◽  
pp. 750-776 ◽  
Author(s):  
Ruchi Mishra ◽  
Ashok K. Pundir ◽  
L. Ganapathy
Keyword(s):  
Systematic Review ◽  
Firm Performance ◽  
Literature Review ◽  
Business Strategy ◽  
Technology Innovation ◽  
Future Research ◽  
Manufacturing Flexibility ◽  
Research Papers ◽  
Content Type ◽  
Organizational Attributes

Purpose – The purpose of this study is to present a systematic review of all the enablers of manufacturing flexibility and to provide a path for future research in the area of manufacturing flexibility. Design/methodology/approach – Research papers were collected from electronic databases to search academic journals dealing with manufacturing flexibility, environmental uncertainty, business strategy, organizational attributes, technology, innovation and product types. The study consists of a systematic review of 101 research papers and assessment of these papers in terms of their role in enabling flexibility. Findings – It is seen from the literature review that most of the research in the field of flexibility was done in developed countries, and further empirical research with respect to manufacturing flexibility and firm performance is required to be done in developing countries. It is also seen that financial performance has often been used in many of the studies as a proxy to measure firm performance and one can explore alternative metrics for firm performance. The review reveals that an integrated framework to assess manufacturing flexibility and firm performance is largely missing in literature. This review highlights some research gaps for future research in the area of manufacturing flexibility. Research limitations/implications – The literature review was done using search terms restricted to manufacturing flexibility, environmental uncertainty, business strategy, organizational attributes, technology, innovation and product types. There may be various unexploited areas for future research in terms of indirect influence of several different variables. The proposed framework is only conceptual in nature and thus requires rigorous empirical testing to develop a comprehensive list of enablers and their respective criteria and attributes. Originality/value – The study synthesizes existing literature for assessing manufacturing flexibility in an organization and addresses gaps in the research area of manufacturing flexibility. It provides a comprehensive review of all relevant studies from 1992 to January 2013 for the use of both academicians and practitioners.

The relationship between MNCs’ strategies and executive staffing

2017 ◽  
Vol 25 (2) ◽  
pp. 233-250 ◽  
Author(s):  
Sangeetha Lakshman ◽  
C. Lakshman ◽  
Christophe Estay
Keyword(s):  
International Business ◽  
Business Strategy ◽  
Global Strategy ◽  
Business Strategies ◽  
Future Research ◽  
Research Approach ◽  
Global Integration ◽  
Content Type ◽  
Managerial Implications ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship of business strategies with executive staffing of multinational companies (MNCs). Design/methodology/approach Based on in-depth interviews conducted with top executives of 22 MNCs’, the authors identify important connections between international business strategies and staffing orientation. The authors used the qualitative research approach of building theory from interviews; thus, creating theoretical propositions from empirical evidence. Findings The authors find that when the pressure for global integration is high, MNCs use more parent-country national (PCNs) (ethnocentric staffing) as against the use of host-country managers (HCNs) (polycentric staffing) when this pressure is low. Additionally, MNCs using a global strategy are more likely to use an ethnocentric staffing approach, those using a multi-domestic strategy use a polycentric approach and firms using transnational strategy adopt a mix of ethnocentric and polycentric approaches. Research limitations/implications Although the authors derive theoretical patterns based on rich qualitative data, their sample is relatively small and comprises mostly of French MNCs. Generalizability to a broader context is limited. However, the authors’ findings have critical implications for future research. Practical implications The authors’ findings provide critical managerial implications for MNCs in matching their HR strategies with business strategies. These are important for effective strategy implementation. Originality/value Although MNC staffing orientations have been studied for a long time, their relationship to international business strategies is still not clearly understood. The authors contribute to the literature by investigating the relationship between MNCs’ business strategy types with staffing orientations.

Determinants of the firm performance of returnee entrepreneurs in Somalia: the effects of external environmental conditions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed-Abdullahi Mohamed ◽  
Asmat-Nizam Abdul-Talib ◽  
AfifahAlwani Ramlee
Keyword(s):  
Firm Performance ◽  
Conceptual Framework ◽  
Empirical Studies ◽  
Theoretical Background ◽  
Future Research ◽  
African Countries ◽  
Content Type ◽  
Somali Diaspora ◽  
Post Conflict ◽  
Perceived Environmental Uncertainty

Purpose This study aims to examine the role of returning Somali diaspora entrepreneurs on firm performance and their perceived environmental obstacles. Design/methodology/approach The paper draws on a broad literature review and covers a theoretical background to develop a research framework. It presents several propositions to be empirically tested to determine the influence of returnee entrepreneurs’ success and the challenges they face in the process. Findings The paper offers an overview of how Somali diaspora returnee entrepreneurs can use their resources to succeed in their business and the possible environmental uncertainties that could hinder them. The study highlights some under-researched areas and provides future research directions. Research limitations/implications A research investigation is needed to test the proposed conceptual framework empirically. Further research is also recommended to use other predictors when investigating the perceived environmental uncertainty faced by returnee entrepreneurs. Practical implications In the diaspora entrepreneurship literature, returnee entrepreneurs in post-conflict African countries did not get enough attention. Hence, the study will contribute theoretically to the literature. Originality/value The paper provides a conceptual framework that will help understand returnee entrepreneurs in post-conflict states in Africa, paving the way for empirical studies on the topic.

Small firm performance: an empirical analysis in Malaysian housing construction industry

2017 ◽  
Vol 10 (1) ◽  
pp. 50-65 ◽  
Author(s):  
Rosman Mahmood ◽  
Ahmad Suffian Mohd Zahari ◽  
Najihah Marha Yaacob ◽  
Sakinah Mat Zin
Keyword(s):  
Firm Performance ◽  
Small Firm ◽  
Business Strategy ◽  
Small Firms ◽  
Growth Potential ◽  
Construction Sector ◽  
Internal Factors ◽  
Content Type ◽  
Entrepreneurial Capital ◽  
And Training

Purpose The purpose of this paper is to evaluate the importance of innovation for the performance of small firms in the construction sector. Furthermore, this paper also examines the influence of several factors related to entrepreneurial capital (entrepreneurial value, business strategy, experience and training) on small firm performance in the sector. Design/methodology/approach This study uses primary data of 255 small firms in the construction sector under the category of small contractors (G1). Stratified sampling method was utilized for data collection, which is then analyzed using the descriptive and multiple regression analysis to achieve the objectives of the study. Findings The findings showed that the factor of innovation and several factors related to entrepreneurial capital (entrepreneurial value, business strategy and business experience) have a significant positive relationship with the performance of small firms in the construction sector. However, factor of training indicated a significant negative correlation with small firm performance. Research limitations/implications Although this study found a significant impact in explaining the factors that affect performance, particularly in the construction sector, it only takes into account only some internal factors (entrepreneurial capital and innovation). Proposed future research should consider a variety of other factors mainly related to external factors, such as economic development, growth potential, industry structure, internal social capital and government policy. Practical implications This study provides clear implications related to the theory and contributions to the literature related to research in the construction sector. The study also provides invaluable insightfulness to various stakeholders including policy makers, institutional support and small contractors about the importance of innovation and entrepreneurial capital in determining the performance of small firms in the sector. Originality/value The results provide supportive evidence that entrepreneurial values and business strategy are important internal factors in determining the performance of a firm, which is consistent with the theory of resource-based view. Experience and training factors, as indicators of firm performance, are articulated in the theory of human capital. Hence, the findings not only can strengthen both the theories but also make a significant contribution to the literature of the study, particularly in the construction sector.

Bridging and bonding: having a Muslim diversity on corporate boards and firm performance

2018 ◽  
Vol 9 (3) ◽  
pp. 457-478 ◽  
Author(s):  
Rohail Hassan ◽  
Maran Marimuthu
Keyword(s):  
Firm Performance ◽  
Muslim Women ◽  
Listed Companies ◽  
Future Research ◽  
Small Scale ◽  
Extensive Literature ◽  
Corporate Boards ◽  
Demographic Diversity ◽  
Content Type ◽  
Diversity Issues

PurposeThis paper aims to examine the demographic diversity at top-level management and its impact on the performance of Malaysian-listed companies. In addition, Muslim diversity on corporate boards is examined. Design/methodology/approachAlthough many organisations aspire to be socially diverse, diversity’s consequences for organisational performance remain unclear. This study specifies the whole distinct mechanism and measures it independently, bridging as the demographic diversity among the board of directors (BODs) and bonding as the firm’s financial performance. To maintain the homogeneity factor, the empirical analysis has been confined to 12 fully fledged sectors and 529 Malaysian listed firms out of 798 firms selected on the basis of judgmental sampling during the period of 2013. The paper applies the correlation matrix and linear regression model to justify this phenomenon. FindingsThe empirical findings suggest that gender diversity (Muslim and Non-Muslim women) is positively significant with firm performance with regards to management, shareholders and market perspectives. It means that both Muslim and non-Muslim women are contributing to firm performance. Ethnic diversity (minority) and Muslim diversity (majority) have no impact on firm performance. On the other hand, interaction variables are positively significant with firm performance. It means that majority and minorities are essential for corporate boards to produce a greater performance. Research limitations/implicationsFuture research could include more variables such as director’s age profile and foreign participation as well as other types of diversities, such as cognitive diversity and corporate diversity. In addition, another possible extension could be the investigation of diversity issues between small scale and large or high and low-profit firms. The findings provide insightful information to firms, as this study suggests that the diverse corporate boards can enhance firm performance. Originality/valueIn recent years, diversity issues have been examined with regard to firm performance of the listed companies. Whilst extensive literature exists on diversity issues, this issue is still under debate and has had inconsistent results. The paper attempts to fill the gap in the existing literature, discuss the empirically diverse corporate boards with the interaction approach and impact on the firm performance.

Does deal size moderate the effects of board faultlines? Evidence from acquisitions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Tidbury ◽  
Steven F. Cahan ◽  
Li Chen
Keyword(s):  
Fixed Effects ◽  
Quantitative Research ◽  
Future Research ◽  
Research Approach ◽  
Strategic Decisions ◽  
Negative Effects ◽  
Content Type ◽  
Instrumental Variable Analysis

Purpose Board faultlines, which reflect intrinsic divisions of board members into relatively homogeneous subgroups, are associated with poor firm performance. This paper aims to extend the existing board faultline research by examining how acquisition deal size moderates the negative implications of board faultlines. Design/methodology/approach This paper uses a sample of acquisitions and a quantitative research approach to conduct statistical analysis. Findings Using a sample of acquisitions announced between 2007 and 2016, this paper finds evidence suggesting that strong faultlines are associated with poorer acquisition outcomes in the long-term, but not in the short term. Further, this paper finds that the effect of faultline strength on long-term acquisition outcomes is weaker for larger acquisition deals than smaller acquisition deals. The findings are consistent with deal size moderating the relation between faultlines and acquisition outcomes. Research limitations/implications This paper addresses possible endogeneity through firm fixed effects and instrumental variable analysis. Although this paper provides evidence on the moderating role of deal size in the context of faultlines, future research could examine the role of additional moderators, such as pro-diversity, trust, board leadership and board and task characteristics. Practical implications The findings suggest that boards need to be aware of situations where the negative effects of faultlines are more likely to come to the fore. For example, faultlines are more likely to play a role in more routine, obscure monitoring than for high-profile strategic decisions. Originality/value The study is multidisciplinary as it draws on the management, organizational behaviour and psychology and finance literature. It contributes to the developing literature on faultlines in several important ways. First, this paper supports their view that faultlines have adverse effects on board performance by showing that faultlines negatively impact discrete strategic investment decisions. Second, this paper provides evidence that deals size moderates the faultline-acquisition performance relation, indicating that the role of faultlines is contextual. Third, this paper finds evidence that suggests investors do not factor in board faultlines when responding to acquisition announcements.

Learning in multi-team systems: a qualitative study of learning triggers, readiness to learn and learning processes

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Valerie I. Sessa ◽  
Jessica L. Francavilla ◽  
Manuel London ◽  
Marlee Wanamaker
Keyword(s):  
Case Studies ◽  
Learning Process ◽  
Adaptive Learning ◽  
Quantitative Research ◽  
Participant Observation ◽  
Learning Processes ◽  
Future Research ◽  
Content Type ◽  
First Case ◽  
Readiness To Learn

Purpose Multi-team systems (MTSs) are expected to respond effectively to complex challenges while remaining responsive and adaptable and preserving inter-team linking mechanisms. The leadership team of an MTS is expected to configure and reconfigure component teams to meet the unique needs of each situation and perform. How do they learn to do this? This paper, using a recent MTS learning theory as a basis, aims to begin to understand how MTSs learn and stimulate ideas for future research. Design/methodology/approach The authors use two case studies to address research questions. The first case was a snapshot in time, while the second case occurred over several months. Interviews, documents and participant observation were the data sources. Findings As suggested by theory, findings support the idea that learning triggers, the timing of the triggers and readiness to learn (RtL) affect the type of learning process that emerges. The cases showed examples of adaptive and generative team learning. Strong and clear triggers, occurring during performance episodes, led to adaptive learning. When RtL was high and triggers occurred during hiatus periods, the associated learning process was generative. Originality/value Using an available theoretical model and case studies, the research describes how MTS readiness to learn and triggers for learning affect MTS learning processes and how learning outcomes became codified in the knowledge base or structure of the MTS. This provides a framework for subsequent qualitative and quantitative research.

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