A Historical Comparison of Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm?

1991 ◽  
Vol 17 (1) ◽  
pp. 121-154 ◽  
Author(s):  
Kathleen R. Conner
Keyword(s):  
Industrial Organization ◽  
Major Element ◽  
Theory Of The Firm ◽  
Perfect Competition ◽  
Historical Evolution ◽  
Transaction Cost Theory ◽  
Strategy Research ◽  
Resource Based View ◽  
Historical Comparison ◽  
Resource Based Theory

A resource-based approach to strategic management focuses on costly-to-copy attributes of the firm as sources of economic rents and, therefore, as the fundamental drivers of performance and competitive advantage. Interest presently exists in whether explicit acknowledgement of the resource-based view may form the kernel of a unifying paradigm for strategy research. This article addresses the degree to which a resource-based view represents a fundamentally different approach from theories used in industrial organization (10) economics. The central thesis is that, put informal terms, the resource-based approach is reaching for a theory of the firm. To determine its distinctiveness in comparison to IO, therefore, an appropriate comparison is with other theories of the firm developed within that tradition. Section I summarizes and analyzes five theories that have been significant in the historical evolution of IO. These are neoclassical theory's perfect competition model, Bain-type IO, the Schumpeterian and Chicago responses, and transaction cost theory. The first part of Section II analyzes the resource-based approach in terms of similarities to and differencesfrom these IO-related theories. The conclusion is that resource-based theory both incorporates and rejects at least one major element from each of them; thus resource-based theory reflects a strong IO heritage, but at the same time incorporates fundamental differences from any one of these theories. The second part of Section II analyzes resource-based theory as a new theory of the firm.

A resource-based theory of sustainable rents

2001 ◽  
Vol 27 (6) ◽  
pp. 651-660 ◽  
Author(s):  
Joseph T. Mahoney
Keyword(s):  
Industrial Organization ◽  
Transaction Costs ◽  
Theory Of The Firm ◽  
Alternative View ◽  
Opportunistic Behavior ◽  
Historical Comparison ◽  
Fundamental Distinction ◽  
Management Area ◽  
Similarities And Differences ◽  
Resource Based Theory

This paper summarizes and comments on Conner (1991) that contributes to the strategic management area by providing an historical comparison of resource-based theory and five schools of thought within industrial organization economics. Conner (1991) argues that the fundamental distinction between resource-based theory and transaction costs theory is that resource-based theory focuses on the deployment and combination of specific inputs while transaction costs theory focuses on the avoidance of opportunism. I offer three responses to this claim. First, Conner’s distinction was not central to the resource-based literature at the time the article was published. Second, I raise concerns about building a resource-based theory of the firm that assumes away the problems of opportunistic behavior. Third, I offer an alternative view of the fundamental similarities and differences between resource-based theory and transaction costs theory.

scholarly journals Search for marketing and strategy in key international journal: a bibliometric publications study on the XXI Century

2015 ◽  
Vol 14 (1) ◽  
pp. 07-27
Author(s):  
Luiz Antonio De Camargo Guerrazzi ◽  
Marcelo Moll Brandão ◽  
Henrique de Campos Junior ◽  
Carlos Eduardo Lourenço
Keyword(s):  
Industrial Organization ◽  
Factor Analysis ◽  
Network Analysis ◽  
21St Century ◽  
Theoretical Approach ◽  
Future Research ◽  
Transaction Cost Theory ◽  
Conceptual Approach ◽  
Resource Based View ◽  
Knowledge Based

This bibliometric study investigates Marketing and Strategy association in twenty relevant academic journals, divided equally between both fields. The methods used to identify the most influential studies; the most common conceptual approach and how researches from both areas evolved in the first fourteen years of the 21st century were citation and cocitation network analysis, exploratory factor analysis (EFA) and metric multidimensional scaling (MDS). Sample size was comprised of 5,270 articles, embodying over 130,000 citations, which had a relevant conceptual influence on the Resource Based View (RBV), Knowledge Based View (KBV), Transaction Cost Theory (TCT) and competitive strategy of the Industrial Organization (IO). Uppermost cited references were clustered in three factors, representing the theoretical approach used when both disciplines are compiled. The results showed: a) meaningful increase on the number of papers encompassing both areas in Marketing journals; b) RBV, TCT and IO as the most used Strategic themes to connect with Marketing and c) the overall most cited studies in the period of analysis. Guidelines for future research are provided for further investigation on the combination of Marketing and Strategy, identifying possible gaps to be covered.

The Resource-Based Theory of the Firm

2011 ◽  
pp. 129-148 ◽  
Author(s):  
Kalle Kangas
Keyword(s):  
Theory Of The Firm ◽  
Digital Economy ◽  
Information Resources ◽  
Solid Base ◽  
Modern Theory ◽  
Resource Based View ◽  
Resources Management ◽  
Information Resources Management ◽  
Theoretical Foundations ◽  
Resource Based Theory

This chapter explores the theoretical foundations of the digital economy. In doing that, it first discusses micro-economics – actually the eight main theories of the 20th century firm. A reasoning, through a literary review, is presented, which shows that no other theory of firm explored provides a suitable background for the digital economy, except the resource-based view of the firm. Starting from this finding, the paper further explores the strategic formulations based on the resource-based view of the firm, as well as its implications to organizational learning and competitive advantage created by information resources management. The conclusions suggest that the resource-based view of the firm, and its implications to strategic management and information resources management, form a solid base for further studies on the foundations of the digital economy. Therefore, the paper suggests that studies of the digital economy could be more fruitful, when studied under the premises of the resource-based theory, than any other modern theory of the firm.

scholarly journals The Evolution of Resource-Based Inquiry: A Review and Meta-Analytic Integration of the Strategic Resources–Actions–Performance Pathway

2021 ◽  
pp. 014920632199418
Author(s):  
Laura D’Oria ◽  
T. Russell Crook ◽  
David J. Ketchen ◽  
David G. Sirmon ◽  
Mike Wright
Keyword(s):  
Structural Equation ◽  
Equation Modeling ◽  
Competitive Advantages ◽  
Strategy Research ◽  
Resource Based View ◽  
Strategic Resources ◽  
Analytic Integration ◽  
Resource Orchestration ◽  
Performance Gains ◽  
Conceptual Evolution

Understanding why some firms outperform others is central to strategy research. The resource-based view (RBV) suggests that competitive advantages arise due to possessing strategic resources (i.e., assets that are valuable, rare, nonsubstitutable, and inimitable), and researchers have extended this logic to explain performance differences. However, RBV is relatively silent about the actions managers could use to create or capitalize on a resource-based advantage. Enriching RBV, the resource orchestration framework describes specific managerial actions that use such resources to realize performance gains. After reviewing the conceptual evolution of these two literature streams as well as related streams, we use 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. The results show strong complementarity and interdependence between their logics. Additional inquiry drawing on their complementarity is a clear path toward enhancing scholars’ understanding of how and why some firms outperform others. We build on our findings to lay a foundation for such inquiry, including a call for theorizing centered on the interdependence of resources and actions, as well as new theoretical terrain that can help resource-based inquiry continue to evolve.

How Starting Strategy and Network Structure Shape Problemistic Search: An Examination of Venture Capital Firms

2021 ◽  
pp. 104225872110335
Author(s):  
Jake Duke ◽  
Taha Havakhor ◽  
Rachel Mui ◽  
Owen Parker
Keyword(s):  
Venture Capital ◽  
Network Structure ◽  
Theory Of The Firm ◽  
Behavioral Theory ◽  
Organizational Strategy ◽  
Search Process ◽  
Strategy Research ◽  
Structural Holes ◽  
Starting Point ◽  
Venture Capital Firms

Building on the behavioral theory of the firm, we empirically examine how starting strategies and syndication networks can influence venture capital (VC) firms’ problemistic search. We propose that: (a) depending on a VC’s strategic starting point, that is, the VC’s extent of specialization, the directionality of problemistic search may change to either expanding or contracting search activities; and (b) depending on search direction, structural holes in syndication networks can either impede or facilitate the problemistic search process. In a sample of U.S. VC firms, we find results consistent with our predictions, which have important implications for entrepreneurship and organizational strategy research.

Theories of the Firm

2006 ◽  
pp. 1-9
Author(s):  
Petter Gottschalk
Keyword(s):  
Theory Of The Firm ◽  
Know How ◽  
Important Resource ◽  
It Planning ◽  
Resource Based Theory

In this book we need to develop a general understanding of business firms to enable strategic IS/IT planning. We will present the resource-based theory of the firm, the activity-based theory of the firm and the firm in terms of its value configuration. An understanding of firm theories and value configurations is important to later discussions of the topics in the book. The resource-based theory is applied to understand resources needed for e-business, sourcing, and governance. An important resource is knowledge in terms of know-what, know-how and know-why.

Control and Ownership Decision in Technology Sourcing Cross-Border M&A on the Resource-Based View and Institution-Based View

2013 ◽  
Vol 411-414 ◽  
pp. 2583-2588 ◽  
Author(s):  
Yong Cong Huang ◽  
Man Li Huang ◽  
Xiao Mei Chen
Keyword(s):  
Transaction Cost ◽  
Influencing Factors ◽  
Bargaining Power ◽  
Transaction Cost Theory ◽  
Critical Determinant ◽  
Chinese Enterprises ◽  
Resource Based View ◽  
Cross Border ◽  
Target Company ◽  
Technology Sourcing

Chinese companies have actively expanded overseas. However, more and more companies, such as TCL, have found that technology sourcing cross-border M&A cost too much to threaten their survival, rather than achieving their goals. From reviewing previous literatures, we found that control, not the ownership, is the critical determinant. Control is the result of the bargaining power between the acquirer and the target company. Drawing on resources-based view, transaction cost theory and institutions theory, this paper reviews the influencing factors of bargaining power in the control and ownership, and proposes a model of control and ownership for Chinese enterprises technology sourcing cross-border M&A.

Predictive Success and Non-Individualist Models in Social Science

2016 ◽  
Vol 47 (2) ◽  
pp. 145-161 ◽  
Author(s):  
Richard Lauer
Keyword(s):  
Social Sciences ◽  
Social Science ◽  
Theory Of The Firm ◽  
Social World ◽  
Social Scientists ◽  
Predictive Success ◽  
The Social ◽  
Recent Diagnosis ◽  
Resource Based Theory

The predictive inadequacy of the social sciences is well documented, and philosophers have sought to diagnose it. This paper examines Brian Epstein’s recent diagnosis. He argues that the social sciences treat the social world as entirely composed of individual people. Instead, social scientists should recognize that material, non-individualistic entities determine the social world, as well. First, I argue that Epstein’s argument both begs the question against his opponents and is not sufficiently charitable. Second, I present doubts that his proposal will improve predictive success for the social sciences, which I support with Edith Penrose’s resource-based theory of the firm.

Sign in / Sign up

Export Citation Format

Share Document