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 PERAN STRATEGIS INTELLECTUAL CAPITAL SEBAGAI VARIABEL ANTARA PENGARUH FINANCIAL CAPITAL TERHADAP KINERJA PERUSAHAAN

2018 ◽  
Vol 15 (2) ◽  
pp. 194-209
Author(s):  
Moh. Nasih
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Theory Of The Firm ◽  
Financial Capital ◽  
Superior Performance ◽  
Equation Modeling ◽  
Modern Theory ◽  
The Relationship

According to the classical theory of the firm, a firm can create value and earn maximum profits through financial capital. This view is valid in a stable environment. In recent decades, environmental conditions getting really erratic. Therefore, the role of financial capital in creating value and profitability is questionable. According to the modern theory of enterprise, intellectual capital is more dominant than the financial capital. This study aimed to examine the relationship/influence of financial capital and intellectual capital, directly or indirectly, to the company's financial performance among banking companies in Indonesia. Data obtained from banks, which in a single entity. Data that qualify the requirements is processed by using Structural Equation Modeling (SEM). The analysis showed that the financial capital (assets) indirectly influential, positive, and has significant impact on the firm's financial performance through intellectual capital and non-financial performance. Indirect effect on the financial performance of assets through intellectual capital is estimated at 0.166 and through non-financial performance to financial performance estimated at 0,600 (ROA) and at 0.617 (NI). Thus it is true that intellectual capital is a strategic asset that mediates the creation of superior performance of banking companies in Indonesia.

scholarly journals PERAN STRATEGIS INTELLECTUAL CAPITAL SEBAGAI VARIABEL ANTARA PENGARUH FINANCIAL CAPITAL TERHADAP KINERJA PERUSAHAAN

2017 ◽  
Vol 15 (2) ◽  
pp. 194
Author(s):  
Moh. Nasih Moh. Nasih
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Theory Of The Firm ◽  
Financial Capital ◽  
Superior Performance ◽  
Equation Modeling ◽  
Modern Theory ◽  
The Relationship

According to the classical theory of the firm, a firm can create value and earn maximum profits through financial capital. This view is valid in a stable environment. In recent decades, environmental conditions getting really erratic. Therefore, the role of financial capital in creating value and profitability is questionable. According to the modern theory of enterprise, intellectual capital is more dominant than the financial capital. This study aimed to examine the relationship/influence of financial capital and intellectual capital, directly or indirectly, to the company's financial performance among banking companies in Indonesia. Data obtained from banks, which in a single entity. Data that qualify the requirements is processed by using Structural Equation Modeling (SEM). The analysis showed that the financial capital (assets) indirectly influential, positive, and has significant impact on the firm's financial performance through intellectual capital and non-financial performance. Indirect effect on the financial performance of assets through intellectual capital is estimated at 0.166 and through non-financial performance to financial performance estimated at 0,600 (ROA) and at 0.617 (NI). Thus it is true that intellectual capital is a strategic asset that mediates the creation of superior performance of banking companies in Indonesia.

The Evolving Modern Theory of the Firm

2013 ◽  
pp. 448-472 ◽  
Author(s):  
Robert Maness ◽  
Steven N. Wiggins
Keyword(s):  
Theory Of The Firm ◽  
Future Research ◽  
Modern Theory ◽  
Incentive System ◽  
Cost Models ◽  
Theoretical Approaches ◽  
Research Challenges ◽  
Modern Economy ◽  
Size Of Firms ◽  
Empirical Tests

This chapter examines the role played by firms in allocating resources in a modern economy, explaining when firms are superior to markets and the limits to firm size. The analysis begins by carefully examining what distinguishes firm allocation from markets. We then review the various theoretical approaches to determining the size of firms and the types of transactions that occur within firms versus within markets. These models can be grouped into four broad categories: transaction cost models, property rights models, adaptation models, and incentive system models. We review the distinctive predictions of these models regarding the size and scope of firms, and numerous empirical tests. We discuss these tests, their results and limitation, and current research challenges. We conclude with a discussion of directions for future research.

On Economics: A Review of Why Nations Fail by D. Acemoglu and J. Robinson and Pillars of Prosperity by T. Besley and T. Persson

2013 ◽  
Vol 51 (1) ◽  
pp. 116-143 ◽  
Author(s):  
W. Bentley MacLeod
Keyword(s):  
Economic Performance ◽  
Theory Of The Firm ◽  
Modern Theory ◽  
Organizational Economics

The purpose of this essay is to review the books Why Nations Fail by Daron Acemoglu and James Robinson, and Pillars of Prosperity by Timothy Besley and Torsten Persson. The essay briefly discusses the main contributions of the books and the role of politics for economic performance. The review then discusses these contributions in the light of recent research on organizational economics, particularly the modern theory of the firm. (JEL D23, D72, O10, O47, O57)

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