Linking routines to operations capabilities: A new perspective

A typical approach to studying capabilities in the operations management literature is to assess the intended or realized competitive operational performance and their contribution to business and organizational objectives. While it is crucial to identify the operational performance that helps create competitive advantage, it is equally important to understand the means for delivering the needed performance at the operational level. Drawing on the resource-based view (RBV), we argue that routines are a critical source of operations capabilities and subsequently investigate operations capabilities by means of their underlying routines. Because a common problem to studying capabilities is the ambiguous and confusing definitions, we conduct an extensive literature review to address the semantic confusion among various definitions of capabilities and delineate it from other related terms. We identify improvement and innovation as two critical plant level capabilities, each consisting of a bundle of interrelated yet distinct routines. We then empirically measure the two capabilities as second-order latent variables and estimate their effects on a set of operational performance measures. The results suggest that routines form internally consistent bundles which are significantly related to operational performance. This supports our notion of “capabilities as routine bundles” that are difficult to imitate and thus a source of competitive advantage.     

Are technology gatekeepers renewing clusters? Understanding gatekeepers and their dynamics across cluster life cycles

The cluster literature assumes that technology gatekeepers (TGs) shape a district's learning process and its evolution. However, analysis of the resilience of TGs, and their role across different stages of the cluster life cycle (CLC), is absent. Instead, most of the evidence that has been produced is set at a particular stage of the CLC. This article seeks to use a qualitative case study to understand the dynamics of TGs, and their knowledge creation and diffusion capabilities in the CLC renewal period. This is a stage less studied in the literature. Further, the article explores TG resilience across different stages of the CLC. Our results show that not all TGs are resilient and necessary for cluster renewal. In addition, they are not sufficient for fostering disruptions: their manifest reluctance to destroy the status quo and their network centrality makes necessary the entrance of new firms with new knowledge. TGs are necessary because they facilitate a cluster's transition across stages thanks to their powerful control of the most vital aspect of clusters: networks.     

Effects of Information Technology Capabilities on Strategic Alliances: Implications for the Resource‐Based View

This paper adopts a contingency approach to the resource‐based view (RBV) of the firm and seeks to establish boundary conditions for the value of certain information technology (IT) capabilities. We first identify inter‐organizational alliances as a specific strategy context in which IT capabilities are particularly valuable. We then consider more detailed boundary conditions that can shape the value of these capabilities within the alliance context. Our study shows that firms with better IT capabilities can derive greater value from an alliance, yet this effect also varies across different types of alliances depending on an individual alliance's characteristics. Specifically, IT capabilities are more valuable for alliances with a non‐equity governance structure, as well as those involving a high degree of interdependence between partners. We highlight the implications of our findings for opportunities to advance the RBV.     

Text and metatext in the resource‐based view

This paper distinguishes between text and metatext in the resource‐based view (RBV) – that is, the actual words and logic fundamental to the RBV (the text) and the traditions, interpretations and applications of the theory (the metatext). It argues that Kaufman's ( 2015 ) criticism of the RBV as applied to strategic human resource management actually focuses on RBV metatext and not text. Indeed, unlike some RBV metatext, RBV text actually has a great deal to say about research and practice in strategic human resource management.     

Identifying the moderating influences of external environments on new product development process

Few studies have attempted to investigate the following: (1) whether the firm's core capabilities or resources and routines (e.g., integration among functions) for product development, in the presence of environmental dynamics, become incumbent inertia or core rigidities? and (2) how environmental dynamics affect the influence of a project team's implementation capabilities in the new product development (NPD) process on new product launch performance? This study approaches these questions by addressing the three most indispensable NPD process components (i.e., marketing, technology, and organization) and incorporating new moderators, namely pace of technological change and competitive intensity, within a single study. It specifically examines the extent to which the latter two external environmental variables moderate the impact of NPD practices on new product launch outcome. Data obtained from a survey of NPD projects developed and launched by Korean manufacturers suggest that environmental dynamics would reduce the contribution of functional-specific sources of advantage (resources) and project-specific sources of advantage (e.g., integration among functions) to organizational implementation capabilities (i.e., a project team's proficiency in executing NPD activities). Moreover, the research also shows that market dynamics may increase the contribution of organizational implementation capabilities to NPD project performance.     

Training as a generator of employee capabilities

In the current global economic environment, companies aiming to obtain lasting competitive advantages must be aware of those abilities that differentiate the company from its competitors. In this sense, personnel training may stimulate the development of certain capabilities related to the company's human resources, which could support this differentiation and hence the desired competitive advantage. For this reason, we have considered as an aim of this work to analyse personnel training as a policy for the development of the organisation's human capital, and its influence on the impulse of three differentiating capabilities, namely the employees' knowledge or know-how, the generation of a collective mind and the organisational commitment of personnel. In this article, we shall first analyse from a theoretical point of view the influence of the company's training policies on the development of certain differentiating capabilities. Then, we shall empirically prove this theoretical relation within the framework of the different business units of a financial institution.     

Purchasing's strategic relevance

Recently Ramsay (Eur. J. Purchasing Supply Manage. 7 (4) (2001) 257) applied the resource-based view of the firm (RBV) to argue that purchasing is a largely irrelevant activity from a strategic management point of view. In this paper it is argued to the contrary since there is a wider theoretical base underlying strategic management, more recent developments in the RBV suggest that purchasing is indeed a strategic activity, and much empirical evidence demonstrates that purchasing and supply management contribute to sustainable competitive advantage. A systematic set of criteria is then put forward, which helps purchasing management researchers to assess whether studied phenomena have strategic impact.     

Applying the reduce,reuse, and recycle principle in the hospitality sector: Its antecedents and performance implications

Although the literature on eco-friendly strategies followed by firms is abundant, the focus on the reduce, reuse, and recycle (3Rs) policies as the cornerstone of environmental sustainability is scarce. This study examines the 3Rs environmental strategy among 143 large organizations in the hospitality industry. We use the resource-based view (RBV) of the firm theory to test the strategy's determinants and its impact on business performance on a suggested conceptualization level. As hypothesized, green corporate governance and environmental management systems, along with slack financial resources, were found to positively influence the adoption of a 3Rs environmental strategy. In turn, the implementation of the latter leads to superior business performance, measured in terms of operating profits and Tobin's Q. The study has several implications on a theoretical, managerial, and public policy level where intriguing directions for future research are provided.     

Internal labour flexibility from a resource-based view approach: definition and proposal of a measurement scale

The dynamic nature of current competitive environments has motivated managers to identify sources of flexibility based on the organisation's human resources. In this regard, internal labour flexibility emerges as a valid strategy to counteract environmental changes, based on the adaptability of the organisation's current workforce to face non-routine circumstances and events that require creativity and initiative. However, despite recent interest in the notion of internal labour flexibility, there is no commonly accepted definition of this term. Currently, there are several competing definitions of the construct, along with a variety of operationalisations. Some integration of these approaches is needed to ensure that our knowledge of internal labour flexibility grows cumulatively. In this study, we have sought to address some of these limitations by theoretically conceptualising and empirically validating a scale to measure internal labour flexibility from the resource-based view (RBV). The application of structural equation modelling to a sample of 226 Spanish firms confirmed the suggested dimensionality of the internal labour flexibility scale, which distinguishes between employees' intrinsic flexibility, skill malleability, behavioural malleability and relational flexibility. Tests of reliability and validity confirmed the appropriateness of this measurement scale.     

Which Resources Matter How and Where? A Meta‐Analysis on Firms’ Foreign Establishment Mode Choice

Firm resources play an important role in explaining the foreign establishment mode choice. However, a theoretical framework that simultaneously a) differentiates between heterogeneous types of resources, b) provides a rationale that consistently explains how firms adapt their establishment mode choice to their resource base, and c) reflects on contextual factors that intervene in the consistency of the direct relationships is largely missing. The present paper draws on the resource‐based view (RBV) to develop such a framework. More specifically, we study the effect of knowledge‐based and experience‐based resources on a firm's establishment mode choice and the moderating impact of cultural distance on these relationships. We validate our theoretical framework by a meta‐analysis (integrating 31 studies with 13,559 establishment mode choices) and find that knowledge‐based resources enhance a firm's propensity for greenfield investments, while experience‐based resources more likely lead to acquisitions. Further, cultural distance increases knowledge‐intensive firms’ preference for greenfield investments.     

The RBV theory foundation of strategic HRM: critical flaws,problems for research and practice,and an alternative economics paradigm

The resource‐based view (RBV) of the firm is a guiding paradigm for strategic HRM research. This article explores the RBV–strategic HRM intersection, identifies and critiques RBV weaknesses and problem areas, develops new implications for RBV–strategic HRM theory and empirical work, and develops an alternative economics‐based decision model for making HRM choices. The article focuses on four RBV–strategic HRM dimensions: HRM performance and the ‘no rules for riches’ proposition; alternative definitions of value and competitive advantage and implications for strategic HRM's dependent variable; neglect of marginal decision rules and consequent misprediction of optimal HRM adoption; and the impact on employee relations of RBV‐guided rent‐capture practices. Numerous implications for theory and practice are developed; also suggested is a new paradigm approach for strategic HRM theory.     

A fresh look at the contribution of project management to organizational performance

A better understanding of organizational performance and the contribution that project management can make is the aim. The article adopts the “Competing Values Framework,” a rich framework that is well established both theoretically and empirically but is not well known in the field of project management. The framework is summarized and applied in an empirical investigation of the contribution of project management in general and project management offices (PMOs) in particular to organizational performance. The examination of 11 case studies revealed multiple concurrent and sometimes paradoxical perspectives. The criteria proposed by the framework have been further developed through the identification of a preliminary set of empirically grounded performance indicators. The empirical results contribute to a better understanding of the role of project management generally and PMOs specifically. They also demonstrate the usefulness of this framework for the study of project management's contribution to organizational performance.     

The long shadow of public policy; Barriers to a value-based approach in healthcare procurement

Procurement in the UKs National Health Service (NHS) is facing its most significant financial challenge. Despite the sheer scale and complexities of the public healthcare sector, the Government's solutions are all too often packaged as "collaborate more", "standardise products" and "leverage spend". Unfortunately, these over simplistic solutions take a myopic view of market drivers, conflate spend with potential savings and fail to deliver value. Many contracts have already been commercially optimised yet the funding crisis continues to deepen. New value-based procurement approaches are needed to drive longer-term innovation and cost reduction and to move debates from efficiencies to embrace effectiveness in integrated supply chains. In this research, we adopt the resource-based view (RBV) as a lens to explore the extent to which NHS resources support the strategic adoption of value-based approaches. An empirical case study on a regional cluster of six NHS Trusts in England, confirms the dominance of narrow price-based approaches that create barriers to moving towards longer-term, valuebased procurement. The antecedent roots of price-based approaches are unpicked through a hermeneutic analysis of recent Government commissioned reports to show how these have set the tone, culture and priorities for healthcare procurement in the UK. The analysis provides explanatory power to the case study by illustrating how Government reports have led to, and legitimised the dominance of price-based approaches and caused relational and resource-based barriers to adopting value-based procurement, despite stakeholder enthusiasm. The findings provide unique insights into why public procurement has struggled to reach beyond its traditional cost orientated scope. We contribute to an extended consideration of the RBV in public organisations through identifying the role of the policy environment in determining and legitimatising an organisation's strategic direction.     

Capabilities exchange through business interaction: An empirical investigation of a client–IT supplier relationship

This article focuses on the opportunities for capabilities exchange within a specific business-to-business context: the relationship between a client and an information technology (IT) supplier. Research on the features of this type of relationship, although fairly extensive, has focused on IT implementation issues, relationship between IT resources, organisation performance and competitive advantage, IT outsourcing relationships and definition of IT capabilities. However, our understanding of the context where IT capabilities are exchanged within consultancy projects and how this exchange emerges is rather limited. The paper aims to bridge this gap by adopting the Industrial Marketing and Purchasing (IMP) group's interaction approach as a tool for conducting an in-depth investigation of a case study to analyse the context, the parties and the interactions through which IT capabilities are exchanged. The research reveals that interpersonal relationships between users and consultants within consultancy projects are crucial to establish a long-lasting and stable relationship. As a result, during consultancy projects IT-related resources, in the form of IT physical infrastructures, human IT resources and IT intangible resources are exchanged and combined to create or enhance IT capabilities. Furthermore, we also claim that the success of such an exchange depends very much on the degree of social and interpersonal exchange.     

An empirical test of the model on managing the localization of human resources in the People's Republic of China

The localization of human resources has been a major objective for many transnational corporations (TNCs) in the People's Republic of China (PRC). After a review of related literature and in-depth interviews with six TNCs, Wong and Law (1999) developed a model explaining the localization process in the PRC. Based on this localization model, this study empirically tested the antecedents of successful localization results of 139 TNCs in the People's Republic of China. Results showed that, (1) whether or not localization had been identified as an important goal, (2) overall localization planning efforts and (3) actual human resources management practices were important factors leading to successful localization of expatriate positions. Implications of the results are discussed.     

Being ‘Green and Competitive’: The Impact of Environmental Actions and Collaborations on Firm Performance

In this paper, we seek to enhance the understanding of the link between environmental management and firm performance, so contributing to the debate of being “green and competitive”. Relying on the resource‐based view, we study the effect of different environmental management capabilities on a firm's market and image performance. In particular, we analyze the capabilities to implement product and process‐related environmental actions with different types of environmental focus (materials, energy, pollution) and the capabilities to develop environmental collaborations with different types of actors (both business actors and non‐business actors). To this aim we conducted a survey on 122 Italian companies. Results show that market performance and image performance have partially different antecedents. Specifically, a firm's market performance is positively affected by the capabilities to implement environmental actions with a focus on energy and pollution and to develop environmental collaborations both with business and with non‐business actors. On the other hand, a firm's image performance is positively affected by the capabilities to implement environmental actions with a focus on materials and to develop environmental collaborations with non‐business actors. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

The Drivers of Multinational Enterprise Subsidiary Entrepreneurship in China: A New Resource‐Based View Perspective

This paper extends the resource‐based view (RBV) of the firm, as applied to multinational enterprises (MNEs), by distinguishing between two critical resource dimensions, namely relative resource superiority (capabilities) and slack. Both dimensions, in concert with specific environmental conditions, are required to increase entrepreneurial activities. We propose distinct configurations (three‐way moderation effects) of capabilities, slack, and environmental factors (i.e. dynamism and hostility) to explain entrepreneurship. Using survey data from 66 Canadian subsidiaries operating in China, we find that higher subsidiary entrepreneurship requires both HR slack and strong downstream capabilities in subsidiaries, subject to the industry environment being dynamic and benign. However, high HR slack alone, in a dynamic and benign environment, but without the presence of strong capabilities, actually triggers the fewest initiatives, with HR slack redirected from entrepreneurial experimentation towards complacency and inefficiency. This paper has major implications for MNEs seeking to increase subsidiary entrepreneurship in fast growing emerging markets.     

Human Resource Systems and Ethical Climates: A Resource‐Based Perspective

We know very little about how ethical climates are built and the potential role of a firm's HR system in facilitating the development of this resource. The resource‐based view (RBV) of the firm suggests that human resource systems directly influence a firm's performance through the development of resources that are deeply woven in a firm's history and culture. How this occurs though has not been thoroughly considered in the research literature. Drawing on the theoretical insights from the resource‐based view of the firm, this article explores how HR systems can foster the development and maintenance of five types of ethical climates. In so doing, this article improves our conceptual understanding of why ethical climates may be seen as having strategic value for firms and how HR systems may influence that value. In addition, it contributes to theory by extending the domain of the resource‐based view of the firm by exploring its integration with the varied types of ethical climates. © 2014 Wiley Periodicals, Inc.     

Mutuality in the management of human resources: assessing the quality of alignment in employment relationships

How can managers improve the alignment of organisational and individual interests in the management of human resources? This article integrates a diverse set of literatures to propose three tests of mutuality in employment relationships: (a) the quality of the match between the organisation's needs for human capabilities and the individual's needs to deploy and develop them; (b) the extent to which the organisation's dual needs for commitment and flexibility are aligned with the needs of individuals for security and community; and (c) the extent to which both parties feel they are making a worthwhile return on their investment. These tests form a starting point for assessing and modelling the quality of employment relationships in particular contexts.     

The complementarity of IT and HRM capabilities for competitive performance: a configurational analysis of manufacturing and industrial service SMEs

ABSTRACT

Building on the resource-based view (RBV) perspective, we analyse the combined effects of two highly-valued organizational resources, namely information technology (IT) capabilities and human resource management (HRM) capabilities, on the competitive performance of small and medium-sized enterprises (SMEs). Three resource configurations are derived from data on 227 SMEs (121 from the manufacturing sector and 106 from the industrial services sector) through a cluster analysis. These resource configurations are labelled IT Capabilities-dominant Configuration (ITC), e-Business Capabilities-dominant Configuration (e-BC), and HRM Capabilities-dominant Configuration (HRC). This last configuration is the best-performing, followed by the e-BC, with the ITC as the worst-performing. The results also show that manufacturing and service firms are very unevenly distributed within HRC and ITC configurations, suggesting notable differences between the two sectors regarding their respective IT and non-IT capability-building. The fact that service SMEs are overwhelmingly represented (93%) in the worst-performing configuration and completely absent (0%) in the most effective configuration while displaying the strongest IT infrastructure capabilities confirms that the IT productivity paradox is aggravated in service SMEs and calls for further research on this issue.