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Research SummaryThe resource-based view claims that bundles of resources are the key determinants of a firm's value. Yet, market value spillovers stemming from firms' resource bases have received scarce attention in the literature. This article provides evidence of such spillovers in the context of technological acquisitions. I hypothesize that acquisitions act as signals, revealing to investors that the acquired technologies are more valuable than initially expected. These signals should affect firms owning similar technological resources. Measuring technological similarity with the text similarity of firms' patent portfolios, I find that the announcement of an acquisition brings a positive revaluation of firms with technological resources like those of the target. These spillovers also reach firms with a product market focus different from those of the merging firms.Managerial SummaryTechnological resources are key strategic resources that significantly contribute to firms' valuations. These resources are often acquired through corporate acquisitions. This study explores whether acquisitions affect the valuation of technological resources of other companies not involved in the transaction. The results show that a firm that owns patents similar to the company being acquired experience positive stock market returns at the acquisition announcement, which suggests that the deal signals to investors that the acquired resources are more valuable than initially expected. This effect holds regardless of whether the firm belongs to the same industry as the target or the acquirer. These spillovers change the market value of technological resources and are likely to affect the gains from later acquisitions or divestures of similar resources.

Research shows that big data analytics capability (BDAC) is a major determinant of firm performance. However, scant research has theoretically articulated and empirically tested the mechanisms and conditions under which BDAC influences performance. This study advances existing knowledge on the BDAC–performance relationship by drawing on the knowledge-based view and contingency theory to argue that how and when BDAC influences market performance is dependent on the intervening role of disruptive business models and the contingency role of competitive intensity. We empirically test this argument on primary data from 360 firms in the United Kingdom. The results show that disruptive business models partially mediate the positive effect of BDAC on market performance, and this indirect positive effect is strengthened when competitive intensity increases. These findings provide new perspectives on the business model processes and competitive conditions under which firms maximize marketplace value from investments in BDACs.

Digital firms tend to be both narrow in their vertical scope and large in their scale. We explain this phenomenon through a theory about how attributes of firms' resource bundles impact their scale and specialization. We posit that highly scalable resource bundles entail significant opportunity costs of integration (versus outsourcing), which simultaneously drive "hyperspecialization" and "hyperscaling" in digital firms. Using descriptive theory and a formal model, we develop several propositions that align with observed features of digital businesses. We offer a parsimonious modeling framework for resource-based theorizing about highly scalable digital firms, shed light on the phenomenon of digital scaling, and provide insights into the far-reaching ways that technology-enabled resources are reshaping firms in the digital economy.

PurposeThe purpose of this paper is to explore whether innovation mediates the relationship between entrepreneurial orientation (EO) and supply chain resilience (SCR) in the context of small and medium enterprises (SMEs).Design/methodology/approachBased on the structural equation modeling the relationships were tested in the proposed model. A self-administered questionnaire was used to collect data from SMEs owners/managers in Yemen. Out of 384 questionnaires, 229 have been used in statistical analysis.FindingsThe results obtained reveal that both EO and innovation have positive and significant effects on SCR. In addition, innovation partially mediates the effects of EO dimensions (risk-taking and proactiveness) on SCR.Practical implicationsManagers and decision-makers of SMEs who want to enhance their firms' resilience to any supply chain disruptions are highly recommended to adopt EO, as well as to develop the innovative capability resulting from it.Originality/valueThe present study emphasizes previous results and provides additional evidence that SMEs' adoption of EO can reinforce their resilience within the supply chain through innovation in light of the disruptions facing supply chains in developing countries.

Building on the resource-based view (RBV) theory, this paper aims to shed light on how does the implementation of green strategies affect enterprises' performance. To distinguish the evolution of strategy implementation effect, we adopt a panel estimation strategy and gather data from 3869 listed companies in China from 2008 to 2019. Furthermore, we innovatively use the semi-supervised clustering algorithm to classify the companies according to whether they implement green strategies or not and then discuss long-term and short-term financial effects of implementing green strategies. Our study finds that the implementation of green strategy facilitates a company's long-term performance but hampers its short-term performance. According to the moderating analysis, a green strategy could negatively impact a company's financial performance by increasing debt ratios. The findings highlight the importance of implementing green strategies and the obstacles in the process of transforming enterprises to be green.

With the increasing use and availability of computing power and raised consumer power comes the need in competitive markets to produce and offer products and services that provide as precisely as possible the exact features of offerings that match customer requirements, with as little waste as possible. Further, customers have different thresholds of willingness to pay for sets of features. The purpose of this paper is to conceptualize and model the merging of supply chain strategies with the marketing decisions, which is key to the overall optimization of aspects of a firm’s strategy, including design of its products and their features, pricing, and positioning. The method used was to create the comprehensive modeling approach that represents these challenges not based on products, but based on individual features of those products, atomistically. The theoretical contribution made is the integration of supply chain optimization approaches, that are essentially based on the resource based view of the firm and focus on cost, with the marketing orientation approach to product design, pricing and marketing strategies. Further, this theoretical contribution recognises in its models that mass customization provides for individualization of features offered to each customer, at prices that reflect their assessed willingness to pay. There are many practical implications: many firms are moving towards full customization of feature sets, and increasingly pricing in a customized manner, and this trend will continue in practice as big data applications in markets go further and become more cost efficient. The integration of the marketing view and the resource-based operations view allows for a fully integrated view of competitive strategy and the design of products and services, so that firms can profit optimize their offerings.

We argue that the managerial ability of CEOs facing different career concerns can explain significant variation in firms’ investments in intellectual capital (IC), an important corporate strategic decision, and the driver of competitive advantage. Under the umbrella of Resource Based Theory, using a large sample of US firms, we find that CEOs’ managerial ability has a significant positive relation with investments in human, innovation and relational capital. This relationship is weaker when CEOs actually face lower career concerns. Furthermore, the relationship is less (more) pronounced in firms at the introduction (decline) stage of their lifecycle. Our results are robust to a range of sub-samples, alternative variable definitions and model specifications. The findings are important for firms embarking on building IC stocks, essential for firm’s survival in the knowledge-economy era.

Purpose: This study sought to establish the effect of strategic resources on performance of small and medium manufacturing enterprises. Specifically, the study sought to identify how financial resources, human resources, physical resources and intellectual capital affect performance of small and medium manufacturing enterprises in Kenya. Methodology: Positivism research philosophy was utilised. Cross-sectional descriptive survey as well as explanatory study design were used in the study. The target population for the study was 350 Kenyan SMEs in the manufacturing sector. A sample of 183 firms was selected using stratified random sampling. One respondent from each firm was selected being the managing director. Data was collected using a semi-structured questionnaire. Diagnostic tests for multicollinearity and normality were conducted before data analysis. The research questionnaire was tested for content validity and reliability after. Data was analysed using inferential and descriptive statistics. Data collected was analysed using SPSS V23. Finding: The study found that strategic resources have a significant influence on significant influence on performance of manufacturing SMEs in Kenya. Specifically, financial, human and physical resources all positively and significantly influenced the performance of Kenyan SMEs while intellectual resources as no effect on performance. The study therefore concluded that financial resources have a positive and significant influence on performance of manufacturing SMEs in Kenya, human resource was found to be significant in predicting performance. Physical resources have a significant influence on performance of manufacturing SMEs in Kenya while intellectual capital has no significant influence on performance of manufacturing SMEs in Kenya. Study Implication: The study recommended that Management of manufacturing SMEs should ensure that there are enough financial resources to meet their daily transactions and ensure that they are able to acquire the relevant strategic resources for efficient running of their firms; have adequate, committed and well-skilled personnel with the required expertise; should invest significantly in physical resources in order to maximise the performance of these firms; carry our cost benefit analysis before committing their resources to protect their intellectual capital in form of patents. Value of the Study: The study showcases the influence of strategic resources on performance of manufacturing SMEs in Kenya.

This study empirically examines the role of intrinsic speed capabilities, which refer to the ability to execute investment projects faster than competitors, in shaping corporations’ choice of alliances versus autonomous project development. Our basic premise is that firms lacking intrinsic speed capabilities (i.e., slow firms) are more likely to turn to alliances to supplement their capability deficiency. However, we expect that the ability of slow firms to partner with fast firms hinges on the former’s possession of complementary supporting assets. Our empirical analyses furnish evidence supporting these ideas using data from the global liquefied natural gas industry.

Scholars and managers routinely point to various uncertainties in explaining why manufacturing firms struggle with green product innovation and why green product innovation is different from conventional product innovation. This explanation is yet unsatisfactory as a thorough understanding of how a firm deals with uncertainty exists in conventional innovation literature. At the same time, there is a lack of agreement and understanding how a firm's capabilities shape its green product innovation practices, which could contribute to this gap. Based on a case study at five multinational manufacturers, this paper sets out to contribute to the capability perspective on green product innovation by understanding how manufacturing firms learn and innovate in order to make and sell greener products. A powerful and favored way for firms to learn and innovate under uncertainty is through strategic ambidexterity. With this learning strategy, firms rely on existing competences in one area (exploitation) while they simultaneously explore new competences in another area (exploration). However, our results show that strategic ambidexterity is oftentimes unachievable due to several factors, and as result, firms are forced to choose between a highly uncertain and risky alternative strategy and a more conservative but also less green strategy based on exploitation only, which is often the preferred option. In addition, our findings shed a new light on the role of uncertainty in green product innovation as we conclude that uncertainties firms face in green product innovation are indeed abundant, but are fundamentally not new nor caused by external sources only.

PurposeThis paper presents a theorization and an empirical analysis of the influences of international open innovation (IOI) on the international market success of emerging market small and medium-sized enterprises (ESMEs). An analysis of the moderating roles played by cross-cultural competencies and digital alliance capabilities in this specific context is also presented.Design/methodology/approachThe study adopted a quantitative research design involving a survey of 231 ESMEs based in the UAE. The authors formulated some hypotheses and tested them by employing hierarchical regression models.FindingsThe findings revealed that IOI positively affects the international market success of ESMEs. The authors further found that both cross-cultural competencies and digital alliance capabilities moderate the relationship between IOI and international market success.Originality/valueThe study advances the international marketing, knowledge and innovation management literature in two ways. First, it is a pioneering study that advances both the theoretical and empirical scholarship regarding the relationship between IOI and emerging market firm international market success by employing an extended resource-based view. Second, it further highlights the role played by cross-cultural competencies and digital alliance capabilities as effective governance mechanisms that moderate the relationship between IOI and international market success.

The impacts of intangible assets on economic performance have increased at various levels, and the positive impacts have been well documented. However, not all firms invest in intangible assets des...

This paper aims to study the performance implications of sustainable product attributes (SPA) of US manufacturing firms. Specifically, it analyzes the influence of aggregate and disaggregated SPA on firm profitability. The study further explores the moderating influence of marketing resource intensity on aggregate and disaggregated SPA and firm profitability relationships. The fixed-effect regression analysis of 433 US manufacturing firms’ panel dataset reveals that aggregate and disaggregated SPA positively influence the firm profitability. The moderation analysis also confirms the positive influence of marketing resource intensity on aggregate and disaggregated SPA and firm profitability relationship. The current paper contributes to the triple-bottom-line and theory-of-the-firm literature streams by empirically studying the influence of aggregate and disaggregated SPA on firm profitability. Furthermore, this study uses the resource-based view to complement theory-of-the-firm model of SPA and empirically study the moderating role of marketing resource intensity between aggregate and disaggregated SPA and firm profitability. Finally, the findings inform the managers of the increased firm profitability by aggregate and disaggregated SPA, and the pivotal role of marketing resource intensity in strengthening the positive influence of aggregate and disaggregated SPA on US manufacturing firms’ profitability.

Purpose Although cross-border e-commerce has become increasingly popular among small and medium-sized enterprises as a foreign market entry mode, research on the determinants of its success is scarce. Drawing on the resource-based view, this study aims to examine the relationship between a firm’s information technology, international marketing and export operations capabilities and its cross-border e-commerce strategic and financial performance. Design/methodology/approach Partial least squares structural equation modeling was used to analyze data from a sample of Italian exporters in the food and beverage industry. Findings The results highlight the mixed effects of information technology, international marketing and export operations capabilities on both e-commerce strategic and financial performance. Moreover, the use of third-party e-commerce platforms reduces the effect of exporters’ information technology capabilities on their e-commerce financial performance. Research limitations/implications The majority of exporters in this study had implemented cross-border e-commerce only recently; hence, longitudinal data on the success factors of e-commerce are not available. Practical implications While cross-border e-commerce may work as an accelerator of the overall export performance, export managers are urged to approach it strategically with a clear medium-term view to develop the required capabilities. Originality/value This study was one of the first to examine the drivers of small and medium-sized exporters’ cross-border e-commerce performance. Moreover, unlike most previous analyzes, it focused on e-commerce as a foreign market entry mode rather than a supplement to offline exporting activities.

Malaysia's biomass industry has a great potential to contribute to the national circular economy that offers a new stream of wealth creation to the nation. Nevertheless, there appears to be a scarcity of research that dwells into the organizational performance in the biomass industry. Therefore, the present study examined the impact of organizational culture, innovation resources, and human resources on organizational performance. The pivotal contribution of this study is to highlight how these factors/resources influence organizational performance. This study delves into organizational performance in the biomass industry through dynamic capabilities theory and resource-based view (RBV) theory.

PurposeThis study aims to determine the simultaneous effect of exporting firms' competitive strategies and capabilities on the achievement of competitive advantages and export performance under the boundary conditions of competitive intensity. In so doing, the study combines the alternative theoretical lenses of the resource-based view (RBV) and the structure–conduct–performance (SCP) paradigm.Design/methodology/approachPrimary data were obtained from 281 Turkish manufacturer–exporter firms operating in different sectors and located in several regions of the country. Structural equation modeling was utilized to test our conceptual framework, which combined the effects of RBV-based and SCP-based factors on competitive advantages and export performance under the moderating influence of competitive intensity.FindingsThis study reveals that unique firm capabilities, specifically informational, relational, and marketing capabilities, and competitive strategies, including differentiation and cost leadership, provide export firms with a competitive advantage and improve their export performance in foreign markets. Furthermore, competitive advantages partially mediate the effects of competitive strategies and unique firm capabilities on export performance. Finally, unexpectedly, and contrary to most of the existing literature, we find that competitive intensity negatively moderates the link between service advantages and export performance.Originality/valueThis research offers a comprehensive view of manufacturer–exporter firms' export performance by accounting for the overlooked simultaneous effect of firm capabilities and competitive strategies through the mediation of competitive advantages and under the boundary conditions of competitive intensity.

Micro and small enterprises sector is considered as very important in growing the economies of many countries, especially the developing nations. In Kenya, the Micro and small enterprises sector is an important contributor to the growth of the economy through facilitation of trade and creation of employment. While various interventions have been made to grow this sector, the enterprises have continued to perform poorly, struggle to survive and a large number die off. This study sought to investigate the effect of mobile credit on performance of micro and small enterprises. The study was to determine the effect of accessibility, the effect of the cost, the effect of mobile credit loan amount and the effect of regulation on performance of micro and small enterprises. The study was anchored on various theories of Resource based view, Dynamic capabilities, Diffusion of technology, Credit rationing, and the asymmetry of information. The study found out that the accessibility of mobile credit, the Loan amount and the regulation have significant positive effect on performance, while the cost of mobile credit has a significate negative effect on the performance of micro and small enterprises. The study concluded that mobile credit is an essential source of credit to micro and small enterprises. Keywords: Mobile credit, Micro and small enterprises, Performance, Resource based view, Dynamic capabilities theory.

Purpose Environmentally-friendly certifications have increased over the past decade within food supply chains. Although a large body of literature has explored the drivers leading firms to adopt such certifications, it has not closely examined the strategic motivations associated with their adoption. This paper aims to investigate an environmentally-friendly certification, VIVA, examining its role as an alternative form of supply chain governance. The aim is to investigate the drivers affecting the adoption of VIVA and to assess managerial perceptions related to transaction-related characteristics and the firm’s internal resources and capabilities. Design/methodology/approach This study draws upon both an extended transaction cost economics perspective, which is based on transaction risks and the resource-based view, which examines a firm’s internal resources. A survey was conducted via a structured questionnaire sent to all of the wine producers in charge of the decision regarding whether to adopt VIVA certification. A Hierarchal Bayesian Model was applied to analyse questionnaire responses. Such a model allows us to specify the probabilistic relationship between questions and latent constructs and to carry over uncertainty across modelling levels. Findings The adoption of this environmentally-friendly certification is envisioned as a tool to curb internal risks, and thus to manage behavioural uncertainty within the supply chain. A high level of exposure to exogenous transaction risks discourages firms from adopting VIVA certification. The certification system is not perceived as a promoter of operational capabilities. Managers are more likely to implement the certification when they expect that its adoption will leverage their potential knowledge of the supply chain or prompt new and better collaborations with the suppliers. Therefore, the certification can become a resource that interacts with the capabilities of the firm, expressing complementarities that stimulate the formation of dynamic capabilities. Research limitations/implications The identification of drivers from the two theoretical perspectives offers insights into the attributes that are perceived as important by managers and which, therefore, could be leveraged to foster the adoption of the environmental certification. The external validity of the study could be improved by extending the sample to other certifications and supply chains. Originality/value The study offers a different perspective on environmental certification. It demonstrates that considering the certification as an alternative form of supply chain governance opens up a set of efficiency and strategic considerations that could be addressed to promote the effectiveness of an environmental strategy within a supply chain

The competitiveness and growth of the hotel industry have propelled a lot of interest by researchers. Premised on the resource-based view, dynamic capability and competitive advantage theories, thi...

This study aims to classify a set of circular supply chain collaboration attributes and propose a cause-and-effect framework in the Vietnamese healthcare industry. A circular supply chain is argued...

The Zoltners, Sinha, Sahay, Shastri, and Lorimer (2021) article provides an excellent macro model of how sales digitization is related to organizational success. Additionally, the authors provide r...

Despite their rapid internationalization, early internationalizing firms (EIFs) struggle to sustain their growth over time. Among the factors influencing their internationalization process, the diversity of human resources, and particularly its management, has yet to be studied. Building on different perspectives of diversity management, through the lens of the resource-based view, this study explores the role of diversity management during EIFs’ internationalization process. The results of a multiple-case, qualitative study of French EIFs show that prevailing perspectives on diversity management within EIFs change with the nature of diversity as a resource (strategic, ordinary, or negative), with different influences on the firms’ progress along the phases of the internationalization process. The findings highlight the importance of adopting a learning perspective on managing diversity, including specific management practices, during the transition between the entry and post-entry phases of EIFs’ internationalization process. This study thus suggests several propositions and theoretical contributions, along with managerial recommendations.

Competitive dynamics (CD) and the resource-based view (RBV) emerged simultaneously from the study of strategy more than three decades ago. The two subfields have advanced since then to occupy established positions in strategic management. Generally, CD is outward-focused and interested in a firm’s moves and countermoves in the marketplace. The RBV looks inward, examining a firm’s internal organizational capabilities, its tangible and intangible resources. They have mostly been investigated independently; with limited exceptions, researchers have yet put together the two pieces of internal capabilities and external competitive profile. Consequently, we have only a fragmented snapshot of the firm’s core strategic elements and behaviors. Here, we compare and contrast the two perspectives along a number of dimensions such as focus of attention and conception of competitive advantage. Based on this understanding, we explore the CD-RBV interface, specifically how central elements of these research streams may be considered jointly to expand our understanding of firm behaviors and outcomes. We highlight limitations and lapses in the literature and suggest directions for future researchers interested in developing new theories connecting the intellectual boundaries of these two important strategy subfields.

PurposeTo explore building blocks of corporate value creation that can be effectively assembled by practicing managers to deconstruct corporate value creation into distinctive models (customer value creation and shareholder value creation) and stages (resource assembly and capability leverage) in the Indian Information Technology enabled Service (ITeS) industry for exploring efficiency differentials between large Indian ITeS companies.Design/methodology/approachData envelopment analysis (DEA) technique has been used to uncover efficiency differentials in large Indian ITeS companies that represent 90% of all the ITeS companies listed in the Indian stock market and 13.9% of all companies listed in the Indian stock market, across industries.FindingsThis paper documents a nuanced understanding of interrelationships among activities that influence corporate value creation and comprehensively highlight those dominant activities that contribute to corporate value creation in an ITeS industry setting. The study demonstrates as to how companies can become more efficient in such crucial value creating components that result in superior corporate value. The explicating methodology proposed in this study can be handy for managers and can be extrapolated to other industry and national settings as well.Practical implicationsDeconstructing corporate value creation into granular models, customer value creation and shareholder value creation and further into two stages, being assembling resources to create capabilities and leveraging such capabilities to deliver value, this study provides hands-on value for managers in ITeS companies to create value.Originality/valueFusing the value creation and appropriation (VCA) framework, the resource-based view (RBV) and its extensions, this paper builds a robust theoretical model specification that is empirically tested.

This study focuses on the value of resources and service chains to maximise logistics performance outcomes within the setting of seaport logistics. From the perspective of logistics service provide...

Government agencies can shape and impact organizations’ opportunity sets and corresponding competitive environments. Therefore, firms realize that maintaining a close relationship with government a...

Purpose: Sri Lankan government has recognized small and medium enterprises (SMEs) as the backbone of the economy. Export is the most adapted internationalization mechanism by SMEs. Export activities of SMEs are caused to reduce trade balance deficit, increase capital inflow, increase employment, create balance of payment surplus and increase the production. In the most of the developing countries, considerable amount of total export activities is performed by SMEs. However, a few numbers of SMEs are exporting in Sri Lanka. The purpose of this study is to identify the factors that influence on export engagement of SMEs in Sri Lanka. Methods: Explanatory research approach followed by quantitative method used in this study. Based on literature, financial capability, management capability, government policy and marketing information were selected as influencing factors on export engagement of SMEs. Scope of the study consisted with SMEs in the manufacturing sector, located in Western province. A structured questionnaire was used for the primary data collection. Findings: The survey was conducted on 151 SMEs. The multiple regression analysis results revealed that 72.6% of the variation in export engagement can be explained by financial capability, management capabilities and government policies. However, marketing information was not a significant determinant of export engagement of SMEs. Among the factors, management capability recorded the highest beta value (beta = 0.487) followed by financial capabilities. Research Implications: This study helps to enhance the development of the country through assisting the SMEs to enhance their exports by having a better understand about the factors influence for export engagement of SMEs. The SMEs which are not engaged with export, can get a knowledge about the most important factors of the export-engaged enterprises have. Further Study Suggestions: Future studies might concern in depth analysis of problems face by SMEs when engaging with exports and remedies for those problems by using many sample size within a long period of time.

The defence industry is considered an important element of the overall defence capability of any country. Due to this, developing nations across the world have acknowledged the benefits of building a defence industrial base. Hence, there is rising interest in the defence sector to develop a strategic alliance for analysing the role, effect and nature of different types of cooperative behaviour among transnational companies. Hence, this paper intends to explore the antecedents that can help to assess the alliance outcomes for Malaysia-Japan defence companies. The study was based on RBV (resource based view), to discuss the alliance outcomes for both of these countries’ defence manufacturing companies that can help to gain access to their resources for the purpose of increasing their value through a suitable combination of resources. Moreover, four organizational success factors of alliance management are also discussed as a part of the framework explored in this study. This study provides meaningful insights for the defence manufacturing company managers and administrators to plan their current and future investments in building up the organizational success factors for alliance performance discussed in this study to achieve competitive advantage and sustainability in the long run.

Whereas strategic alliances have been widely used to foster product innovation, the extant literature offers inconsistent arguments and inconclusive empirical evidence regarding how the number of p...

We describe the interplay between the resource-based view (RBV) and strategic human resources (HR)/human capital (HC) literatures in select areas of particular interest. In each area, we aim to highlight key issues, review relevant evidence where available, and identify future research needs. We begin by reviewing research on HR-related firm heterogeneity. We then discuss best practices in HR, including evidence of the large apparent value they create. We also consider different views on the value and ease of imitation of best practices, including implementation challenges. Next, we briefly address the key roles of microfoundations and complementarity in helping understand the potential for value creation and value capture through the use of best practices. We then ask whether the use of best practices in the pursuit of competitive parity might warrant greater attention as this may be where the largest potential gains can be made. Finally, we consider a number of developments in the strategic HC literature, especially those related to firm-specific human capital (FSHC). We raise questions with views on issues such as the consequences of FSHC for workers; the definition and measurement of FSHC; whether worker immobility, a key to value capture, is good from a social return (or even a firm) return perspective; and the relative emphasis on value capture and value creation.

The resource-based view of the firm has become dominant within the field of strategic management, yet it has had surprisingly little influence within organization theory. In this article, we document the divide between strategy and organization theory and propose an interpretation. Choices of theories are largely driven by a researcher’s dependent variables, and the questions “Why do firms do what they do?” and “Why do some firms perform better than others?” can have distinct answers. Thus, strategic management scholars and organization theorists are like howler monkeys and spider monkeys, coexisting peacefully in the same ecosystem by dining on different dependent variables. We further speculate on the looming existential crisis for both fields as traditional firms are increasingly unsustainable due to the transformation wrought by the digital revolution in product markets and the markets for capital, labor, and supplies.

Mushroom is one of the main commodities of agroindustry which experienced an increase in production due to the existence of consumer awareness to consume healthy products. The popularity causes the development of the mushroom processing industries in Malang. To improve the quality of products, mushroom SMEs need to further develop the company performance. Company performance can be achieved with an effective competitive advantage. Competitive advantage is a factor that a company should have in order to succeed in business. The fundamental source of competitive advantage is assets. This research use a Barney’s theory in determining strategic resources to achieve competitive competitiveness called Resource-Based View (RBV). The purpose of this research are to determine the influence of: (1) tangible assets on competitive advantage strategy, (2) intangible assets on competitive advantage strategy, (3) company capability on competitive advantage strategy, and (4) competitive advantage strategy on company performance. The exploration techniques utilised are quantitative and Partial Least Square (PLS). The results showed that the tangible assets and company capability have a strong influence and positively contribute to competitive advantage strategy, meanwhile intangible assets have a weak influence and negatively contribute to competitive advantage strategy, and competitive advantage strategy has a strong influence and positively contributes to company performance.

PurposeThis study examines the relationship between absorptive capacity, team culture, competitive intelligence awareness and entrepreneurial behavior with strategic flexibility and sustainable competitive advantage and further investigates the moderating influence of innovativeness on the relationship between strategic flexibility and sustainable competitive advantage in the hotel industry.Design/methodology/approachThe current study applied a quantitative research method to collect data from five-star and luxury hotel management staff in Malaysia, using questionnaire surveys. A total of 550 questionnaires were distributed, and the researcher received 457 valid questionnaires. The hypotheses were tested using the SEM (structural equation modeling) analytical technique.FindingsThe salient findings of this research are (1) absorptive capacity, team culture and competitive intelligence awareness have a significant impact on strategic flexibility and sustainable competitive advantage, (2) entrepreneurial behavior has an insignificant effect on strategic flexibility and sustainable competitive advantage, (3) strategic flexibility has a significant impact on sustainable competitive advantage, (4) innovativeness actively moderates on the relationship between strategic flexibility and sustainable competitive advantage.Research limitations/implicationsThe study described here introduces a sustainable competitive advantage as a new and dynamic approach to explore how its outcomes or performance can be enhanced in the hotel industry. The outcomes of sustainable competitive advantage can help the long-term survival of hotels.Originality/valueThe present study suggests and explains the role of sustainable competitive advantage in the hotel industry and offers new insights into the competitive hotel industry's gaps and weaknesses.

Some scholars and practitioners argue that markets have become hypercompetitive, decreasing the opportunities for sustainable competitive advantage. We test for increasing competition in a panel of...

PurposeThis paper investigates how entrepreneurs in an emerging economy in Latin America bundle resources to develop capabilities related to entering new markets whilst creating value for their firms. In particular, the paper explores how individual resources (experiential knowledge and social networks) impact on entrepreneurs' capabilities to exploit new market opportunities.Design/methodology/approachThe paper employs a case study approach to investigate five cases of entrepreneurs driving technology-based businesses in Brazil. Effectuation theory is used as a lens to ascertain how resources impact on the decision-making capabilities of the entrepreneurs and firms. The research adopts a longitudinal approach, capturing data from thirty interviewees over a period corresponding to domestic and international market entry of these TechnoLatinas ' businesses.FindingsThis paper builds on previous resource-based view (RBV) studies by supplementing evidence that individual and firm-level resources determine the development of capabilities to exploit new market opportunities for new firms. The presence of experiential knowledge (in particular, business planning, market analysis and experimentation) and social networks (individual resources) drives to a mix of causal and effectual heuristics; however, in the presence of firm-level resources (human and financial capital), new entrepreneurs tend to shift towards a stronger causal orientation.Research limitations/implicationsThe case companies are high technology, knowledge-intensive Brazilian start-up firms sharing a similar institutional setting. Further research should include a more diverse range of cases including other sectors and other countries in Latin America adopting quantitative design to confirm and generalise these findings.Practical implicationsFor policymakers and practitioners, this research provides guidelines on how entrepreneurs' know-how and social networks can be enhanced by providing access to the international market to speed up the growth of a new firm. For entrepreneurship educators, this research explains how effectual orientation (EO) or causal orientation (CO) influences the entrepreneur to exploit the available resources to maximise the growth of businesses in the international market.Originality/valueThe resource-based literature usually ignores the challenges faced by new resource-constrained firms and the individual-level resources of the entrepreneurs. This research contributes to the RBV, entrepreneurship and internationalisation debate by identifying the interplay between RBV and effectuation theory, particularly by bringing forward the impact of individual resources and capabilities of entrepreneurs to make the decision to enter a new market. Moreover, by using the effectuation theory, the research contributes to a better understanding of how resources are managed to create value and growth in new firms.

Building on Resource-Based View (RBV) and Institutional Theory (IT), we decided to study the internal and external factors that affect the choice between different growth strategies in small and medium enterprises (SMEs) in an emerging economy. We started identifying that there is a direct relationship between technological resources and an organic growth strategy, financial resources and an acquisitive growth strategy, and networking capabilities and a hybrid growth strategy. We argue that the intensity of these relations is moderated by institutional factors, such as a country’s intellectual property protections (for organic strategies), credit access (for acquisitive strategies), and trust in the business environment (for hybrid strategies). We based our findings on 450 face-to-face surveys with CEOs from firms in the Electronic Technology, Information, and Communication Sector (ETICS) in Mexico. Managerial implications are also discussed in the paper, as well as future avenues of research.Building on Resource-Based View (RBV) and Institutional Theory (IT), we decided to study the internal and external factors that affect the choice between different growth strategies in small and medium enterprises (SMEs) in an emerging economy. We started identifying that there is a direct relationship between technological resources and an organic growth strategy, financial resources and an acquisitive growth strategy, and networking capabilities and a hybrid growth strategy. We argue that the intensity of these relations is moderated by institutional factors, such as a country’s intellectual property protections (for organic strategies), credit access (for acquisitive strategies), and trust in the business environment (for hybrid strategies). We based our findings on 450 face-to-face surveys with CEOs from firms in the Electronic Technology, Information, and Communication Sector (ETICS) in Mexico. Managerial implications are also discussed in the paper, as well as future avenues of research., Empleando los principios de la Teoría de Recursos y Capacidades (RBV) y de la Teoría Institucional (IT), decidimos estudiar los factores internos y externos que afectan la elección entre diferentes estrategias de crecimiento en empresas pequeñas y medianas (Pymes) en una economía emergente. Iniciamos identificando que hay una relación directa entre recursos tecnológicos y una estrategia de crecimiento orgánico, recursos financieros y una estrategia de crecimiento por adquisiciones, y capacidades relacionales y una estrategia de crecimiento híbrida. Argumentamos que la intensidad de estas relaciones es moderada por factores institucionales del entorno, como la protección de un país sobre la propiedad intelectual (para estrategias orgánicas), acceso al crédito (para estrategias de adquisición), y confianza en el ambiente empresarial (para estrategias híbridas). Basamos nuestros descubrimientos en 450 encuestas cara a cara con directores de empresas en el sector de tecnología electrónica, información y comunicación (ETICS) en México. En este artículo también se discuten implicaciones gerenciales, así como futuras líneas de investigación.

PurposeThis study aims to investigate whether human capital readiness affects business performance, and if so, whether the effect is mediated by global market orientation.Design/methodology/approachThis is a quantitative study employing partial least square structural equation modeling (PLS-SEM) to test the hypotheses. Using a survey method, the data were collected using both online and offline questionnaires. As many as 433 owners/managers of micro-, small- and-medium-sized enterprises (MSMEs) in the East Java Province of Indonesia participated in this study. A mediating research framework was developed to investigate the mediating role of global marketing orientation on the human capital readiness–business performance relationship.FindingsThe results show that human capital readiness has a direct and positive effect on business performance. Further analysis reveals that global market orientation partially mediates the effect of human capital readiness on business performance.Research limitations/implicationsFirst, this study focuses on the MSMEs in the East Java Province of Indonesia. Caution needs to be taken if the results are generalized to other regions. Second, it employed a survey method that is commonly criticized as having the potential to be biased.Practical implicationsThe findings provide a more comprehensive understanding of owners/managers of human capital readiness and how it should be improved to better execute global market orientation strategies to achieve the desired business performance.Social implicationsBecause MSMEs play a crucial role in society, this study provides a general model to improve the welfare of society by enhancing the MSMEs' business performance. By understanding its antecedents, namely, human capital readiness and the global market orientation, improvements can be made.Originality/valueHuman capital readiness has been rarely examined in previous studies. This is the only study applying the constructs of human capital readiness, global market orientation and business performance to the Indonesian MSME research setting.