Resource-based View Of Strategic Management Research Articles

Customer-Perceived Value in Long-Term Buyer–Supplier Relationships: The General B2B Insurance Sector

This article explores the role of customer-perceived value in long-term buyer–supplier relationships. This article aims to identify what creates value for organizational customers, particularly in the field of professional business-to-business (B2B) general insurance services. On the integrated grounds of customer relationship theory in marketing and the resource-based view in strategic management, qualitative research, coupled with interviews, was conducted to explore insights from various representatives of different Vietnamese general insurance firms. The findings suggest that reliability, risk coverage, reputation, technology, interpersonal skills, and technical skills are the six most important types of resources that insurance companies should possess to enhance customer-perceived value.

Can a Darwinian nomenclature help reconcile alternative perspectives of the dynamic capabilities view?

AbstractThe confusion concerning the theoretical roots of the dynamic capabilities view and the fact that it was often being positioned as an extension to the resource-based view in strategic management, prompted a paper by Galvin, Rice, and Liao (2014) that suggested that the dynamic capabilities view would benefit from adopting a more explicit Darwinian approach. In response to this paper, Arndt and Bach (2015) highlighted that the seminal papers in the field do indeed take an evolutionary perspective and that in operationalizing the variation–selection–retention cycle in an empirical setting it is necessary to move away from firm performance as a dependent variable and instead use survival, which more closely aligns with the concept of natural selection. In this paper, we respond to this recent critique to articulate the benefits of a Darwinian nomenclature and how this will assist in positioning the dynamic capabilities view as an independent, though complementary, theory to the resource-based view. However, we do clearly recognize that until the key terms of variation, selection and retention can be operationalized at the routine, firm and industry level, such an approach may not in itself bring the field towards a common understanding of how dynamic capabilities operate in different environments.

Resource-based view in strategic management of public organizations – a review of the literature

The resourced-based view has been widely used and appreciated in strategic management of private organizations. It is not, however, particularly popular in public management, although, as pointed out by the literature, it may be the solution to environmental turbulences that public organizations also have to face. This article focuses on presenting a review of to-date research relating to the use of resource-based view in the management of public organizations

Four Side Views of Blue LED Patent Pricing

Abstract: The price of patents is limited by four sides of business management: (1) avoiding costs of the patent in question; (2) founder's profit of inventors, such as researchers and engineers, to bear risks involved in business establishment; (3) factors supporting competitive advantage identified in the resource-based view of strategic management; and (4) negative impact of big money for the researcher's invention. This tetragon of limitations bounds the price range of patents. This is illustrated by exemplifying the LED lawsuit case in Japan. This study presents the four side views on the differences between what companies pursue and what employee inventors pursue. However, these various differences make it possible to coexist and co-prosper between companies and inventors, otherwise they continue the tug-of-war forever on the one-dimensional monetary scale.Keywords: licensing business, LED, founder's profit, resource-based view, work motivationIntroductionIn Japan, Shuji Nakamura, one of the inventors of the Light Emitting Diode (LED), filed a lawsuit against his former employer Nichia Corporation over his inventor compensation in August 2001; the so-called blue LED lawsuit. Consequently, several other lawsuits concerning inventor compensation were filed in Japan, paving the way for research into the evaluation of intellectual property rights, including patents (Goto 8s Nagaoka, 2003; Goto 8s Odagiri, 2003; Kikuchi, 2002; Okada, 2002; Takahashi, 2002).In the LED lawsuit, the Tokyo District Court ruled in the first trial on January 30, 2004 that Nichia's monopoly profit from the invention of the LED was 120.8 billion yen. Setting Nakamura's contribution at 50%, the court calculated his inventor compensation at a whopping 60.4 billion yen and ordered Nichia to pay Nakamura's claim of 20 billion yen in full. Many were surprised by this astronomical sum.However, at the appeal hearing at the Tokyo High Court on January 11, 2005, a settlement was reached; Nichia was to pay Nakamura a sum of approximately 840 million yen, including inventor compensation of around 600 million yen. The LED inventor compensation made headlines, having been settled at just 1% of the 60.4 billion yen estimated by the Tokyo District Court.Originally this court case only covered the method of growing a semiconductor crystalline film of nitrogenous compounds with Japanese No. 2628404 (or Patent 404, taking only the last three digits of the patent number). By contrast, this settlement amount of 600 million yen went beyond 404 and included inventor compensation for all employee inventions attributable to Nakamura alone or to Nakamura and his co-inventors. The settlement covered 191 patents (including 404) and four new designs for practical use registered in Japan, 112 patent applications pending approval by the Japan Office, and corresponding foreign patents and inventions subject to foreign patent application and undisclosed know-how left unfiled for confidentiality. As a result, it is said that the maximum inventor compensation for 404 alone was estimated at 10 million yen. This would mean that the assessment of its value was reduced to a mere 0.016% of the amount appearing in the Tokyo District Court ruling.Four Side Views of PricingMany people were amazed at the astronomical sum of 20 billion yen awarded by the district court. Many interested parties in both the industrial and academic world considered the sum to be far beyond all expectations.1 In fact, business practices had already developed and accepted market quotations for intellectual property rights in the licensing business (Nakano 8s Takahashi, 2012; Saotome, 1987; Saotome 8s Hashimoto, 2003; Wakumoto 8s Nakano, 2005).The monetary value of patents is quite distinct from the scientific value of an invention and depends on a company's strategic decision. …

What Makes a Resource Valuable? Identifying the Drivers of Firm-Idiosyncratic Resource Value

We fill a gap in the resource-based literature by identifying conditions and mechanisms that make a resource valuable to a firm ex ante—that is, before a decision on acquiring or building it is made. These conditions are (1) the firm's ex ante market position; (2) its ex ante resource base, which allows for complementarities; (3) its position in interorganizational networks, which gives it access to privileged information; and (4) the prior knowledge and experience of its managers, which allow superior judgment concerning the value-creating potential of the resource. These factors help explain why firms initially differ in how much value they attribute to a resource and, subsequently, why firms differ in their resource endowments. Our results also contribute to resource management theories by highlighting the role of managerial judgment in acquiring and accumulating resources and, thus, shaping firms' paths toward superior competitive positions. Furthermore, identifying firms' market positions and managerial judgment about demand-side value creation opportunities as resource value drivers highlights the importance of demand-side factors to strategic outcomes. We also discuss how our findings may open avenues for further studies and provide a basis for empirical tests of the resource-based view of strategic management.

An empirical analysis of customer loyalty in Pakistan's telecommunication industry

This research aspires to achieve two main objectives. The first objective of this study is to comprehend customer loyalty in context of a developing country such as Pakistan where there has been an incidence of above average cellular subscriptions within the last decade. The second aim of this article is to understand underlying attitudes and behaviors of loyal customers through their demographic details. It attempts to replicate an empirical model for measuring Customer Loyalty in the telecommunication industry of Pakistan and examines factors such as Telecommunication service quality (TSQ), Trust (T), Staff loyalty (SL) and switching cost (SC). This subject has received copious attention in the literature pertaining to marketing studies, yet has been scantly covered from the viewpoint of Resource-Based view in strategic management. The article opts for a field study where data is collected by means of a cross-sectional approach through a structured questionnaire from 146 users of cellular operators (54 per cent male), who work in private or public sector or are self-employed. Pearson correlation, simple linear regression and correlations are used to analyze the data. This research has identified that the factors that shape the loyalty of customers in the telecommunication industry of Pakistan are not just limited to trust, TSQ, SC and SL. They can also be observed through their intersection with social categories such as youth and gender. The omnipresence of mobile phones in a developing country such as Pakistan suggests that genders share their usage for technology and appreciate cellular service both on account of its utilitarian aspects, as well as hedonic features. Mobile service has become a communication channel that aids in marketing, maintains social networks and also facilitates an informal system of learning.

Human Resource Management of the Best-Fit and its Implications

This article with the title Human resource management of the and its implications discusses the contingency and configurational schools in strategic human resource management, summarized as the Best-Fit Approach. It concludes that the approach helps the practitioner to see the idiosyncrasy of the firm and prevents her from adapting management fashions or ostensible Best-Practices in an unreflected way, but is of limited value beyond this. From a technical point of view, the issue of statistical artifacts is raised. In order to discuss the best-fit approach the article starts by embedding human resource management in the resource-based view of strategic management. The view of human resource management used in this article is documented. The universalistic, contingency and configurational perspectives are briefly introduced, with a focus on the Best-Practice and the approaches. A comparison of international settings shows the limits of the best-practice approach. The dynamics resulting for human resource management from a best-fit thinking are stressed.

Modern Resource-Based Theory(ies)

We survey the resource-based view in strategic management, focusing on its roots in economics. We organize our discussion in terms of the Gavetti and Levinthal distinction between a “high church” and a “low church” resource-based view, and argue that these hitherto rather separate streams are increasingly overlapping.

Inovação, Recursos e Comprometimento: Em Direção a uma Teoria Estratégica da Firma

O artigo se insere no esforço, atualmente em curso, de articulação conceitual entre as teorias da concorrência e da inovação forjadas pela teoria econômica Evolucionária e a teoria da firma desenvolvida pela Visão Baseada em Recursos (VBR) na área de gestão estratégica. Ele o faz em três planos: (i) sublinhando a convergência e complementaridade entre as proposições centrais da teoria econômica Evolucionária e a da VBR; (ii) trazendo à luz uma segunda convergência: da relação entre decisões empresariais sob incerteza e seu impacto econômico, associadas à perspectiva pós-keynesiana; (iii) mostrando como os modelos de processos de formação e gestão de estratégias empresariais vêm oferecendo proposições úteis, coerentes e complementares com este mesmo quadro conceitual. A proposição fundamental do artigo é que a referida articulação aponta para uma teoria estratégica da firma centrada nas relações entre concorrência, inovação, competitividade, decisões sob incerteza, comprometimento e busca de liquidez.

The co-evolution of product, production and supply chain decisions, and the emergence of manufacturing strategy

In this paper, adopting the necessary evolutionary economics perspective, we investigate how manufacturing strategy emerges as a result of a coordinated search in the three correlated fitness landscapes of product, production and supply chain decisions. In a complex evolving systems view, product, production system and supply chain requirements, which are used to define manufacturing strategy performance objectives, are also thought to constitute, in a dialectic fashion, decision variables for achieving these objectives. Using a system dynamics simulation model of a resource-based view of operations-driven competition, we have investigated the effect of two contextual variables (underlying pattern of interaction among tasks/decisions, and limits of managerial ability), and three organisational structure ones (tasks/decision decomposition, incentives system, and degree of vertical hierarchy) on the efficiency and effectives of the overall manufacturing strategy process. The contribution of the paper is twofold: first, simulation results justify empirical views and provide new insights on the effect of organisation in the manufacturing strategy as an evolutionary process, and secondly, by combining complex systems science with the resource-based view of strategic management, it presents a novel methodological stance for investigating complex issues involved in this area.

Resources and transaction costs: how property rights economics furthers the resource-based view

Property rights economics furthers the resource-based view of strategic management in a number of ways. First, resources are conceptualized as being composed of multiple attributes for which property rights may be held. Second, a resource owner's ability to create, appropriate, and sustain value from resources depends on the property rights that he or she holds and on the transaction costs of exchanging, defining, and protecting them. While transaction costs are a major source of value dissipation, reducing such dissipation may create value. Implications for the RBV analysis of sustained competitive advantage are derived. Copyright © 2005 John Wiley & Sons, Ltd.

The effects of innovative capabilities and R&D clustering on firm performance: the evidence of Taiwan's semiconductor industry

This research investigates the impact of various aspects of innovative capability on firm performance. A resource-based view of strategic management is adopted to highlight the importance of resources and capabilities. The study here also addresses the recent interest in the effect of R&D clustering on innovation and thus on firm competitiveness. The present study explores the influence of innovative capabilities and clustering effects along the value chain of the Taiwanese integrated circuit (IC) industry. The empirical results indicate that innovative capabilities are mostly positively related to performance as measured by returns on assets (ROA). Specifically, higher R&D intensity and higher R&D manpower are found to be predictors of improved firm performance. Additionally, firms at various stages of the value delivering process are seen to have differentiated innovative capability characteristics. A noteworthy result is that low and moderate levels of R&D clustering demonstrate positively moderating power to the relationship between innovative capability and performance. However, the hypothesis that further R&D clustering would eventually reduce the impact of innovative capability on firm performance was not confirmed.

Diversification Strategy of Global Media Conglomerates: Examining Its Patterns and Determinants

This article reviews the diversification patterns of the leading global media conglomerates and proposes an analytical framework for examining the factors that influence these strategic choices. Using a case study approach, we analyzed the top 7 global media conglomerates' product and international (geographic) diversification strategies. Combining both the industrial economics and resource-based view of strategic management, we further devise a system of determinants that might affect the extent, direction, and mode of diversification for global media conglomerates.

Managing key capabilities: a challenge for nuclear plant building companies

The nuclear plant building industry faces a paradoxical situation. The use of nuclear reactors to produce energy for civil purposes is both a promising technology, with potentially huge outlets, and a technology facing declining demand. One of the key problems is then: how to maintain the capabilities necessary to benefit from the potential recovery? The resource-based view of strategic management has shown the importance of different types of resources and capabilities in gaining a sustainable competitive advantage. Successful incumbents in the market of nuclear station building have built those kinds of distinctive capabilities that give them a competitive advantage over potential new entrants. But we show that, without a permanent activity in plant building, preserving those capabilities necessitates specific strategic action. We firstly develop the argument that the nuclear plant building industry is in a paradoxical situation in terms of demand and technical performance trends. Secondly, we try to identify the key capabilities of the incumbents. We show that companies in that field use mainly three types of distinctive capabilities: pure technical and scientific knowledge in direct relation to the use of nuclear as an energy generator, competences in risk management and competences in large project management, including financing. Thirdly, we show that although some of those capabilities are used through other nuclear-related activities such as plant maintenance or fuel supply, some of them necessitate taking strategic actions in order to be preserved. We argue that this should be a priority of nuclear equipment company managers in the next few years.

Edith Penrose's contribution to the resource‐based view of strategic management

AbstractEdith Penrose's (1959) book, The Theory of the Growth of the Firm, is considered by many scholars in the strategy field to be the seminal work that provided the intellectual foundations for the modern, resource‐based theory of the firm. However, the present paper suggests that Penrose's direct or intended contribution to resource‐based thinking has been misinterpreted. Penrose never aimed to provide useful strategy prescriptions for managers to create a sustainable stream of rents; rather, she tried to rigorously describe the processes through which firms grow. In her theory, rents were generally assumed not to occur. If they arose this reflected an inefficient macro‐level outcome of an otherwise efficient micro‐level growth process. Nevertheless, her ideas have undoubtedly stimulated ‘good conversation’ within the strategy field in the spirit of Mahoney and Pandian (1992); their emerging use by some scholars as building blocks in models that show how sustainable competitive advantage and rents can be achieved is undeniable, although such use was never intended by Edith Penrose herself. Copyright © 2002 John Wiley & Sons, Ltd.

Human Resource Systems and Sustained Competitive Advantage: A Competency-Based Perspective

Drawing on the theoretical insights from the resource-based view of strategic management, this article explores the potential of human resource systems to facilitate or inhibit the development and utilization of organizational competencies. These competencies — managerial, input-based, transformational, and output-based—are presumed to yield sustained competitive advantage for a firm. The competency-based perspective, by focusing attention on the HR activities, functions, and processes that enhance or impede competency accumulation and exploitation, complements the behavioral perspective (Schuler & Jackson, 1987) and, thus, potentially enhances the understanding of strategic human resource management.