Abstract

The purpose of this paper is to show that the type of firms’ resource endowments can have long-lasting effects. This paper empirically tests whether resource endowments have long-term divergent impacts on the type of firm performance, depending on ongoing capabilities, and on the mode of resource reconfiguration. This study tests these hypotheses in the context of the global video game industry, which is both a high-tech and a creative industry. This unique industry gives us an opportunity to observe firms with resources endowments between innovation and commercialization. By demonstrating support for our hypotheses, we shine a light on the importance of timing in the development of resources and capabilities and the types of performance they enable.

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