Resource-performance relationships in industrial export ventures: The role of resource inimitability and substitutability

Drawing on resource-based theory and insights from qualitative fieldwork we examine resource drivers of export venture performance in industrial firms using primary data from German and UK industrial-goods manufacturers. Our results indicate that while the levels of individual export venture resources are not directly related to export venture performance in the firms in our sample, many of the resources are related to two important characteristics of resources — namely the inimitability and non-substitutability of the mix of resources available to the export venture. Furthermore, we find that that resource inimitability and non-substitutability are directly related to export venture performance. Taken together these results demonstrate the important role that inimitability and non-substitutability play in mediating the resource-to-performance relationship in the industrial goods export ventures in our sample. Our study provides some of the first direct evidence supporting a key premise of the resource-based view of the firm — that the competitive imitability of a firm's resources and the inability of rivals to use substitute resources to execute a similar strategy are important drivers of firm performance.     

Infusing flexibility into business-to-business firms: A contingency theory and resource-based view perspective and practical implications

Two questions motivate this research. What conditions foster flexibility and how might business-to-business firms infuse flexibility throughout their organizations? A synthesis of the strategic management, marketing, and new product development literature was undertaken, which provided an updated interdisciplinary focus. Contingency theory and the resource-based view perspective were utilized to enhance our knowledge and emphasize the importance of flexibility and organizational performance. Superior intra- and inter-firm flexibility are proposed to influence business-to-business marketplace success.     

A dynamic model of growth phases and survival in international business-to-business new ventures: The moderating effect of decision-making logic

The growth and survival of international new ventures (INVs) has not been the subject of extensive in-depth qualitative study and our understanding of their decision-making is deficient. On the basis of empirical analyses in a small and open economy, a dynamic model was developed that explains the growth phases through which INVs pass as they mature in the high-technology business-to-business field. The model also recognizes rapid advancement, survival crises, and retrenchment. Propositions were devised regarding the impact of opportunities, resources and capabilities, entrepreneurial orientation, and learning on growth phases and survival. A novel finding is that the decision-making logic moderates the impact of these factors. These findings have important implications for industrial marketing scholars and practitioners.     

Broadening the scope of the resource-based view in marketing: The contingency role of institutional factors

Drawing on the resource-based view (RBV) of the firm and institutional theory, the authors propose and test an integrated model in an industrial marketing context that expands the boundaries of the RBV to incorporate institutional factors pertaining to societal and political issues. The rationale for taking such an integrated approach stems from the knowledge that firm performance can be explained better by incorporating not only the inability of managers to take particular actions but also their reluctance or unwillingness to pursue those behaviors. The authors develop an integrated model that tests (1) the direct effect of marketing institutional factors on the development of marketing RBV factors and (2) the moderating role of marketing institutional factors on the performance effect of marketing RBV factors. The empirical results indicate general support for the hypotheses, and this research provides several implications for broadening the scope of the RBV in marketing by underscoring how fit between marketing resources and the context in which those resources are deployed affects firm performance.     

The impact of cultural differences in U.S. business-to-business export marketing channel strategic alliances

Given slower growth and fierce competition in the domestic market, combined with increasing opportunities in many overseas markets, more and more U.S. companies are going international. While many doing so may initially use a direct exporting approach that relies on foreign channel members to distribute the product in the host country, over time, strategic alliances among distribution partners may form based on trust, commitment, and cooperation. For these alliances to succeed, the partners' perceptions of these variables need to be congruent so that expectations on each side of the dyad are reasonably similar. However, what happens when the cultural backgrounds of each channel partner are substantially different? This study empirically examines whether cultural differences do affect trust, commitment, and cooperation in international marketing channel alliances between U.S. exporters and their foreign distribution partners. Based on the survey responses from 149 U.S. exporters with marketing alliances abroad, cultural differences do affect trust, commitment, and cooperation. The greater the cultural differences between channel partners, the lower the levels of trust, commitment, and cooperation. Managerial implications are discussed, and study limitations are identified.     

The cornerstones of competitive advantage: A resource-based view

This paper elucidates the underlying economics of the resource-based view of competitive advantage and integrates existing perspectives into a parsimonious model of resources and firm performance. The essence of this model is that four conditions underlie sustained competitive advantage, all of which must be met. These include superior resources (heterogeneity within an industry), ex post limits to competition, imperfect resource mobility, and ex ante limits to competition. In the concluding section, applications of the model for both single business strategy and corporate strategy are discussed.     

The impact of information technology on supply chain capabilities and firm performance: A resource-based view

Organizations increasingly rely on information technology (IT) to improve the supply chain process. Yet, past evidence suggests that the investment in IT per se does not guarantee enhanced organizational performance. Drawing from the resource-based view, this study proposes that IT-enabled supply chain capabilities are firm-specific, and hard-to-copy across organizations. These capabilities can serve as a catalyst in transforming IT-related resources into higher value for a firm. Based on data collected from surveying supply chain and logistics managers in various industries, the present study sheds light on these issues. The findings provide a new perspective in evaluating IT investment in the supply chain process.     

Resources and capabilities driving competitive advantage in export markets: guidelines for industrial exporters

In the context of the quest for the factors that determine competitive advantage, this study adopts a resource-based view and applies it to industrial goods' manufacturers engaged in exporting activities. The notion of organizational process is used as a filtering mechanism for the development of a classificatory scheme for firms' sources of competitive advantage in export markets. Different combinations of export-related resources and capabilities are identified as drivers of cost, service, and product advantage. Nonetheless, the capability to build enduring relationships with customers emerges as essential in achieving all three types of export competitive advantage. The findings of this inquiry have important implications for business practitioners in export manufacturing firms of industrial products. Limitations of the study are considered, and future research directions are identified.     

Acquisition of organizational capabilities and competitive advantage of IJVs in transition economies: The case of Vietnam

Using Vietnam as the context, the study empirically examines how the competitive advantage of international joint ventures (IJVs) in transition economies is affected by the acquisition of resources from foreign partners and of local market-based resources. Our study contributes to the nascent literature on IJVs in transition economies by producing several novel and interesting findings. First, it demonstrates the need to modify certain arguments of the resource-based view (RBV) when applied to IJVs in transition economies. This paper shows that the peculiar market characteristics of transition economies serve as an imitation barrier turning even property-based resources into sources of sustainable competitive advantage. Second, the positive impact of knowledge-based resources on the IJV’s competitiveness seems to be significantly enhanced as the ownership by the foreign parent increases. Lastly, competitive advantage of IJVs appears to be strengthened when the transfer of property-based resources is complemented by that of knowledge-based resources, and when the transfer of internal, firm-specific resources is complemented by that of external, market-based ones. We believe that these findings make significant, incremental theoretical and empirical contributions to both the RBV and IJV literatures.

A conceptualization of an organizational learning culture in international joint ventures

This paper focuses on organizational learning and innovation in international joint ventures (IJVs). Organizational learning addresses how organizations adapt to their environments, develop new knowledge, and then achieve competitive advantage. The authors present a conceptual framework that depicts the relationship between the parent organization(s)' climate, IJVs' organizational learning culture, innovativeness culture, innovation capacity, and IJV performance. Broadly, the IJV achieves superior performance by higher levels of innovativeness (openness to new ideas) and innovation capacity (capacity to implement innovations), which are associated with its organizational learning culture.     

A model to investigate the influence of marketing-mix efforts and corporate image on brand equity in the IT software sector

A model is developed to examine the relationships among marketing-mix efforts (channel performance, value-oriented price, promotion, and after-sales service), corporate image, three dimensions of brand equity (brand awareness with associations, perceived quality, and brand loyalty), and market performance. The model considers three distinctive aspects of business markets. After-sales service is taken as a key marketing-mix effort. Corporate image is placed as a mediator from the marketing-mix efforts to the dimensions of brand equity. Personal selling is defined as a main component of promotion. The model is tested in the context of a Korean IT software sector. The test results show that all the marketing-mix efforts positively affect the overall value of brand equity, which is a proxy of market performance, via the three dimensions of brand equity. Corporate image mediates the effect of the marketing-mix efforts on the three dimensions of brand equity.     

Innovation search of new ventures in a technology cluster: the role of ties with service intermediaries

In this study, we examine the relationships between new ventures' ties with service intermediaries (i.e., technology service firms, accounting and financial service firms, law firms, and talent search firms) and their product innovation in the context of a technology cluster. Because service intermediaries sit at the intersection of many firms, organizations and industries, they maintain extensive networks in a cluster. We propose that new ventures' ties with service intermediaries enable the ventures to plug into these networks and contribute to the ventures' product innovation by broadening the scope of their external innovation search and reducing their search cost. Moreover, we argue that the positive relationships between new ventures' ties with service intermediaries and their product innovation will become stronger when search in the networks in the cluster is more important to the ventures' product innovation. Based upon a sample of new ventures in a technology cluster in China, our results support these arguments. Copyright © 2009 John Wiley & Sons, Ltd.     

The impact of marketing capability, operations capability and diversification strategy on performance: A resource-based view

Using resource-based view (RBV) of the firm as a theoretical backdrop; we aim to find out the relative impact of a firm's functional capabilities (namely, marketing and operations) and diversification strategies (product/service and international diversification) on financial performance. We hypothesize that this linkage depends on the firm's relative efficiency to integrate its resource-capabilities-performance triad. Using archival data of 102 UK based logistics companies, we find marketing capability is the key determinant for superior financial performance. This study highlights that a market-driven firm is likely to have better business performance than a firm focusing solely on operational capabilities. Also, firms are better off when they focus on a narrow portfolio of products/services for the clients and concentrate on a diverse geographical market. Our findings provide a new perspective to model a firm's functional capabilities and diversification strategy on its financial performance and offer a benchmarking tool to improve resource allocation decisions.     

A resource-based approach to the multibusiness firm: Empirical analysis of portfolio interrelationships and corporate financial performance

The resource-based view of the firm has provided important new insights into corporate strategy (Barney, 1991; Peteraf, 1993); however, there has been only limited empirical research linked to the theory (e.g., Farjoun, 1994). Although a great deal of work has been done on Corporate diversification, the measures and data typically have a weak connection to resource-based theory. Empirical research on resource-based corporate strategy has been particularly dificult because key concepts such as tacit knowledge or capabilities resist direct measurement. This study is an effort to narrow the gap between theory and empirical research on the multibusiness firm. It develops a resource-based approach to modeling interrelationships among businesses and applies it to the analysis of corporate economic performance. This approach proves to be significant in explaining the financial performance of large manufacturing firms, and it promises to be an important source of insight into corporate strategy.     

A longitudinal study of customers' desired value change in business-to-business markets

Customer value is a dynamic interactive phenomenon. Based on a longitudinal, phenomenological study of buyers and sellers in the New Zealand wine industry, we shed light on the phenomena of customers' desired value change (CDVC), driving contextual conditions, and firms' strategic response. A four-stage model of market-CDVC evolution is proposed. Findings identified external and internal drivers of CDVC, such as increasing niche density, changing customer demands, changing competitor actions, and increased competitive rivalry. We were able to track changes in each driver, and identify the related changes in CDVC, including changes in CDVC form and intensity, and the scope of CDVC related actions.     

Entrepreneurial orientation, exploitative and explorative capabilities, and performance outcomes in export markets: A resource-based approach

Innovation is critical to the growth and success of a firm. In an attempt to renew themselves and compete effectively in the global marketplace, firms must possess both technical and non-technical capabilities. Yet, the extant literature has mainly focused on technology and product development capabilities, disregarding other possible capability domains. This study investigates the role of market-related exploitative and explorative capabilities, together with product development ones, in the context of exporting. Drawing on the resource-based and organization learning theories, we examine the internal process through which entrepreneurial orientation influences performance in export markets and develop a model of entrepreneurial orientation-exploitative and explorative capabilities-advantage-performance relationships. The results indicate that entrepreneurial orientation is a precursor of exploitative and explorative product development and overseas market-related capabilities. The findings also suggest that product development explorative capabilities and overseas market-related exploitative capabilities have a positive effect on new product differentiation, which in turn enhances market effectiveness. Implications for scholars and practitioners are discussed along with suggestions for future research.     

The role of fairness in alliance formation

We report on data from a revelatory qualitative case study of a failed attempt to form an international joint venture (IJV) agreement. We analyze issues related to distributive, procedural, interpersonal, and informational fairness and the roles of their occurrence in the course of the formation stage of an IJV. We find that perceptions of fairness types shape the partners' decision making logics (a property rights logic, a control rights logic, and a relational quality logic), which in turn influence the partners' evaluations of efficiency and equity of the proposed alliance and their decision on whether or not to form it. We develop propositions around this argument. Copyright © 2010 John Wiley & Sons, Ltd.     

Factors facilitating and impeding the development of export market-oriented behavior: A study of Hong Kong manufacturing exporters

We test a model of the antecedents to market-oriented behavior in firms' export operations (i.e., export market-oriented [EMO] behavior). Using data from Hong Kong-based industrial manufacturing exporters, we explain 73% of the variance in EMO activity. Our findings confirm the importance of variables such as export coordination, export experience, and the export environment in determining EMO behavior levels. However, several hypotheses are refuted, contradicting previous research findings. For instance, in our sample, centralized decision-making generally is positively related to EMO activity—particularly under conditions of high environmental turbulence: this contradicts findings of studies in Western exporting businesses where centralization generally inhibits EMO behavior. Furthermore, unlike their Western counterparts, market-based reward and training systems and managers' export commitment and emphasis on market orientation do not predict EMO behavior. We suggest that these unexpected findings may be due to differences in culture between Asian and Western businesses.     

Technological capabilities and firm performance: The case of small manufacturing firms in Japan

The purpose of this study is to investigate the relationship between technological capabilities and firm performance. We divide technological capabilities into two types—refinement capability, which involves the improvement of the existing asset portfolio, and reconfiguration capability, which involves the restructuring of the asset portfolio through the integration of new assets. The results of an analysis of a sample of 302 small and medium-sized manufacturing firms in Japan suggest that refinement capability relates more positively to operational efficiency than does reconfiguration capability, and that reconfiguration capability relates more positively to strategic performance than does refinement capability. The results also suggest that firms with superior refinement capability tend to possess superior reconfiguration capability. Our findings show that both external and internal factors, such as technological volatility, inter-firm collaboration, and firm age and size, are significantly associated with the level of refinement and reconfiguration capabilities possessed by a firm.

Exploring the role of relationship pricing in industrial export settings: Empirical evidence from the UK

This paper sets out to shed initial empirical light on the role of relationship pricing in an industrial export context, by a) investigating the extent to which selected contextual variables shape the adoption of relationship pricing, and b) examining manifestations of relationship pricing in the process that industrial exporters use for levying their prices. Analyzing data from a stratified random sample of 243 UK exporters of industrial products, the results demonstrate that the adoption of relationship pricing is a) facilitated by the degree of an exporter's market orientation, export experience, and the level of formality in export price setting and b) hindered by firm age and export intensity. It is also shown that industrial exporting firms adopting relationship pricing tend to follow a more market-based export price decision-making process, as this is manifested in market-based export pricing information, objectives and policies. The practical implications of the findings are discussed and useful future research directions are highlighted.