Resource-based View Literature Research Articles

Dynamic Capabilities and Firm Performance: Moderating Effect of Environmental Dynamism

This paper, therefore, conducts much detail with regard to the moderating role of environmental dynamism between dynamic capabilities and firm performance, with special reference to Small and Medium Enterprises (SMEs) of Pakistan. The conceptual framework leans on the proposition by Teece, Pisano, and Shuen (1997) that dynamic capabilities allow reconfiguration of resources for the changing market demand and hence the source of competitive advantage to the firm. It is theoretically possible that empirical studies on the moderating effect of environmental dynamism are possible, and still scarce within this domain—an even more rare context in the case of Pakistani SMEs. Thereby, this research intends to fill that gap by empirically examining how the influence of environmental dynamism plays out at the dynamic capabilities-performance nexus in Pakistani SMEs—a sector pivotal for the economic growth of the nation but also challenged by a unique blend of local business conditions. Understanding how firms can benefit from their dynamic capabilities in relation to their performance in volatile markets has become important within this fast-changing business environment. This paper, therefore, through an intensive review of the literature, traces the development of the dynamic capability theory in highlighting its relevance for firm performance and the critical roles environmental dynamism has played as one of the most emphasized contextual factors in firm performance. Quantitative research design will be used for data collection from a broad base of industries under the SME sector of Pakistan, and it will be collected through cross-sectional surveys to explore the proposed relationships. Findings have revealed an environmental dynamism-relevant moderating effect on the relationship between dynamic capabilities and performance. That is to say, in the most volatile environments, SME performance will be more dependent on dynamic capabilities, and that dependence will imply that the strategic value of the capabilities would become contingent on the level of environmental dynamism. This is congruent with the resource-based view (RBV) theory of strategy: the strategic value of resources and capabilities depends on the fit that such resources will have with the external environment. Implications for managers and policymakers, therefore, could be said to be very pragmatic, since SMEs operating within such dynamic markets would have a crying need to develop and deploy dynamic capabilities in a strategic way to effectively steer through the environment. First, these findings contribute to theoretical development in that they draw and support from the dynamic capability view (DCV) and RBV literature in verifying the contingent value of the dynamic capability with respect to environmental dynamism. It not only adds some fertile insights into the dynamic capabilities framework within an emerging market context like Pakistan but also substantiates some interesting facets for SMEs to gain an edge on their competitive advantage within the fast-changing global business environment.

Robotic process automation and artificial intelligence capabilities driving digital strategy: a resource-based view

PurposeResearch of currently limited literature sees Robotic Process Automation (RPA) as an important tool at the tactical level. However, the literature has not considered its potential contribution to creating competitive advantages. This paper aims to link RPA and Resource-based view (RBV) literature, proposing a conceptual framework boosting RPA research as part of an organizational AI strategy.Design/methodology/approach This study applied a Systematic Literature Review (SRL), combining bibliometrics and content analysis. This study also built a new framework based on the updated RBV model that was transformed based on the RPA literature review results.Findings By bridging the two bodies of literature on RBV and RPA, this study manages to show the strategic side of the technology. Therefore, this study brought to light the most updated fundamental concepts of complementarity and scale-free fungible resources from RBV theory and AI technologies, applied to the domains of RPA, information systems and information technology (IS/IT) through the development of a new theoretical lens. Also, this study was able to elaborate on a new conceptual framework for AI strategy formulation to help organizations on their journey to AI utilization.Originality/value The authors did not find any research that has shown the strategic side of RPA, nor any that has used a theoretical lens based on the RBV theory to show this side. To the best of the author’s knowledge, this study seems to be the first to make the case for RPA's strategic potential.

The Lights and Shadows of Family Involvement in Small and Medium-Sized Firms

This study analyzes the influence of human capital (HC) and altruism on small- and medium-size firms’ (SMEs) performance, contingent upon the effect of family involvement in management. HC, understood as the abilities, skills, and knowledge of firm personnel, has been proved to contribute to firm performance. Even more, firms’ outcomes benefit from aptitudes and also from attitudes, such as altruism. What is not so clear is if having a family character enhances the effect of HC and altruism on firm performance. Our results show that family involvement in management presents lights and shadows in its ability to extract all the potential of HC and altruism. By moving one-step forward in understanding these relationships, our findings contribute to the Family Firm, Human Resources Management, and Resource-Based View literatures.

Dual-branded hotels: Resource-based entry strategies in agglomerated markets

Despite the growing importance of dual-branded hotels, research on this trend is lacking. This study investigates the effect of resource-based entry strategies for dual-branded hotels vis-à-vis incumbent market competition on performance. Using a hierarchical linear model, we found that best performance is achieved by dual-branded hotels that pursue a diversification strategy by entering the market with one brand above and one brand below the mode class of the market. Dual-branded hotels can thus achieve competitive advantage by exploiting superior financial resources and tourism destinations are able to gain monetary advantage from resources employed by dual-branded hotels. This study extends current research on dual-branded hotels by investigating entry strategies and contributes to the resource-based view literature by investigating dual-brands’ resource exploitation and resource spillovers in agglomerated markets.

Innovation in family firms: The Brittelstand

PurposeThe Brittelstand are innovative, family-owned firms that offer national and international opportunities in the United Kingdom (UK). These fast-growing businesses are customer-oriented and proud of family ownership and embeddedness of the businesses within communities. While Brittelstand firms are as likely to deploy open innovation models as non-Brittelstand firms, these firms' engagement with customers in regional and national markets and the ability to benefit from this collaboration contrasts with these firms' willingness to engage in open innovation.Design/methodology/approachUsing longitudinal data and regression analysis on 13,876 firms with 24,286 observations over 2004–2020, the authors develop and test a theoretical framework of open innovation in the Brittelstand. The authors' model explains the willingness and ability of the Brittelstand firms to engage in open innovation and benefit from it.FindingsThe authors' results show that Brittelstand firms are less willing than non-Brittelstand firms to collaborate with customers and universities, contrasting prior research on family firms, and distinguishing the innovation model of the Brittelstand from a family business model. The Brittelstand firms who are able to engage in collaboration with customers in domestic markets will outperform the firms' non-Brittelstand counterparts in innovation outputs.Research limitations/implicationsIn line with other studies, this study is associated with several limitations that open opportunities for further research that replicate and/or extends this study. First, this study is unbalanced panel data and the fact that some firms appear in the model only once from 2004–2020. The longitudinal study will allow to enforce causality of the relationship and examines the dynamics of open innovation in the Brittelstand. Second, the indicator on the extent and mechanisms of collaboration with customers could be better explained and measured, for example, using a scale indicator instead of a binary variable for knowledge collaboration across different types of partners and four geographical dimensions.Practical implicationsFirst, Brittelstand firms who are less likely to employ open innovation models nationally and with customers. However, those Brittelstand firms who decide to collaborate with customers nationally are more likely to increase the innovation sales compared to those firms that do not engage in such collaborations? This is an interesting and unexpected finding, which means that low willingness of cross-country and cross-regional collaboration for Brittelstand firms is not optimal and engagement in collaboration with customers in domestic markets is beneficial for innovation. Managers and policymakers may use this finding to design and re-design open innovation strategies managers and policymakers with customers within and across regions in the UK. Second, managers may benefit from the integrated view on the two drivers of firm innovation – collaboration with customers and the local embeddedness of such collaboration.Social implicationsThe authors' results show that Brittelstand firms outperform the firms' non-Brittelstand counterparts by adopting an open model of innovation with customers in domestic markets. This means that the most dynamic and fast growing Brittelstand firms are those who collaborate with customers for new ideas and innovation.Originality/valueThis study describes the phenomenon of the Brittelstand and investigates the link between open knowledge sourcing across different geographical proximities and partners and innovation outputs. First, the authors contribute to open innovation and resource-based view (RBV) literature in family firms by theorizing and empirically testing the open innovation model for the Brittelstand firms. The authors also debate that the Brittelstand firms should overcome this inertia of willingness to collaborate across heterogeneous external partners and convert regional/national embeddedness of the firms with customers into strengths for greater product innovation. Second, the authors contribute to family business literature by explaining how and why the Brittelstand firms can achieve greater innovation outputs. In doing so, the authors draw on the concept of familiness and local embeddedness.

Multi-Factor-Market Contact: From Forbearance to Vengeance and Homogeneity

Multimarket contact is an important consideration in the analysis of firm competitive behavior. However, the role multi-factor-market contact—contact across multiple factor markets—plays in factor market rivalry has largely been overlooked. To explore the relationships among multi-factor-market contact, factor market competition, and firm competitive behavior, I combine arguments from the existing competitive dynamics and resource-based view literatures. To empirically capture these relationships net of the potentially confounding effects of product market competition, I test my hypotheses in the upstream oil and gas industry, where firms compete for scarce resources to produce commodities. Analyzing panel data that comprise over one million firm-month observations from 5,445 upstream oil and gas companies, I find evidence that multi-factor-market contact makes rivals act less intensely but also respond more aggressively. Further, factor market competition engenders action heterogeneity, but multi-factor-market contact weakens this effect toward homogeneity.

The Value of the Structural Power of the Chief Information Officer in Enhancing Forward-Looking Firm Performance*

ABSTRACT Drawing on the resource-based view (RBV) of the firm and the top management team (TMT) structural power framework, we investigate the relationship between Chief Information Officer (CIO) structural power and forward-looking firm performance. In addition, we examine the contingency roles of market turbulence, industry IT intensity, and operating efficiency in shaping the above relationship. Using a sample of 7,185 firm-year observations and a panel fixed-effects model, we find that CIO structural power is positively associated with forward-looking firm performance (proxied by Tobin’s q). Further, our results suggest that the benefits of CIO structural power are higher under greater market turbulence, higher industry IT intensity, and greater operating efficiency. Our empirical results imply that the board of directors should consider endowing CIOs with a higher structural power, especially when an organization faces greater volatility in industry sales, competes in a more IT-intensive industry, and operates at a more efficient level. This research contributes to the RBV literature and integrates RBV and structural power frameworks to offer newer insights into the contemporary role of an important TMT member, the CIO.

Business contributions to the sustainable development goals through community sustainability partnerships

PurposeThis study aims to understand how businesses can contribute to the achievement of the UN sustainable development goals (SDGs) by implementing Local Agenda 21 (or equivalent) plans in partnership with other organizations situated in their city. To this end, the present study examines drivers and outcomes from the perspective of business partners, as well as their relationships to the SDGs.Design/methodology/approachThrough a mixed-methods approach this research studies 71 businesses from four large cross-sector partnerships formed to achieve local sustainability goals. Data were collected through a survey to determine why firms partner and what outcomes they obtain from partnering. Qualitative content analyses are used to determine the relationships between business drivers and outcomes from partnering for local sustainability and the SDGs.FindingsFrom a resource-based view (RBV) perspective, findings show the value of local sustainability partnerships in relation to the SDGs. Many SDG targets are aligned with the top reasons why businesses join large community sustainability partnerships. Also, through the outcomes achieved by participating in the partnership businesses can further the SDGs.Research limitations/implicationsThis research contributes to the literature and to practice through the understanding of businesses partnering for local sustainability, and its relationships to global sustainability. Firstly, the connections of business partners to local and global sustainability are better understood. Of note is the contribution made to the literature on sustainability-related drivers and outcomes expanding and refining RBV literature. Secondly, a positive connection has been established between businesses and the SDGs, proposing a virtuous model of relationship that summarizes the findings from this research. And thirdly, large cross-sector social partnerships are better understood.Practical implicationsSmall- and medium-sized enterprises and large corporations with local offices can further both local and global sustainable development by engaging in local cross-sector sustainability partnerships.Social implicationsThese research findings are crucial for those leading sustainability initiatives, so they can engage businesses actively in light of the important role they play in society improving their contributions and the chances for sustainability partnerships to achieve their goals.Originality/valueThis research contributes to the scale conversation by exploring community sustainability partnerships as a means to understand how business engagement in sustainability at the local level can contribute to the achievement of the SDGs and, ultimately, to global sustainability.

The size of the fight in the dog: The role of teams’ active human capital resources within the human capital-task performance relationship

The management literature has been investigating teams’ human capital resources as a predictor of their task performance. However, our knowledge regarding the precise structure of the human capital-performance relationship, as well as the resource orchestrator role managers play in this relationship, remains limited. In this study, we relax the assumption that human capital resources are used effectively, and conceptually extend the human capital resources construct by distinguishing between gross and active human capital resources. Doing so both helps to better understand the human capital-performance link and clarify the exact role that managers play in this link. Using 98 teams’ data over 2 years (5492 sets of player-level data aggregated to 196 sets of team-level data) from European Big Five football (soccer) leagues, we test our predictions. Our study has implications for the human capital literature as well as for the resource-based view literature on organisational slack.

The moderating effect of founding assets on the founders’ human capital

PurposeThe purpose of this paper is to investigate into the conditions under which founders’ human capital (HC) benefits new venture growth (NVG). One such condition is investigated in this study – initial assets at founding. Specifically, founding assets are hypothesized to moderate the relationship between founders’ HC and NVG.Design/methodology/approachThe longitudinal panel database from the Kauffman Firm Survey for the period 2004–2011 was used to test the hypotheses. The final sample consisted of 4,923 firms, with 34,461 observations made over seven years.FindingsThe regression analysis found the effect of founders’ HC on NVG and the moderating role of founding assets in the HC–NVG relationship.Research limitations/implicationsNew ventures benefit even more from founders’ education level, industry and startup experiences when the startups have larger assets at founding. The effect of founders’ education and experiences on startup growth is contingent upon the initial assets at founding.Practical implicationsThe results of this study can help practitioners and policy makers to understand the drivers of NVG and the interactions among these drivers. Growth-oriented startups may require a large investment in founding assets such as production facilities. Startups with fewer founding assets may find it particularly difficult to negotiate with external stakeholders and may face unusually intense competitive responses from competitors. Policy makers should tailor the support to the founding conditions of new firms.Originality/valueThe prior literature has shown mostly the independent positive effects of various resources on firm growth. This study argues and empirically shows that startups grow faster when founders with high HC have more assets to utilize. The resource-based view literature was expanded by adding important new causal mechanisms, enriching our understanding of how founders’ HC interact with founding assets, jointly affecting NVG. Like a big fish in a small pond, even highly educated and experienced entrepreneurs have limited opportunities to utilize their talents in a startup with a lower initial resource position.

Integrating talent cultivation tools to enact a knowledge-oriented culture and achieve organizational talent cultivation strategies

ABSTRACTUnambiguously clear organizational strategies help organizational resources stay focused and facilitate the achievement of organizational goals effectively. The resource-based view (RBV) literature has noted that the implementation of strategies requires firms to possess appropriate resources and capabilities. In the era of knowledge economy, businesses which seek to improve business competitiveness have considered talent cultivation as important organizational strategies. Therefore, concepts including knowledge management (KM), competency management, e-learning, and education and training are introduced to assist strategic talent development. A knowledge-oriented culture is a culture which espouses sharing, learning, solving problems together, and making innovations. It prompts and affects the direction which employees are working towards. An integrated model concerning KM, competency management, e-learning system, and education and training is proposed. The analysis uses qualitative data gathered through an exploratory case study. This study demonstrated that KM processes and technologies could be employed to develop a KM culture, and an integrated talent cultivations tools could become a business’s tools to implement talent cultivation strategies. Furthermore, a KM culture is an organization’s intangible atmosphere. KM process and technologies, competency management, e-learning system, and education and training are an organization’s concrete and tangible management tools or systems. If the intangible KM culture and the tangible management tools or systems could be effectively implemented, an organization must be able to expand synergetic effects of management, achieve talent cultivation strategies, and complete the organization’s mission.

Supply chain integration capabilities, green design strategy and performance: a comparative study in the auto industry

PurposeThis paper aims to examine how supply chain integration capabilities inform green design strategy adoption and whether green design strategy can lead to higher levels of environmental and economic performance.Design/methodology/approachA survey-based approach was used to empirically test the study hypotheses. Based on 216 usable responses collected from automakers around the globe, the authors compared the results from two different data groups (i.e. Chinese firms vs Western firms) using the structural equation modeling approach.FindingsIn the Chinese context, both internal and external supply chain integration capabilities are significantly related to the successful adoption of a green design strategy. However, the relationships are not significant in Western context. Green design is found to positively impact environmental performance in both contexts; however, no significant relationship is revealed between green design and economic performance in either context. Finally, environmental performance was found to have a significant and positive impact on economic performance in both contexts.Research limitations/implicationsThe cross-sectional survey design that was focused only on the auto industry may affect the inferences of causality and generalizability of this study.Practical implicationsManagers should understand their specific organizational context first, and then strategically develop their external and internal supply chain integration capabilities to maximize their green design efforts for improved environmental performance. Companies can be certain that the more gains made in environmental management, the more economic returns can be expected.Originality/valueThis research contributes to the existing resource-based view literature by linking supply chain integration capabilities to green design strategy adoption in different organizational contexts. It also sheds a light on the association between green design and different performance dimensions and adds value to the current debate on the association between environmental performance and economic performance.

Developing the Concept of Firm Success among Muslim SMEs in Malaysia: a Study of Islamic Religion Practices as Moderator

This paper intended to develop the concept of firm success among Muslim SMEs in Malaysia. The researchers used entrepreneurial orientation multidimensional as independent variable (innovative, risk and proactive) to examine the relationship of these dimensions towards the success of Muslim SMEs by using Islamic religion practices as moderator. It is about developing the concept of Islamic success factors, as the failure of Muslim SMEs is alarming and the empirical references to Muslim SMEs success focusing on Islamic religion practices are limited. There were many attempts to connect entrepreneurial orientation to the Resource-Based View theory of firms. Resource-Based View, as underpinning theory, helps to describe the proposed research theoretical framework. Recent studies related to firm success have shown that entrepreneurial orientation is composed of innovation, risk and proactive having significant relationship with the firm success in the develop countries. However in Malaysia, there was only one study has documented the conceptual religiosity that influence relationship between entrepreneurial orientation and business success of entrepreneurs among the Malay community. The methodology for this study uses quantitative analysis, specifically, the Partial Least Squares Structural Equation Modelling (PLS-SEM) in processing the data. The population of the study is 2,286 PUNB (Perbadanan Usahawan Nasional Berhad) firms in Malaysia. Finally, this concept finding is able to facilitate future research proposals and to fill the knowledge gap in Resource-Based View concerning the relationship of Resource-Based View towards firm success. This study also contributed to the Resource-Based View literature on the perspective of Islamic religion practices as moderator.

When Losing a Valuable Resource Enhances Performance: Resource Turnover on Rugged Landscapes

In this study, we combine insights from the resource-based view (RBV) and organizational adaptation literature to examine under what conditions resource turnover is costly or beneficial to organizations. We employ a standard NK model in which firms develop, adapt, and exchange resources. We demonstrate that for different levels resource complexity and resource interdependence, firms may benefit or suffer from resource turnover. We show that there are conditions under which industry leaders may benefit from losing resources to their followers and conditions under which both industry leaders and followers benefit from turnover, creating win-win situations with strong incentives to encourage resource mobility across firms. Our results have important implications for both the RBV and the organizational adaptation literature. As for the RBV, we demonstrate that in settings where local search is important losing a valuable resource does not necessarily give away a firm’s competitive advantage. As for the organi...

Linking environmental strategy to environmental performance

PurposeThis paper aims to test a conceptual framework that describes the relationship between environmental strategy, environmental management accounting and environmental performance. In this paper, the authors argue that environmental strategy can directly influence environmental performance through environmental management accounting.Design/methodology/approachThis paper examines the survey responses of general managers, operations managers, financial managers and environmental managers in an ISO 14001 certified company listed on the Indonesia Stock Exchange. The hypotheses were tested using a consistent partial least squares approach and bias-corrected and accelerated bootstrap confidence intervals to test the significance between variables.FindingsIn general, the proposed framework obtains adequate goodness-of-fit statistics. Furthermore, the results support the argument that there is a positive and significant effect of environmental strategies on the environmental performance of companies and that the role of environmental management accounting can mediate their relationship.Research limitations/implicationsThe limitations of this study relate to the small sample size, as environmental results are still regarded as confidential by many companies. A causal relationship cannot be confirmed for the results. The instrument used is fully adopted from previous research, without unidimensional re-testing. This study contributes to the natural resource-based view literature by responding to recent calls to test the combined effect of resources on environmental performance.Practical implicationsThis result could serve as a specific reference for policymaking at firms to continuously improve their environmental performance. This study also has important implications for management practices by illustrating the potential of environmental strategies and environmental management accounting to improve environmental performance.Social implicationsThis result indicates that the improving green accounting in Indonesia would appear to require more mandated pressure from, particularly, governmental powers.Originality/valueThis study contributes to the corporate environmental accounting literature by providing empirical evidence linking environmental strategy with environmental performance through the implementation of environmental management accounting.

Enhancing socio-ecological value creation through sustainable innovation 2.0: Moving away from maximizing financial value capture

There is considerable consensus that a key to addressing the serious socio-ecological crises facing the world is for organizations to implement innovations that foster sustainable development. Drawing from the sustainability, innovation, and Resource Based View literature, this paper aims to examine the organizational capabilities associated with promoting a particular sustainable innovation—Conservation Agriculture—among small-scale farmers in low-income countries. Findings suggest that a paradigm shift is needed to what we call Sustainable Innovation 2.0. Sustainable Innovation 2.0 is associated with a double bottom line approach to sustainability that seeks to enhance positive socio-ecological externalities while maintaining financially viable organizations (i.e., financial well-being is subservient to socio-ecological well-being). We describe how Sustainable Innovation 2.0 is associated with: i) making rare sustainable innovations commonplace; ii) making inimitable emerging sustainable innovations transferable; and iii) developing institutional infrastructures and bundles of resources that counteract the non-substitutability of sustainable innovations. We discuss the implications of these ideas for the associated literature and for future research.

Rare is Beautiful? The Choice of Rare R&D Subjects and Technological Value Creation

Conceptual and empirical conflation between resource characteristics and resource-generated economic values has remained a weakness in the resource-based view literature. We address this issue by examining firms’ strategic choice of rare R&D subjects evaluated at the time of choice and by substantiating the micro-mechanisms through which rare resources develop into a critical source of competitive advantage. In particular, we conceptualize value creation and its sustainability at the resource level, clarifying the link between resource acquisition and rent generation. We build our theory exploiting the fundamental tension in the strategic factor market, where firms obtain resources to complete R&D projects and also strive to isolate their R&D output from potential competitors. Our core argument is that the degree of rareness of the R&D subject a firm chooses for resource development has a negative and nonlinear relationship with the value of the resulting resource and the sustainability of that value. For the sustainability of created value, we consider both dimensions of temporal duration and diffusion span. An analysis utilizing the topic modeling method of over 4,000 U.S. nanotechnology patents provides strong support for our theory. We claim important contributions to the resource- based view literature.

The contribution of tangible and intangible resources, and capabilities to a firm’s profitability and market performance

PurposeThe purpose of this paper is to investigate the relative contribution of tangible resource (TR) and intangible resource (IR), and capabilities on firm performance based on the measures of market share, sales turnover and profitability.Design/methodology/approachA cross-sectional survey research design was used in the study. The modified version of Galbreath and Galvin’s (2008) resource-performance questionnaire which included a total number of 45 questions was applied on 243 Turkish firms operating in different industries. The data collected were analysed by hierarchical regression analysis.FindingsThe findings revealed that IRs and capabilities contributed more greatly to firm performance compared to TRs. However, in contrast to the proposition of resource-based theory that views capabilities as the most important skills that underpin the development and deployment of both TR and IR, capabilities offered rather limited additional explanatory power to the prediction of firm performance only with respect to profitability against the combined effects of TR and IR.Originality/valueThe vast majority of the empirical resource-based view (RBV) research concentrates on developed countries and very little is known about results outside of this domain. This study employs Turkish business databases to assess the relative importance of TR and IR and capabilities on performance differences among firms in Turkey which was the 17th largest economy in the world trade in 2016. Second, in the RBV literature, limited research tests the contribution of capabilities to firm success after simultaneously accounting for the effects of other resources (namely, TR and IR) available to the firm. Finally, this research offers practical contributions to executives and managers who have to make adequate decisions for firm survival and growth in the competitive business arena.

Linking capabilities to green operations strategies: The moderating role of corporate environmental proactivity

The aim of this study is to investigate the specific role of supply chain capabilities (SCCs) in the implementation of green operations (GO) strategies. More importantly, it examines whether this relationship between SCCs and GO is contingent on corporate environmental proactivity (EP). Theoretical predictions of the conceptual model were tested using hierarchical regression analyses of data obtained from 225 senior logistics/supply chain managers in the global auto sector. To ensure the robustness of our findings, a post-hoc analysis using the partial least squares approach was conducted. Significant positive associations exist between specific SCCs and the adoption of GO strategies. EP positively moderates the external integration capability – green purchasing and the supplier appraisal capability – green manufacturing linkages. However, unexpectedly, EP negatively moderates the effect of internal integration capability on green purchasing. Equally surprising, consistent negative moderation effects are detected for supply chain flexibility on green design, green purchasing, and green manufacturing. This study contributes to the existing resource-based view literature by focusing on the capability – strategy linkage and its specific application to environmental management. The exploration of the moderating effects of EP confirms the important role of organizing context in the effective exploitation and deployment of resources and capabilities.

Winning the competition for supplier resources

PurposeThis paper examines the competition between buying firms for the supplier’s competitive resources. The purpose of this paper is to examine how indirect capabilities – the ability to access external resources – can help in obtaining preferential resource allocation from suppliers.Design/methodology/approachPartial least squares structural equation modeling is used to analyze data of 163 buying firms that assess preferential resource allocation from suppliers.FindingsTwo indirect capabilities (a buying firm’s selection capability and relational capability) positively influence the firm’s competitive advantage. These relations are significantly mediated by preferential resource allocation of suppliers. The impact of preferential resource allocation appeared stronger for manufacturing firms than for service firms.Research limitations/implicationsThis study’s data set represents the buyer’s assessment of suppliers’ resource allocation. Future research should aim for dyadic data for further validation. In addition, due to sample size limitations, this study’s data does not allow sector segmentation. A larger study that provides insights into segmentation is suggested for future research.Practical implicationsThe results inform managers about the relevance of the competition for supplier resources with rival firms that share suppliers, and the influence of this competition on firm competitiveness. Managers should not only focus on the supplier itself, but also on the capabilities of the supply chain management (SCM) function to recognize and integrate the supplier resources.Originality/valueThis study adds to the extended resource-based view literature by integrating the notion of supplier resource competition. In addition, the study shows the importance of indirect capabilities for obtaining preferential resource allocation from suppliers. Finally, the authors show the importance of separating between service and manufacturing when examining SCM practices.