Resource-Based Theory and the Value Creation Framework

2021 ◽  
pp. 014920632110216
Author(s):  
Jay B. Barney ◽  
David J. Ketchen ◽  
Mike Wright
Keyword(s):  
Firm Performance ◽  
Value Creation ◽  
Economic Value ◽  
Theory Of The Firm ◽  
Essential Elements ◽  
Dependent Variables ◽  
Managerial Implications ◽  
Definition Of ◽  
Resource Based Theory

This article explains how viewing resource-based theory within Brandenburger and Stuart’s value creation framework adds clarity to the theory as a whole and to its essential elements including the definition of its dependent variables, its approach to value creation, and its approach to the appropriation of economic value. Building on this foundation, the article addresses several questions about resource-based theory: Is it a theory or a view? Is resource-based theory tautological? Is resource-based theory static? How important are stakeholders within resource-based theory? Does resource-based theory constitute a theory of the firm? Does resource-based theory acknowledge industry structure’s role in explaining firm performance? Does resource-based theory incorporate uncertainty? Does resource-based theory have strong managerial implications? In accomplishing these tasks, the article sets the stage for the further evolution and application of resource-based theory.

scholarly journals MARKETING PERFORMANCE MEASUREMENT: MARKETING METRICS IN TURKISH FIRMS

2013 ◽  
Vol 14 (Supplement_1) ◽  
pp. S413-S432 ◽  
Author(s):  
Gungor Hacioglu ◽  
Osman Gök
Keyword(s):  
Firm Performance ◽  
Economic Value ◽  
Value Added ◽  
Future Research ◽  
Marketing Metrics ◽  
Marketing Performance ◽  
Customer Lifetime ◽  
Sectoral Differences ◽  
Managerial Implications ◽  
The Relationship

This study explores which metrics are considered important in measuring marketing performance in Turkish firms. In addition, the study examines the effects of sectoral differences and market dynamism, and the relationship between the importance attached to metrics and firm performance. The data collected from a sample of 145 Turkish firms via a structured questionnaire derived from the literature reveals that the most importance is attached to consumers’ attitudes metrics. Economic value added and customer lifetime value are the least important metrics in performance evaluation. No significant relationship occurs between the importance that executives attach to metrics and firm performance. Managerial implications and future research opportunities will be presented at the end. The study is, as far as is known, the first attempt at aiming to explore marketing metrics in Turkey, and one of a limited number of studies in emerging economies.

Conceptualizing Corporate Entrepreneurship Capability and Its Linkages Towards Firm Performance

2020 ◽  
pp. 1771-1796
Author(s):  
Rohit Kumar ◽  
Amit Kumar
Keyword(s):  
Firm Performance ◽  
Business Model ◽  
Empirical Studies ◽  
Theory Of The Firm ◽  
Corporate Entrepreneurship ◽  
Business Model Innovation ◽  
Exploration And Exploitation ◽  
Organizational Capability ◽  
Theoretical Contribution ◽  
Resource Based Theory

The practices facilitating Corporate Entrepreneurship Capability (CEC), an intangible organizational capability embedded in an enterprise's culture are particularly important to innovation. The existing literature suggest the important of combining practices, however, there is a distinct lack of theoretical as well as empirical studies that have explored how these practices work together to promote and facilitate CEC. While different alternatives to realize the simultaneous reconciliation of exploration and exploitation have been proposed, how organizations build CEC is not fully understood. In this chapter, the authors first define CEC and then explain its relationship with Business Model Innovation (BMI), Innovation Ambidexterity (IA) and firm performance. The chapter is a theoretical contribution and builds on the Schumpeter view on entrepreneurship and innovation, resource-based theory of the firm and corporate entrepreneurship literature. The authors have suggested alternate contingency models for testing relationships among CEC, BMI, IA and Firm Performance.

Conceptualizing Corporate Entrepreneurship Capability and Its Linkages Towards Firm Performance

2020 ◽  
pp. 214-239
Author(s):  
Rohit Kumar ◽  
Amit Kumar
Keyword(s):  
Firm Performance ◽  
Business Model ◽  
Empirical Studies ◽  
Theory Of The Firm ◽  
Corporate Entrepreneurship ◽  
Business Model Innovation ◽  
Exploration And Exploitation ◽  
Organizational Capability ◽  
Theoretical Contribution ◽  
Resource Based Theory

The practices facilitating Corporate Entrepreneurship Capability (CEC), an intangible organizational capability embedded in an enterprise's culture are particularly important to innovation. The existing literature suggest the important of combining practices, however, there is a distinct lack of theoretical as well as empirical studies that have explored how these practices work together to promote and facilitate CEC. While different alternatives to realize the simultaneous reconciliation of exploration and exploitation have been proposed, how organizations build CEC is not fully understood. In this chapter, the authors first define CEC and then explain its relationship with Business Model Innovation (BMI), Innovation Ambidexterity (IA) and firm performance. The chapter is a theoretical contribution and builds on the Schumpeter view on entrepreneurship and innovation, resource-based theory of the firm and corporate entrepreneurship literature. The authors have suggested alternate contingency models for testing relationships among CEC, BMI, IA and Firm Performance.

scholarly journals Unpacking Hybrid Organizing in a Born Green Entrepreneurial Company

2021 ◽  
Vol 13 (20) ◽  
pp. 11353
Author(s):  
Jay Sheppard ◽  
Maral Mahdad
Keyword(s):  
Firm Performance ◽  
Value Creation ◽  
Economic Value ◽  
Theory And Practice ◽  
Social Value ◽  
Hybrid Organizations ◽  
Structured Interviews ◽  
Dynamic Relationship ◽  
Hybrid Organizing ◽  
Entrepreneurial Company

The role green businesses can play in a transition to a more sustainable society is an emergent area of questioning that has attracted the attention of both environmental and business academics. Different disciplines have contributed to a growing base of literature, yet a few key gaps exist, such as how green companies balance economic and environmental concerns and how green businesses operate as hybrid organizations. Utilizing ethnographic tools including observations and semi-structured interviews, this study closely analyses a born green company. The study attempts to identify how the green entrepreneurial company creates and captures environmental, economic, and social value as well as how these three types of value are interrelated. The study refrains from economic quantification of environmental and social value, instead focusing on identifiable instances of value creation and capture. This is conducted out of a recognition of non-substitutability concerns to give equal footing to different forms of value, therefore, avoiding some of the economic biases present in previous research. It is suggested that environmental and economic value can have a complementing or competing relationship depending on how the business uses its resources. A four-stage model is proposed, highlighting how this reflexive and dynamic relationship can influence firm performance. The potential benefits of social value creation by green businesses are identified as an overlooked and under-researched area that could have a significant impact on firm performance. Built on the nexus of hybrid organizations and green entrepreneurship, this study contributes to theory and practice by unpacking hybrid ways of creating and capturing value.

Conceptualizing Corporate Entrepreneurship Capability and Its Linkages Towards Firm Performance

2018 ◽  
pp. 12-36
Author(s):  
Rohit Kumar ◽  
Amit Kumar
Keyword(s):  
Firm Performance ◽  
Business Model ◽  
Empirical Studies ◽  
Theory Of The Firm ◽  
Corporate Entrepreneurship ◽  
Business Model Innovation ◽  
Exploration And Exploitation ◽  
Organizational Capability ◽  
Theoretical Contribution ◽  
Resource Based Theory

The practices facilitating Corporate Entrepreneurship Capability (CEC), an intangible organizational capability embedded in an enterprise's culture are particularly important to innovation. The existing literature suggest the important of combining practices, however, there is a distinct lack of theoretical as well as empirical studies that have explored how these practices work together to promote and facilitate CEC. While different alternatives to realize the simultaneous reconciliation of exploration and exploitation have been proposed, how organizations build CEC is not fully understood. In this chapter, the authors first define CEC and then explain its relationship with Business Model Innovation (BMI), Innovation Ambidexterity (IA) and firm performance. The chapter is a theoretical contribution and builds on the Schumpeter view on entrepreneurship and innovation, resource-based theory of the firm and corporate entrepreneurship literature. The authors have suggested alternate contingency models for testing relationships among CEC, BMI, IA and Firm Performance.

Moderating Effect of Access to Finance and Competitive Environment on Human Capital, Knowledge Management, Market Orientation and SMES Performance

2020 ◽  
Vol 11 (1) ◽  
pp. 105-105
Author(s):  
Mohd Noor Mohd Shariff ◽  
Khansa Masood ◽  
Halim Mad Lazim
Keyword(s):  
Human Capital ◽  
Knowledge Management ◽  
Firm Performance ◽  
Market Orientation ◽  
Competitive Environment ◽  
Leather Industry ◽  
Access To Finance ◽  
Economic Development And Growth ◽  
Dependent Variables ◽  
The Relationship

Small and medium enterprises (SMEs) are considered as foundation stones of economic development and growth of any economy (Centobelli, Cerchione, & Esposito, 2019). Performance of SMEs is of fundamental significance for all developed as well as developing nations. Similarly, Pakistan is no exception to aforementioned fact. The economic development and growth of Pakistan depend on the performance of SMEs to a great extent. Like, most countries in the world, SMEs comprise more than 90% of total business entities in Pakistan (Degong et al., 2018; Waqas & Nawaz, 2019) and leather industry in one that is attracted by the researchers of present study. Constraints in the growth of leather industry of Pakistan include, lack of skilled human capital, rising cost of production, lack of modern-day knowledge about new products and processes, low profitability and lack of capability to penetrate into international markets, lack of market research, access to finance, intensive competitive rivalry (Khalique et al., 2011; Daily Times, 2016, Awan et al., 2019). Few studies have revealed mixed findings regarding the relationship between knowledge management and firm performance and there is abundance of literature that demonstrates the presence of significant and positive relationship between Market Orientation and Firm performance (Slater & Narver , 1995; Baker & Sinkula, 2009; Udriyah, Tham, & Azam, 2019). On the other hand, some studies have argued that there is no direct and significant relationship between Market Orientation and Firm Performance (Polat & Mutlu, 2012; Shehu & Mahmood, 2014). Moreover, keeping in view the mixed and inconclusive findings regarding the relationship between cause and effect variables, it is appropriate to introduce moderating variables that can significantly influence the relationship between independent and dependent variables as recommended by Baron and Kenny (1986). Access to Finance and Competitive Environment can be served as prospective moderators which are quite appropriately related to proposed variables of the study (Prajogo & Oke, 2016; Rogo et al., 2016; Jaworski & Kohli, 1993) which are quite appropriately related to selected variables of the study. Thus, the research problem expressed that "Access to finance and competitive environment can potentially moderates and affect the relationship between independent and dependent variables. Hence, based on the past literature and aforementioned discussion, the present study intended to examine the moderating effects of Access to Finance and Competitive Environment on the Relationship between Human Capital, Knowledge Management, Market Orientation and SMEs Performance in Leather Industry of Pakistan". Keywords: Small medium enterprise, performance, access to finance, competitive environment

CONCEPT OF THE IMPROVEMENT OF A KEY PUBLIC SPACE (USING THE EXAMPLE OF «ALLEY OF ARCHITECTS», VORONEZH)

2020 ◽  
pp. 97-109
Author(s):  
С. Л. Подвальный ◽  
О. А. Сотникова ◽  
Я. А. Золотухина
Keyword(s):  
Urban Environment ◽  
Public Space ◽  
Large Scale ◽  
Economic Value ◽  
Ecological Condition ◽  
Territory Design ◽  
Definition Of ◽  
The City ◽  
Modern Technologies ◽  
Intensive Growth

Постановка задачи. В настоящее время формирование современной комфортной городской среды приобретает особое социально-экономическое значение и выдвигается в число приоритетных государственных масштабных программ. В связи с этим необходимо разработать концепцию благоустройства ключевого общественного пространства, а именно: определить основные и сопутствующие функции данной территории, создать эскизное предложение проекта благоустройства с учетом всех необходимых норм и стандартов, внедрить современные технологии. Результаты. Выполнен эскизный дизайн-проект «Аллеи архитекторов» по ул. Орджоникидзе г. Воронеж, включающий в себя основные элементы по зонированию территории, проектированию акцентных объектов и внедрению инновационных технологий «умного города», позволяющих повысить уровень комфорта горожан. Выводы. Благоустройство населенных мест приобретает особое значение в условиях дискомфорта среды. С выполнением комплекса мероприятий, направленных на благоустройство, и с внедрением современных технологий значительно улучшается экологическое состояние, внешний облик города. Оздоровление и модернизация среды, которая окружает человека в городе, благотворно влияет на психофизическое состояние, что особенно важно в период интенсивного роста городов. Statement of the problem. Currently the formation of the modern comfortable urban environment is gaining a special social and economic value and moving forward in the priorities of state large-scale programs. The purpose of development of the concept of improvement of public space is definition of the main and accompanying functions of this territory, design of the outline offer of the project of improvement considering all necessary norms and standards and implementation of modern technologies. Results. The conceptual project of “Alley of Architects” includes the basic elements of territory zoning, design of accent objects and implementation of technologies of a “smart-city”. These elements allow one to increase the level of comfort of inhabitants. Conclusions. Improvement of the inhabited places is of particular importance in the conditions of discomfort of the environment. Carrying out a complex of the actions directed to gardening and improvement, introducing modern technologies, the ecological condition, the physical appearance of the city considerably improves. Improvement and modernization of the environment which surrounds the person in the city influences a psychophysical state well that especially important during intensive growth of the cities.

ECOLOGICAL AND ECONOMIC EFFECTIVENESS OF USE LAND IN CONDITIONS OF INFRINGEMENT OF INSTITUTIONAL TRANSFORMATIONS

2018 ◽  
pp. 58-61
Author(s):  
Oksana Sakal
Keyword(s):  
Land Use ◽  
Social Welfare ◽  
Agricultural Land ◽  
Economic Value ◽  
Economic Effectiveness ◽  
Land User ◽  
Total Economic Value ◽  
Definition Of ◽  
Welfare Theory

The article is devoted doctrinal issues of environmental and economic effectiveness of use land in conditions of infringement of institutional transformations. The modern approaches to the definition of content of ecological and economic effectiveness of land use are analyzed. It is established that the overwhelming majority of domestic researchers interpret this notion regarding the use of agricultural land or farm land. It is proved that such an approach is justified, taking into account the structure of the land fund of Ukraine. However, this reduces other goals of the land user and functions of the land. It is proposed to investigate the category of ecological and economic effectiveness of land use in accordance with the provisions of the ecological economics, social welfare theory, and concept of total economic value. Based on the classification of land functions, the criteria of selection material content and social form of ecological and economic effectiveness of land use are determined.

Financial institutions mergers: a strategy choice of wealth maximisation and economic value

2020 ◽  
Vol 12 (4) ◽  
pp. 495-529
Author(s):  
Mohamad Hassan ◽  
Evangelos Giouvris
Keyword(s):  
Credit Risk ◽  
Event Study ◽  
Financial Institutions ◽  
Value Creation ◽  
Economic Value ◽  
Abnormal Returns ◽  
Study Analysis ◽  
Event Window ◽  
Content Type ◽  
Merger Announcement

Purpose This study Investigates Shareholders' value adjustment in response to financial institutions (FIs) merger announcements in the immediate event window and in the extended event window. This study also investigates accounting measures performance, comparison of post-merger to pre-merger, including several cash flow measures and not just profitability measures, as the empirical literature review suggests. Finally, the authors examine FIs mergers orientations of diversification and focus create more value for shareholders (in the immediate announcement window and several months afterward) and/or generates better cash flows, profitability and less credit risk. Design/methodology/approach This study examines FIs merger effect on bidders’ shareholder’s value and on their observed performance. This examination deploys three techniques simultaneously: a) an event study analysis, to estimate and calculate abnormal returns (ARs) and cumulative abnormal returns (CARs) in the narrow windows of the merger announcement, b) buy and hold event study analysis, to estimate ARs in the wider window of the event, +50 to +230 days after the merger announcement and c) an observed performance analysis, of financial and capital efficiency measures before and after the merger announcement; return on equity, liquidity, cost to income ratio, capital to total assets ratio, net loans to total loans, credit risk, loans to deposits ratio, other expenses and total assets, economic value addition, weighted average cost of capital and return on invested capital. Deal criteria of value, mega-deals, strategic orientation (as in Ansoff (1980) growth strategies), acquiring bank size and payment method are set as individually as control variables. Findings Results show that FIs mergers destroy share value for the bidding firms pursuing a market penetration strategy. Market development and product development strategies enable shareholders’ value creation in short and long horizons. Diversification strategies do not influence bidding shareholders’ value. Local bank to bank mergers create shareholders’ value and enhance liquidity and economic value in the short run. Bank to bank cross border mergers create value for bidders’ in the long term but are associated with high costs and higher risks. Originality/value A significant advancement over the current literature is in assessing mergers, not only for bank bidders but also for the three pillars FIs of the financial sector; banks, real-estate companies and investment companies mergers. It is an improvement over current finance literature because it deploys two different strategies in the analysis. At a univariate level, shareholder value creation and market reaction to merger announcements are examined over short (−5 or +5 days) and long (+230 days) windows of the event. Followed by regressing, the resultant CARs and BHARs over financial performance variables at the multivariate level.

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