Resource-based Theory Perspective Research Articles

The Mediating Effect of Information Technology Usage on the Relationship of Internal Audit Processes and Internal Auditor Competence towards Internal Audit Effectiveness: Evidence from the Chinese Financial Sector

The effectiveness of internal auditing is determined by various factors, such as the independence of the internal audit function, auditors’ competence, effective audit planning, efficient audit processes, and support from senior management. The digitalization and informatization of modern enterprises have transformed the way companies are managed and have similarly impacted internal audit practices. Informatization not only alters traditional internal audit processes but also changes auditors’ ways of working and thinking. From the perspective of resource-based theory, the effective allocation and full utilization of human, technological and organizational resources can enhance the effectiveness of internal audit. Therefore, the purpose of this study is to examine the impact of internal audit processes (IAP) and internal auditor competence (IAC) on internal audit effectiveness (IAE), as well as the mediating effect of information technology usage (ITU) on the relationship between IAP and IAC and IAE. To test the proposed hypotheses, a questionnaire survey was conducted within Chinese financial enterprises, yielding a total of 133 valid responses. Statistical data analysis was performed using the partial least squares structural equation modelling (SEM-PLS) method. The results indicate that both IAP and IAC have a significant impact on IAE and ITU. Furthermore, ITU serves as a mediating factor, enhancing the positive contributions of IAP and IAC to IAE.

Resilience in tourism-based SMEs driven by initiatives and strategies through share value relational capital viewed from a resource-based theory perspective

This study aims to build a conceptual model based on the role of share value relational capital, frugal innovation and ambidexterity as an effort to link the increase in the resilience of SMEs (small medium enterprises). By using a quantitative research design, a structural study methodology was adopted in this study. Overall, data from 132 tourism SMEs was collected using a questionnaire and 568 data from respondents that can be used for further analysis. The analysis uses logistic regression with dichotomous response and predictor variables on structured tables of count data, representing firm performance as a result of capital resources, physical resources and possibly innovation. To test share value relational capital, frugal innovation and ambidextirity which is outlined in the research model and the hypotheses, the authors used the structural modelling software Analysis of Moment Structure, Structural of Equation Model (AMOS SEM) to analyse 568 usable questionnaires. The results show the acceptance of all hypotheses proposed in this study, as well as the role of share value relational capital, frugal innovation and ambidextirity variables can be a bridge to leverage the resilience of SMEs. The findings in this research area show that there are three pathway strategies for increasing resilience SMEs. Share value relational capital, frugal innovation and ambidexterity are the basis of separate contributions to increase the resilience of SMEs There are several practical implications for SMEs managers who want to increase their resilience. The originality in this research is the role of share value relational capital, frugal innovation and ambidexterity in being able to bridge the influence between digital business transformation and resilience SMEs.

Research on the Influence of Business English Proficiency on Small and Medium-Sized Enterprise Competitiveness Under the Perspective of Resource-Based Theory

In the globalized world arena, enterprises have to meet higher standard for showcasing their strength, as well as communicating with other enterprises from different cultural background. The business English ability, as one of the means of intercultural business communication, puts forward higher requirements and has become has become one of the important indexes to measure the international competitiveness of enterprises. Therefore, high proficiency in business is needed. We examines the impact of business English proficiency on the competitiveness of small and medium-sized enterprises (SMEs) from the perspective of resource-based theory. By using a quantitative research methodology, we could clearly recognized the impact of business English proficiency on enterprise competitiveness. The results of the study show that business English proficiency is a key resource for SMEs to enhance their market competitiveness, and there is a significant positive correlation with the market orientation, innovation ability and strategic flexibility of enterprises. As an intangible resource, business English proficiency significantly enhances the market performance, financial performance and operational efficiency of enterprises by increasing their market sensitivity, promoting knowledge innovation and enhancing the flexibility of strategic adjustment. In addition, the study finds that the role of business English proficiency varies across industries and sizes of firms, with smaller firms and highly internationalized industries benefiting more significantly. This study provides important theoretical and practical guidance for the development of SMEs in the context of globalization.

Political Skill of B to B Sales Team as a Dynamic Capability: A Strategic Resource Perspective

ABSTRACT Purpose To identify the key internal and external collective conditions and determinants for sales managers in the B to B context, which would allow the articulation of Team Political Skill as a firm’s dynamic capability at organizational and strategical level. Methodology/approach This study employs qualitative methods based on grounded theory, with an exploratory discovery, which jointly used in-depth interviews and online focus groups targeting sales management positions (Sales managers, sales supervisors) and CEOs of 24 B to B different firms in Chile and Peru. Findings The study reports that the political skill of B to B sales teams is articulated as a dynamic capacity when it is capable of generating organizational co-creation routines and an identification culture based on innovation, which translates into intrafirm collaborative organizational learning, strengthening its strategic intelligence, customer orientation and providing a distinctive and differentiating seal in the market at organizational level. Research implications This research suggests from the perspective of resource-based theory that B to B salespeople team political skills not only is a tactical resource to achieve sales results but also becomes an active differentiator of high strategic value for B to B firms in their organizational performance. Therefore, the sales team acts as a key predictor of higher social effectiveness and work performance. Additionally, this study highlights the pivotal role of the sales supervision role and competitive environment in the evolution of individual salespersons’ political skills toward group consolidation. Practical implications The current work offers initial strategies regarding for B to B sales managers can establish political skill development plans in their salespeople and to incorporate innovative supervision and supporting mechanisms that bolster the B to B sales team as a strategic resource in an ever-increasing competitive and complex environment, as seen in the recent post pandemic environment. Originality/value/contribution of the paper To identify unexplored dimensions and collaborative processes in B to B salespersons’ individual and collective team political skills and how these potentially consolidate themselves as a distinctive firm’s dynamic capability in their sales performance.

Going resilient with digital transformation, human capabilities and innovation readiness: empirical evidence from the energy sector

PurposeThe present study investigated organizational resilience (OR) in the United Arab Emirates (UAE’s) energy sector to identify impactful technological and human variables and assess the hermeneutic effect of digital transformation on value co-creation and OR. The study also investigates the mediating role of value co-creation on a few covariates of OR.Design/methodology/approachThe questionnaire was sent out to 311 professionals in the energy sector, all affiliated with governmental organizations, using quota sampling. A total of 206 collated responses corresponding to the tested variables regarding the influences of digital transformation, employee resilience, innovation readiness, cyber resilience and value co-creation on OR were analyzed using structural equation modeling. Accordingly, a model of eight constructs and their 27 indicators was tested.FindingsInstituting flexibility and adaptability to technological advancements, as well as cyber resilience, was found to enhance digital transformation. The sense of self-efficacy of the professionals who participated in the study led them to develop innovation readiness and thus embrace creativity and encourage co-creation while maintaining collaborative efforts with customers and stakeholders. This mediated several technological and human variables, such as the importance of managers' understanding of customer needs, preferences and pain points, which involves actively seeking and valuing customer feedback to inform decision-making.Practical implicationsWhen iterative prototyping, continuous learning, and OR are integrated into an organization’s culture, they create a robust foundation for a customer-centric mindset. This mindset becomes ingrained in how employees approach their work and make purposeful decisions.Originality/valueThe present study drew empirical insights into OR in the UAE’s energy sector from a resource-based theory perspective. By identifying potential vulnerabilities and implementing appropriate mitigation measures, organizations can reduce the likelihood and impact of disruptions, which can ultimately help them maintain customer satisfaction and loyalty.

A Bayesian Network Model of Megaproject Social Responsibility Behavior and Project Performance: From the Perspective of Resource-Based Theory

Megaproject Social Responsibility (MSR) is widely acknowledged as contributing to project performance. However, the effect of Megaproject Social Responsibility Behavior (MSRB) implemented by organizations participating in construction on project performance remains a subject of considerable debate, and the intrinsic mechanism of MSRB’s effect on the performance of megaprojects has not been elucidated. Therefore, this study employs resource-based theory to investigate the mechanism underlying MSRB’s effect on project performance, taking into account both internal and external social capital as well as resource integration capacity as pivotal influences. Drawing on sample data from 206 experienced project managers across the various parties involved, this study develops a Bayesian network model to elucidate the MSRB effect mechanism. Through inference and sensitivity analysis, this study discovers variations in the enhancement effects across the four dimensions of MSRB on project performance. Notably, a combination strategy yields superior enhancement effects. Furthermore, when project performance is suboptimal, resource integration capacity emerges as a significant mediator between MSRB and project performance. Conversely, at high levels of project performance, MSRB directly contributes to enhancing project outcomes. The findings of this study offer valuable insights for the governance of MSR and the enhancement of project performance in megaprojects.

Entrepreneurial marketing practices and rural wine producers’ performance: The moderating role of competitive intensity in an immediate post crisis period

This study unpacks the relationship between engaging in entrepreneurial marketing practices and firm performance under the moderating role of competitive intensity, in an immediate post-crisis (COVID-19) period. Following 20 field interviews, the model testing stage featured survey responses from owner-managers of 306 small, rural wine producers across multiple regions in the United States. Underpinned by a relational, stakeholder perspective of resource-based theory, alongside an outside-in lens, unique insights revealed that in aggregate terms, entrepreneurial marketing activities were positively and significantly associated with firm performance, while competitive intensity yielded a non-significant moderating effect. Importantly, a post-hoc test revealed that only certain dimensions of the multi-faceted entrepreneurial marketing construct were significantly associated with firm performance, whereby, competitive intensity played different moderating roles (exhibiting varying interaction effects). Implications arise for practitioners building resilience after an environmental shock, whereby, they are likely to need to pivot strategies while facing new degrees of competitive intensity.

Exploring the impact of crowdfunding and collaborations on firm survival through crisis management in the context of Pakistan

ABSTRACT The survival of small and medium-sized businesses (SMEs) depends on their adaptability and ability to successfully manage challenging circumstances in today's fast-paced business environment. Taking a Resource-Based Theory perspective, this study intends to analyse the relationship between Cross-Industry Strategic Collaborations and Crowdfunding as Firm Survival Drivers. This study also investigates how these elements interact through the mediating mechanism of Strategic Agility, as well as the moderating influence of Government Support in recent Pakistani crises. Primary data were acquired from 277 respondents working in SMEs in Pakistan's major cities, and hypotheses were tested with Smart PLS. The findings emphasise the significant roles that cross-industry collaborations and crowdsourcing play in determining SME survival during difficult times and emphasise their tangible contributions. The study also highlights the importance of strategic agility as a key mediator between strategic collaborations, crowdsourcing and firm survival. Furthermore, the inclusion of government support as a moderator enhances the link between strategic agility and firm survival, highlighting the significant function of institutional support. These results highlight the value of institutional support and strategic agility in enabling fruitful collaborations and crowdfunding activities to ensure SME survival and offer valuable insights on the resilience of SMEs.

Killing the Golden Goose: A Resource-Based Theory Perspective on Hedge Fund Activism

Killing the Golden Goose: A Resource-Based Theory Perspective on Hedge Fund Activism

Regional-level coopetition strategies and company performance: evidence from the Canadian wine industry

ABSTRACT Regional-level coopetition (collaboration among competitors in rural communities) has been linked to company performance. That said, there could be conditions (moderators) that help or hinder these networks from fulfilling such outcomes. This investigation examines the nature of the relationship between regional-level coopetition and company performance under key moderating effects. A resource-based theoretical lens is utilized to underpin the study. Following field interviews to shape the operationalizations and survey instructions, a quantitative study was undertaken in the Canadian wine industry to test the elements of the conceptual framework. The findings revealed that while regional-level coopetition drives company performance, regional-level rivalry negatively impacts this association. Surprisingly, industry experience intensified the potential dark-sides of these activities. As such, improved evidence has emerged on how coopetition strategies can be implemented in rural communities through the underlying mechanisms that can assist decision-makers of small enterprises to enhance their performance. Additionally, stronger insights are offered regarding a relational, stakeholder perspective of resource-based theory, in terms of how decision-makers may need to work with complementary and trustworthy rivals that can assist them to increase their company performance in competitively intensive environmental-level conditions.

Climate resources for camping: A resource-based theory perspective

Camping is a salient economic contributor to nature-based tourism that is also beholden to the natural environment. Climate resources are the combination of naturally occurring meteorological variables of empirically observable importance to firm performance. Tourism climatologist are at the forefront of climate resource research, where investigations have been primarily empirically derived rather than guided by theory. Accordingly, we introduce climate resources to the management discipline's resource-based theory, operationalizing climate resources as public goods in addition to other public goods like open access innovation. We investigate the value, rareness, and inimitability of climate resources at 36 managed United States National Park Service campgrounds from 1984 to 2019. Results spatially and temporally demonstrate (1) the value of climate resources to firm performance, (2) that climate resource value varies geographically, and (3) that climate resources are becoming rarer at lower latitude and altitude geographies. Implications, limitations, and future research directions are provided.

Resource-based theory perspective in the textile industry: The impact of the digital supply chain on operational performance

In a developing nation such as Pakistan, the textile sector is crucial for employment creation and poverty reduction. As a result of digitization, standard industrial operating processes have altered. The study, which is built on resource-based theory, seeks to determine how the digital supply chain (comprised of blockchain, the internet of things, and big data analytics) influences operational performance. In addition, the relationship between the innovative climate and the operational success of the digital supply chain has been analyzed. Data was collected from 270 respondents, i.e., 65 top level managers and 205 middle level managers. The results indicate that the digitization of the supply chain, which includes the application of big data analytics, the internet of things, and blockchain, greatly enhances operational performance. The innovation climate has not been proven to affect operational performance or digitalization. At the end theoretical and practical implication are highlighted.

Do Corporate Social Responsibility Categories Distinctly Influence Innovation? A Resource-Based Theory Perspective

Despite the existing vast literature on corporate social responsibility (CSR), there is a lack of research on the influences of CSR categories (i.e., employees; suppliers, customers, and consumers; environment; and social welfare). The objective of this paper is to investigate the influences of distinct CSR categories on firm innovation from a resource-based theory perspective. Based on a sample of Chinese A-share listed firms from 2010 to 2017, we find that employee-, supplier, customer, and consumer-, and environment-related CSR promotes innovation, while society welfare-related CSR reduces firm innovation. We also examine the distinct mechanisms of distinct CSR categories to influence innovation. Our findings mainly contribute to the literature on the association between CSR and innovation by considering the different influences of distinct CSR categories.

Coopetition and international entrepreneurship: the influence of a competitor orientation

PurposeGuided by a relational, stakeholder perspective of resource-based theory, the purpose of the current investigation is to help unpack the complexity of the performance-enhancing nature of coopetition for international entrepreneurs, namely the interplay between collaboration and competition. The context features under-resourced wine producers owned and managed by entrepreneurs that have implemented an internationalised business model. The focus of the study involves the influence of a “competitor orientation”, namely when decision-makers understand the short-term strengths, weaknesses, long-term capabilities and strategies of key current and potential rivals.Design/methodology/approachData collection primarily featured semi-structured interviews with owner-managers of wine-producing firms in New Zealand that reflected heterogeneity amongst international entrepreneurs' strategies targeting different product markets within their respective business models. Secondary data were also collected where possible. Specifically, interviewees' firms exhibited different portfolios involving wine sales (with varying export intensities) together with augmented sales of tourism-related products/services focussed on the domestic market.FindingsCoopetition activities amongst international entrepreneurs varied; i.e. influenced by respective owner-managers' competitor orientations. Illustrations of different decision-makers' business models within a 2 × 2 matrix feature those with a low- or high-export intensity, together with a narrow or augmented product portfolio. Internationalising entrepreneurs' perceptions varied regarding the extent to which their respective business model was oriented towards local cluster-based domestic tourism with limited export sales, as opposed to those with national and more importantly international wine sales. Possessing and acting upon relevant knowledge manifested in which competitors international entrepreneurs collaborated with and the extent to which this took place across product-market strategies. In turn, this enabled particular decision-makers to exhibit flexibility; hence, entrepreneurs enter and exit certain markets together with changing export intensities, as varying opportunities were identified and exploited.Originality/valueAlthough the performance-enhancing nature of coopetition is largely established in prior literature, the complexity of that relationship remains relatively under-researched, not least, amongst international entrepreneurs. More specifically, the extent to which decision-makers that are engaged in coopetition exhibit a competitor orientation remains under-researched. Unique insights feature a 2 × 2 matrix in order to provide originality regarding international entrepreneurs' respective product-market strategies within their business models that are underpinned by varying coopetition relationships and competitor orientations.

Rural entrepreneurship capital and firm performance: A youth perspective

This study aims to review the concept of entrepreneurship capital in the context of rural entrepreneurship. Rural entrepreneurship is becoming increasingly popular because it is considered as the proper instrument in stemming urbanization. This research examines the relationship between entrepreneurship and firm performance in the perspective of resource-based theory. The researcher used a structural equation model approach as a tool to measure the relationship. The unit of analysis of this study is a rural youth entrepreneur domiciled in East Java Province, Malang Regency, Bojonegoro, and Tuban. This study used a quantitative approach involving 733 youth entrepreneurs with a purposive sampling technique. The results of the study found that not all elements of entrepreneurship capital were able to influence firm performance. The three elements are cultural capital, social capital, and human capital. Other findings show financial capital is no longer as a major consideration to support entrepreneurship as in previous studies.

A holistic approach to supplier evaluation and order allocation towards sustainable procurement

PurposeThe purpose of this paper is to propose a holistic approach for supplier evaluation and purchasing order allocation among the ranked suppliers who meet acceptable levels of economic, environmental and social measures.Design/methodology/approachA mixed research method of case study and analytical approach is adopted in this research. A fuzzy analytical hierarchical process (FAHP) is applied for ranking of suppliers. Supplier ranks are validated using judgements from multiple decision makers. Purchasing order allocation among the ranked suppliers is determined using cost minimization subject to multiple criteria of economic, environmental and social conditions. A cement manufacturing case example demonstrates and validates the proposed approach.FindingsThe research shows that both economic and environmental considerations are significant when suppliers are evaluated for sustainable procurement within the best practice of supply management process. Ranking of suppliers, based on experts’ opinions, indicates varying degrees of importance for each criterion. Adoption of sustainable procurement criteria for evaluating supplier in a cement manufacturing organization is explained by three organizational theories including resource-based, institutional and dynamic capabilities theories. Preferred suppliers from FAHP method are confirmed by judgements from multiple decision-makers. The analysis reveals that purchasing order allocation is different when suppliers are evaluated based on their relative importance and overall ranking.Research limitations/implicationsCurrently, individual performance measures and decision-makers are selected from a limited set. The purchasing allocation among ranked suppliers, subjected to cost minimization, incorporates environmental objective of acceptable carbon dioxide emission and social perspective of health and safety of workers, and provides a new approach for dual supplier evaluation and purchasing allocation problem in cement industry. Adopting the proposed supplier evaluation and order allocation approach in practice needs to be guided by the operational principles and an overall methodology which is appropriate for the specific industry with sustainability objectives.Practical implicationsThis research enables decision-makers to incorporate sustainability analysis in the supplier evaluation as the basis for best practice with an industry-friendly holistic approach. Using organizational theories, the research re-enforces the importance of not only the energy consumption and environmental management systems of environmental dimension as driving forces/factors from Institutional theory perspective, but also pollution controls and prevention as purchasing capabilities from resource-based theory perspective. The proposed approach is expected to motivate decision-makers to consider sustainable perspectives in supplier evaluation and order allocation processes in a global supply chain and can become a benchmarking tool.Social implicationsSuppliers’ information on health and safety of their truck drivers are used in order allocation, thus emphasizing the importance of social dimension and encouraging better conditions and benchmarking for delivery drivers.Originality/valueThis paper extends the contribution to the literature by providing guidelines for managers to set strategies, benchmarks and policies within broader sustainable supply chain practices and demonstrates the applicability of the approach using a cement-manufacturing scenario in an emerging economy.

Performance implications of strategic planning and marketing capability in micro and small businesses in an emerging African economy: a contingent resource-based view

The study draws on the resource-based theory (RBT) and the contingency theory to propose why in the context of micro and small businesses (MSBs) in a developing economy, variances in strategic planning (SP) explain significant differences in firm performance and how this effect varies under varying conditions of marketing capability. Survey-based questionnaire data from one hundred and ninety-six Ghanaian MSBs were used to test the study’s hypotheses. Results from moderated regression analysis conducted revealed that SP has significant positive effects on MSBs’ responsive and financial performance and that the financial performance benefit of SP amplifies when marketing capability is high. The study contributes to the SP literature by strengthening and also clarifying the boundaries of the underdeveloped RBT perspective of SP in the context of small businesses. A key implication of the study’s results is that incorporating organizational resource-specific contingency variables could help disentangle the nuances characterizing the SP–performance link.

Intellectual Capital and Financial Performance: A Meta-Analysis and Research Agenda

In the post-industrial economy, intellectual capital (IC) in the form of human, structural or relational capital is becoming a crucial factor for a firm’s long-term performance, as it constitutes a competitive advantage from the resource-based theory perspective. Previous research led to a fragmented view of IC, as the relationship between IC and corporate financial performance has been mostly studied mobilizing human, structural or relational capital components in isolation. Furthermore, most studies conclude that even though the relationship is positive, it remains at best unclear. Another unsolved issue lies in value capture—namely, who, among various stakeholders, benefits most from the value created by IC. Using a statistical meta-analysis of 75 empirical studies from 1992 to 2017, this research shows that human capital (HC), structural capital (SC) and relational capital (RC) do not influence corporate financial performance to the same extent. This can be explained by the characteristics of IC components in term of ownership, tradability and timespan, and the beneficiary of the value created, being the company, the investor or the customer. This work, then, contributes to an extended view of resource-based theory, mostly by highlighting that some IC components are interrelated in their association with financial performance. Lastly, this research opens new avenues for research in four directions: (1) identification and classification of IC components; (2) understanding of the combination and orchestration of intangible assets; (3) improvement of indicators and measurement systems of IC; and (4) enhancement of the understanding of value creation through narrative means, namely extra-financial disclosure and corporate communication.

Innovation Strategy Based on Resource-Based Theory Perspective and its Impact on Small and Medium Business Performance

This study aims to analyze innovation strategies in the perspective of resource-based theory (RBT). This research was conducted in the Province of Bali with the population in this study were all small and medium enterprises (SMEs) that produced export commodities and recorded in the List of Regional Exporters of Bali (Bali Province) in 2016, which amounted to 462 business units and sampling methods with slovin so that a sample of 215 is obtained. Analysis of data using PLS SEM. Mastery of social capital by export-oriented SMEs in Bali that prioritizes the cognitive dimension and is followed by the relational and structural dimensions have not been able to determine the improvement of their business performance. However, the mastery of social capital which is used as the basis for the application of innovation strategies to achieve a superior position in competition, is able to improve or improve their business performance

Microfinance, gender and entrepreneurial behaviour of families in Ghana

PurposeThe purpose of this paper is to understand the relationship between microfinance participation and entrepreneurial behaviour of Ghanaian families as well as the moderating role of the family head’s gender. It is argued from a resource-based theory perspective that microfinance is a financial resource that removes credit constraints to entrepreneurial behaviour of families. However, gender of the family head creates heterogeneity in this relationship in line with the gender theory.Design/methodology/approachIn order to test these claims, cross-sectional data from 2,727 families on microfinance participation and household characteristics in Ghana are utilised.FindingsThe study finds that microfinance participation has a positive and significant relationship with a family’s decision to own an enterprise. Also, the study finds that female-headed families are better utilizers of microfinancial resources for entrepreneurial purposes compared to their male counterparts. This difference is a pure gender effect.Originality/valueThis finding is in contrast to the dominant stream of gender-based entrepreneurship research that suggests that women are subordinate to men and need to be helped to become “honorary men”. From a policy standpoint, solutions aimed at reversing discrimination against women in economic markets must consider women within their own right. The study makes a contribution to the literature by showing empirically the source of heterogeneity in entrepreneurial returns to microfinance participation by families.