This paper develops a theoretical framework that locates the foundations of sustained competitive advantage in the heterogeneous distribution of firm resources. We argue that resource heterogeneity is a necessary condition for competitive advantage and that the persistence of advantage requires resources that are valuable, rare, imperfectly imitable, and non-substitutable. Drawing on the strategic factor markets literature, we propose that the inimitability of strategic resources is a function of three isolating mechanisms: causal ambiguity, path dependence, and social complexity. The paper offers a typology of resource categories and discusses the boundary conditions under which the framework applies. Implications for empirical research on firm performance heterogeneity are discussed, and we identify open questions concerning the microfoundations of resource accumulation.
Using a panel of 312 publicly traded U.S. manufacturing firms over the period 1989-1998, this study examines the effect of intangible resources on firm performance. We measure intangible resources through three indicators: brand value, organizational reputation, and human capital intensity. The results indicate that intangible resources have a positive and significant effect on return on assets, with the effect attenuated for firms operating in highly competitive industries. Causal ambiguity moderates the relationship between intangible resources and firm performance such that the performance premium associated with intangibles is greatest when causal ambiguity is high. We also find that organizational reputation mediates the relationship between human capital intensity and firm performance. The findings support the resource-based prediction that intangible resources generate sustained competitive advantage and identify causal ambiguity as a key isolating mechanism.
This paper extends the resource-based view by developing the construct of dynamic capabilities, which we define as the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. We argue that in volatile markets sustained competitive advantage requires not only valuable resources but also the dynamic capabilities to renew those resources over time. Three components of dynamic capabilities are identified: sensing opportunities, seizing opportunities through resource commitment, and reconfiguring the resource base. The paper proposes that environmental volatility moderates the effect of dynamic capabilities on firm performance, with stronger effects observed in high-velocity industries. The conceptual framework is illustrated with examples from the semiconductor and pharmaceutical industries. Implications for strategy research and managerial practice are discussed.
We synthesize 87 empirical studies (combined N = 23,418 firms) to estimate the relationship between absorptive capacity and innovation performance. The meta-analytic results show a positive and significant overall effect (mean r = .34, 95% CI [.30, .38]). Moderator analyses indicate that the effect is stronger for radical innovation outcomes than for incremental innovation outcomes, and stronger in high-technology industries than in low-technology industries. We further find that R&D intensity mediates a substantial portion of the absorptive capacity-innovation relationship, suggesting that absorptive capacity influences innovation in part through its effect on the firm's research and development investment. The findings reconcile previously contradictory empirical results by demonstrating that absorptive capacity is the principal antecedent of innovation performance under conditions of high environmental knowledge complexity. Implications for the dynamic capabilities literature and for the measurement of absorptive capacity in future empirical work are discussed.
This study examines how relational capital and alliance capability jointly influence the performance of strategic alliances. Using survey data from 247 alliance dyads in the biotechnology industry, we test a mediation model in which alliance capability is the antecedent of relational capital, and relational capital is the proximal driver of alliance performance. The results support the proposed mediation: relational capital fully mediates the effect of alliance capability on alliance performance. Trust between partners moderates the relationship between relational capital and alliance performance such that the effect is amplified when trust is high. We also find that prior alliance experience is a key antecedent of alliance capability. The findings extend the resource-based view to the domain of inter-organizational relationships and identify two specific firm-level capabilities through which strategic alliances generate value.
We examine the role of IT capabilities as antecedents of organizational learning and the indirect effect of IT capabilities on firm performance. Using a sample of 189 large firms across multiple industries, we operationalize IT capabilities along three dimensions: IT infrastructure, IT human resources, and IT-enabled intangibles. The results show that IT-enabled intangibles are a strong driver of organizational learning, whereas IT infrastructure has only a weak direct effect. Organizational learning mediates the effect of IT capabilities on firm performance. Industry environmental dynamism moderates the IT capabilities-organizational learning relationship: the effect of IT capabilities on learning is significantly stronger in dynamic environments. The findings refine the dynamic capabilities perspective by identifying which IT capability components most strongly drive organizational adaptation and by clarifying the conditions under which IT investments translate into superior performance.
This paper examines how R&D intensity and absorptive capacity jointly determine the propensity of firms to introduce radical innovations. Using panel data from 1,452 European manufacturing firms over 2008-2015, we test a moderated-mediation model. The results indicate that R&D intensity is positively associated with radical innovation output. Absorptive capacity mediates a substantial portion of this effect, with the indirect effect through absorptive capacity accounting for approximately 38% of the total. The mediating role of absorptive capacity is stronger for firms operating in science-based sectors than for firms in supplier-dominated sectors. We further find that external knowledge sourcing intensity moderates the relationship between absorptive capacity and radical innovation: the positive effect of absorptive capacity on radical innovation is amplified when external knowledge sourcing is high. The findings carry implications for innovation policy targeted at strengthening firms' absorptive capacity.
We develop and test a microfoundational account of dynamic capabilities in which managerial cognitive diversity is the key antecedent of sensing, seizing, and reconfiguring capabilities. Drawing on the upper-echelons literature and recent work on the microfoundations of strategy, we argue that top management team cognitive diversity is a necessary precursor of dynamic capabilities under conditions of environmental complexity. We test the model using survey and archival data from 274 firms across 18 industries. The results support the proposed framework: managerial cognitive diversity is positively associated with dynamic capabilities, dynamic capabilities mediate the effect of cognitive diversity on strategic renewal outcomes, and environmental complexity moderates the relationship between cognitive diversity and dynamic capabilities. The findings advance the microfoundations program by identifying a specific upper-echelon attribute that drives the development of dynamic capabilities at the firm level.
This paper develops the construct of resource orchestration, the managerial process of structuring, bundling, and leveraging firm resources to create competitive advantage, and tests its effect on firm performance. We use fuzzy-set qualitative comparative analysis (fsQCA) on data from 91 mid-sized manufacturing firms to identify configurations of resource orchestration practices associated with superior performance. The results identify three viable configurations, suggesting that no single orchestration pathway is necessary or sufficient. Across all three configurations, resource leveraging emerges as a key driver of competitive advantage. Resource bundling is a necessary condition in two of the three configurations. The findings extend the resource-based view by demonstrating that the relationship between resources and performance is shaped not only by resource attributes but also by the managerial practices through which resources are deployed.
We examine the construct of causal ambiguity as an isolating mechanism in the resource-based view. Distinguishing between linkage ambiguity (uncertainty about which resources contribute to performance) and characteristic ambiguity (uncertainty about how a resource generates value), we argue that the two forms of ambiguity have different implications for the sustainability of competitive advantage. Linkage ambiguity is the principal barrier to imitation by rivals, whereas characteristic ambiguity is a precursor of internal coordination failures within the focal firm itself. We propose that the relationship between causal ambiguity and sustained competitive advantage is non-monotonic: low ambiguity invites imitation, moderate ambiguity sustains advantage, and high ambiguity erodes the firm's own ability to deploy its resources effectively. The theoretical framework reconciles long-standing tensions in the causal ambiguity literature and identifies novel propositions for empirical research.
Using survey data from 423 UK small and medium-sized enterprises, this study examines how three dimensions of intellectual capital, namely human capital, structural capital, and relational capital, influence innovation performance and subsequent firm growth. The results show that human capital has a positive effect on innovation performance, structural capital has a positive effect on innovation performance, and relational capital has a positive but smaller effect. Innovation performance fully mediates the effect of intellectual capital on firm growth. Firm age moderates the relationship between structural capital and innovation: structural capital is more important for older firms than for younger firms. The findings provide empirical support for the resource-based prediction that intellectual capital is a strategic resource and identify innovation performance as the proximate mechanism linking intellectual capital to growth.
This paper examines the effect of alliance portfolio diversity on firm innovation through the mechanism of knowledge recombination. Drawing on the knowledge-based view of the firm, we propose that diverse alliance portfolios provide firms with access to heterogeneous knowledge inputs, which then enable novel recombinations that drive innovation. We test the model using patent data from 524 firms in the semiconductor industry over the period 2002-2012. The results show that alliance portfolio diversity has a positive effect on firm innovation, measured as the count of new-to-the-firm patent classes. Knowledge recombination mediates this relationship. Absorptive capacity moderates the relationship between alliance portfolio diversity and knowledge recombination: the recombination effect is amplified when absorptive capacity is high. We discuss the implications for alliance management and for the integration of the knowledge-based view with the resource-based view.
We investigate the role of social capital as an antecedent of dynamic capabilities in emerging-market firms. Using survey data from 198 firms in Brazil and Turkey, we test a model in which firm-level social capital, operationalized along structural, relational, and cognitive dimensions, drives the development of sensing, seizing, and reconfiguring capabilities. The results show that all three dimensions of social capital are positively associated with dynamic capabilities, with the relational dimension exhibiting the strongest effect. Institutional voids in the firm's environment moderate the social capital-dynamic capabilities relationship: the effect of social capital is strongest when institutional voids are pronounced. Dynamic capabilities mediate the effect of social capital on firm performance. The findings extend the dynamic capabilities literature to the emerging-market context and identify social capital as a context-specific antecedent of capability development.
This paper presents a comparative case study of two large pharmaceutical firms over the period 1985-2007, examining how path-dependent processes shape the accumulation of technological capabilities. The case evidence indicates that early strategic decisions concerning therapeutic area focus established trajectories that constrained subsequent capability development for both firms. Path dependence in capability accumulation operated through three mechanisms: experiential learning effects, infrastructural commitments, and the cognitive frames of senior R&D managers. We find that path dependence produced both efficiencies and rigidities in the focal firms: efficiencies through deepening firm-specific expertise, rigidities through reduced responsiveness to scientific developments outside the established trajectory. The case findings inform a theoretical framework that treats path dependence not as a generic isolating mechanism but as a multidimensional construct with distinct positive and negative consequences for sustained competitive advantage.
Building on the natural-resource-based view, this study examines how environmental capabilities translate into sustainable competitive advantage in the presence of stakeholder pressures. Using a sample of 367 firms in carbon-intensive industries, we operationalize environmental capabilities along three dimensions: pollution prevention, product stewardship, and clean technology. The results indicate that all three environmental capabilities have positive effects on sustainable competitive advantage. Stakeholder pressure moderates these relationships: the effect of pollution prevention capability on sustainable competitive advantage is amplified under high stakeholder pressure, whereas the effect of clean technology capability is dampened. Stakeholder integration mediates the relationship between product stewardship capability and sustainable competitive advantage. We further find that regulatory stringency is a key antecedent of all three environmental capabilities. The findings refine the natural-resource-based view by specifying the conditions under which environmental capabilities yield competitive returns.
Drawing on the natural-resource-based view, this study examines the mechanisms through which managerial cognitive diversity influences firm performance. The argument draws on the dynamic capabilities literature and extends recent work on capability deployment. We use structural equation modelling on a sample of 89 European manufacturing firms. We also find that managerial cognitive diversity is a critical antecedent of firm performance under the boundary conditions identified. We find that operational capabilities partially mediate the effect of first-order capabilities on organisational adaptation. Environmental dynamism positively moderates the effect of transforming capability on sustainable competitive advantage. Operational capabilities mediate the effect of seizing capability on organisational adaptation. Operational capabilities serve as a mediator of the relationship between managerial cognitive diversity and firm performance. We address potential endogeneity concerns using an instrumental-variables approach. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The findings advance the dynamic capabilities programme by establishing the empirical relevance of managerial cognitive diversity.
Building on the microfoundations of strategy, we examine the extent to which clean technology capability influences stakeholder legitimacy. We integrate natural-resource-based view with insights from the behavioural theory of the firm. We employ a mixed-method design combining survey data (754 firms) with 2 in-depth case studies. Importantly, stakeholder integration carries the principal portion of the effect of clean technology capability on stakeholder legitimacy. The findings indicate that stakeholder legitimacy is the principal outcome of clean technology capability. Green innovation capability exhibits a positive effect on sustainability performance. The results are robust to alternative operationalisations of the dependent variable. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The contribution is both theoretical and empirical: theoretical in extending the natural-resource-based view, empirical in providing the first large-sample test of the proposed mechanisms. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Building on the microfoundations of strategy, we examine the extent to which stakeholder integration influences legitimacy. The argument draws on the stakeholder strategy literature and extends recent work on capability deployment. We apply fuzzy-set qualitative comparative analysis to data from 211 firms. Consistent with the hypotheses, stakeholder integration enhances legitimacy. Media attention moderates the relationship between stakeholder integration and legitimacy. The empirical analysis shows that board diversity is a key determinant of stakeholder relationships. Consistent with the hypotheses, ESG capabilities significantly enhance trust across the sample. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. Several boundary conditions are identified that constrain the generalisability of the findings. We identify open questions concerning the microfoundations of stakeholder integration and discuss avenues for future research. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Through a comparative case design, this paper examines whether network density influences knowledge access. The argument draws on the social capital literature and extends recent work on capability deployment. Through a comparative case study of 3 firms, we examine the proposed mechanisms. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. The findings reveal that relational social capital significantly enhances collaborative behaviour across the sample. Furthermore, network density significantly enhances knowledge access across the sample. The results identify the impact of network centrality on knowledge transfer both in isolation and in combination with other strategic resources. Furthermore, knowledge access is determined by network density. In addition, knowledge transfer mediates the effect of network centrality on firm performance. Contrary to expectations, network density is the proximal antecedent of knowledge access. Importantly, network embeddedness is positively associated with opportunity recognition. The case findings are triangulated across multiple data sources and respondent groups. The interpretation we offer is provisional and would benefit from replication using alternative samples. The empirical pattern is consistent with a contingency-theoretic interpretation of network density but is harder to reconcile with strong universalistic accounts. The study contributes to the social capital literature in three ways. The findings refine the resource-based view by specifying the mechanisms through which network density generate sustained competitive advantage. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Using a multi-industry sample, this study examines the mechanisms through which scientific collaboration influences patent productivity. The hypotheses are tested using two-stage least squares on data from 754 firms. Furthermore, scientific collaboration has a positive and significant effect on patent productivity. Knowledge complexity attenuates the effect of knowledge acquisition on incremental innovation. We discuss the implications of the findings for practice and identify three managerial recommendations.
We analyse the role of seizing capability influences firm performance. We position the argument within the broader dynamic capabilities literature and identify three competing accounts of the focal mechanism. We test the conceptual model using an experimental design with 1024 participants drawn from small and medium-sized enterprises. The findings indicate that seizing capability is a precursor of firm performance. We further find that strategic flexibility mediates the effect of first-order capabilities on sustainable competitive advantage. Consistent with the hypotheses, managerial cognitive diversity is a critical antecedent of strategic flexibility under the boundary conditions identified. Moreover, asset orchestration reduces sustained competitive advantage. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The findings have implications for the strategic-management literature on seizing capability and for managers seeking to deploy these resources effectively.
We develop a theoretical framework that addresses the conditions under which structural capital influences firm value. The paper builds on the intellectual capital and engages with recent critiques concerning measurement and identification. We develop a theoretical framework and illustrate it through three vignettes drawn from energy firms. The sample spans 7 years and covers firms varying in size and ownership structure. We find that organisational capital significantly enhances innovation performance across the sample. Industry life-cycle stage moderates the effect of structural capital on firm value. Importantly, structural capital is the proximal antecedent of firm value. Furthermore, intellectual capital integration is an outcome of organisational capital. We further find that the analysis quantifies the contribution of structural capital to firm value across the full panel and within key sub-samples. Our results suggest that structural capital has a significant positive effect on firm value. We illustrate the framework with examples drawn from prior empirical work. The findings underscore the importance of context-sensitive operationalisation of structural capital in subsequent empirical work. Our results align with recent findings in the intellectual capital literature while extending them to a previously unexamined empirical setting. The paper makes two contributions to the intellectual capital literature. The findings advance the intellectual capital programme by establishing the empirical relevance of structural capital. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Using a longitudinal design, this paper investigates the extent to which absorptive capacity influences new product development. The conceptual model draws on the absorptive capacity and incorporates insights from organisation theory. We test the hypotheses using a longitudinal sample of 124 firms over 5 years. In addition, absorptive capacity is a key precursor of new product development. Knowledge tacitness acts as a contingency on the knowledge transformation-patent productivity relationship. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. Several boundary conditions are identified that constrain the generalisability of the findings. We discuss the boundary conditions of the findings and identify implications for future empirical work.
Building on the knowledge-based view of the firm, we examine the role of alliance portfolio size influences alliance performance. We synthesise 62 empirical studies using meta-analytic techniques. The findings reveal that network resources influence alliance performance. The results show that alliance portfolio size consistently shapes alliance performance across the sub-samples examined. We identify open questions concerning the microfoundations of alliance portfolio size and discuss avenues for future research.
We investigate the extent to which prior alliance experience influences firm performance. The theoretical framework reconciles the alliance capability with attention-based perspectives on strategic choice. We synthesise 62 empirical studies using meta-analytic techniques. The empirical analysis shows that governance form moderates the effect of relational capital on alliance success. Alliance management capability exhibits a positive effect on alliance performance. Prior alliance experience drives firm performance through a combination of direct and indirect mechanisms. Sensitivity analyses confirm the robustness of the pooled effect to study quality and sample composition. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The results extend prior alliance capability work by introducing a previously unexamined boundary condition.
Extending recent work on dynamic capabilities, this paper analyses the role of structural ambidexterity influences long-term survival. We synthesise the organisational ambidexterity literature with recent advances in the microfoundations programme. The conceptual framework is illustrated with examples from the professional services industry; no empirical test is conducted. Moreover, structural ambidexterity is a critical determinant of long-term survival. The results indicate that organisational learning mediates the relationship between exploration and long-term survival. The findings reveal that the results clarify the role of structural ambidexterity in shaping long-term survival. The results show that structural ambidexterity is significantly positively associated with long-term survival. Importantly, organisational ambidexterity shows a strong positive relationship with firm performance. The conceptual contribution is summarised in a typology of focal relationships. The pattern of effects suggests that the construct of structural ambidexterity is more multidimensional than prior work has acknowledged. The study contributes to the organisational ambidexterity literature in three ways.
Drawing on the dynamic capabilities perspective, this paper investigates how stakeholder pressure influences financial performance. We synthesise the natural-resource-based view literature with recent advances in the microfoundations programme. The hypotheses are tested using two-stage least squares on data from 1024 firms. Importantly, stakeholder pressure is a strong predictor of financial performance. We also find that pollution prevention capability is a critical antecedent of sustainability performance under the boundary conditions identified. The results show that regulatory stringency improves green absorptive capacity. The findings hold across alternative model specifications and sub-samples. The findings refine the resource-based view by specifying the mechanisms through which stakeholder expectations generate sustained competitive advantage.
Drawing on the resource-based view, this paper examines the conditions under which knowledge transfer mechanisms influences innovation outcomes. The conceptual framework integrates insights from knowledge-based view and contingency theory. We employ a moderated-mediation design on survey data from 1024 firms. In addition, knowledge resources weaken knowledge application. Moreover, knowledge transfer mechanisms show a positive relationship with innovation outcomes. Furthermore, appropriability regime moderates the effect of knowledge transfer mechanisms on innovation outcomes. The findings hold across alternative model specifications and sub-samples. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The study contributes to the knowledge-based view literature in three ways.
Drawing on the resource-based view, this paper examines the mechanisms through which IT capabilities influences digital transformation outcomes. The theoretical framework reconciles the IT capabilities with attention-based perspectives on strategic choice. We apply fuzzy-set qualitative comparative analysis to data from 524 firms. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. We find that IT infrastructure capability accelerates business process agility. Digital capabilities exhibit a robustly positive effect on innovation performance that survives a battery of robustness checks. Contrary to expectations, IT capabilities predict digital transformation outcomes. Consistent with our predictions, digital transformation outcomes are the principal outcomes of IT capabilities. The mediation analysis shows that business process agility carries the principal portion of the effect of IT business alignment on business process agility. Furthermore, the estimates capture the relationship between IT investment and firm performance. IT human resources capability influences process innovation. Consistent with the hypotheses, IT capabilities have a positive and economically meaningful effect on digital transformation outcomes across all specifications. We further test the model on a holdout sample and replicate the principal findings. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. These findings call into question the assumption that IT capabilities operates uniformly across organisational contexts. The contribution is both theoretical and empirical: theoretical in extending the IT capabilities, empirical in providing the first large-sample test of the proposed mechanisms. We discuss the boundary conditions of the findings and identify implications for future empirical work. Future studies could examine the conditions under which IT capabilities translates into rent appropriation as opposed to value creation.
Using a longitudinal design, this paper investigates whether exploration influences long-term survival. We synthesise the organisational ambidexterity literature with recent advances in the microfoundations programme. Drawing on patent data from 612 firms in the high-technology industry, we test the model. The results indicate that organisational ambidexterity increases long-term survival. Sequential ambidexterity facilitates innovation performance. Organisational design stimulates long-term survival. Exploration increases long-term survival. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency.
This paper examines whether managerial foresight influences rent appropriation. Drawing on panel data from 124 firms over the period 2010-2016, we test the hypotheses. The findings indicate that rare resources substantially improve sustainable competitive advantage under the conditions specified. Managerial foresight substantially improves rent appropriation under the conditions specified. Resource configuration mediates the effect of managerial foresight on rent appropriation. We identify open questions concerning the microfoundations of managerial foresight and discuss avenues for future research.
We investigate the role of seizing capability influences firm performance. Drawing on panel data from 612 firms over the period 2006-2020, we test the hypotheses. We also find that seizing capability enhances strategic flexibility. The contribution is both theoretical and empirical: theoretical in extending the dynamic capabilities, empirical in providing the first large-sample test of the proposed mechanisms.
We develop a theoretical framework that addresses the role of product stewardship capability influences stakeholder legitimacy. Drawing on the natural-resource-based view, we develop three hypotheses concerning the focal relationships. The conceptual framework is illustrated with examples from the chemical industry; no empirical test is conducted. The sample spans 15 years and covers firms varying in size and ownership structure. The findings indicate that product stewardship capability is a determinant of stakeholder legitimacy. We further find that product stewardship capability shows a strong positive relationship with stakeholder legitimacy. Consistent with our predictions, industry pollution intensity acts as a contingency on the sustainability capabilities-environmental performance relationship. The findings indicate that green absorptive capacity serves as a mediator of the relationship between product stewardship capability and stakeholder legitimacy. The product stewardship capability-stakeholder legitimacy relationship is moderated by industry pollution intensity. Stakeholder demands robustly drive stakeholder integration after controls for firm and industry characteristics. Industry pollution intensity positively moderates the effect of environmental management capability on environmental innovation. The conceptual contribution is summarised in a typology of focal relationships. Several boundary conditions are identified that constrain the generalisability of the findings. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. The paper closes with implications for the design of capability-development initiatives. Future studies could examine the conditions under which product stewardship capability translates into rent appropriation as opposed to value creation.
Through a multi-case study, we analyse whether clean technology capability influences sustainable competitive advantage. Through a comparative case study of 2 firms, we examine the proposed mechanisms. Furthermore, clean technology capability has a significant positive effect on stakeholder integration. Clean technology capability reduces sustainable competitive advantage when contextual conditions are unfavourable. Implications for the operationalisation of clean technology capability in subsequent empirical work are drawn out.
Drawing on a large-sample empirical design, we test the role of big data analytics capability influences agility. Using a multi-industry sample of 312 firms, we estimate a structural model. Consistent with our predictions, big data analytics capability is negatively associated with agility in the focal sample, contrary to standard predictions. Competitive intensity moderates the effect of data analytics capabilities on organisational learning. Competitive intensity acts as a contingency on the big data analytics capability-agility relationship. The contribution is both theoretical and empirical: theoretical in extending the IT capabilities, empirical in providing the first large-sample test of the proposed mechanisms.
Using a mixed-method design, we examine the extent to which digital strategy influences innovation performance. We synthesise the IT capabilities literature with recent advances in the microfoundations programme. We employ a mixed-method design combining survey data (124 firms) with 4 in-depth case studies. The empirical analysis shows that innovation performance is determined by digital strategy. We find that IT infrastructure capability is a determinant of firm performance. The findings document the influence of digital strategy on process innovation. The findings highlight the association between data analytics capabilities and business process agility. IT infrastructure capability stimulates innovation performance. The results are robust to alternative operationalisations of the dependent variable. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. We identify open questions concerning the microfoundations of digital strategy and discuss avenues for future research.
We analyse the role of top management team experience influences sustained competitive advantage. We employ a moderated-mediation design on survey data from 367 firms. Importantly, asset orchestration is the principal driver of strategic flexibility. Top management team experience is positively associated with sustained competitive advantage. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. The findings contribute to the dynamic capabilities debate by clarifying a contested empirical relationship.
Extending the resource-based view, we examine whether innovation capability influences new product success. The argument is grounded in the innovation strategy and complements recent process-based accounts of capability development. We synthesise 87 empirical studies using meta-analytic techniques. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. Contrary to expectations, R&D investment is a strong predictor of long-term competitiveness. Market uncertainty conditions the effect of innovation capability on new product success, with the relationship stronger under high market uncertainty. Innovativeness is a critical antecedent of absorptive capacity under the boundary conditions identified. Innovation capability reduces new product success when contextual conditions are unfavourable. The effect of innovation capability on innovation diffusion is amplified when market uncertainty is high and attenuated when market uncertainty is low. The empirical analysis shows that innovation diffusion is determined by R&D investment. Innovation culture is a key driver of new product success. Sensitivity analyses confirm the robustness of the pooled effect to study quality and sample composition. The findings underscore the importance of context-sensitive operationalisation of innovation capability in subsequent empirical work. The contribution to the innovation strategy literature lies in unpacking the construct of innovation capability into its component dimensions. We discuss the boundary conditions of the findings and identify implications for future empirical work. Subsequent research could usefully unpack the temporal dynamics through which innovation capability accumulates and erodes.
Adopting an inductive case-study approach, we explore the mechanisms through which domestic market experience influences international performance. Through a comparative case study of 6 firms, we examine the proposed mechanisms. The results show that domestic market experience is a key driver of international performance. Institutional environment significantly enhances domestic competitive advantage across the sample. The results show that absorptive capacity is driven by country-specific advantages. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs.
Building on the knowledge-based view of the firm, we examine whether country-specific advantages influences domestic competitive advantage. The conceptual model draws on the emerging-market strategy and incorporates insights from organisation theory. We test the hypotheses using a longitudinal sample of 312 firms over 7 years. The sample spans 15 years and covers firms varying in size and ownership structure. We find that absorptive capacity partially mediates the effect of country-specific advantages on domestic competitive advantage. The findings reveal that the empirical model captures the effect of country-specific advantages on domestic competitive advantage after accounting for plausible confounders. Political capabilities are precursors of absorptive capacity. Government linkages drive internationalisation success through a combination of direct and indirect mechanisms. Country-specific advantages promote domestic competitive advantage. Domestic market experience is an antecedent of absorptive capacity. We further test the model on a holdout sample and replicate the principal findings. The findings underscore the importance of context-sensitive operationalisation of country-specific advantages in subsequent empirical work. The study contributes to the emerging-market strategy literature in three ways. The paper closes with implications for the design of capability-development initiatives. Subsequent research could usefully unpack the temporal dynamics through which country-specific advantages accumulates and erodes.
Drawing on the natural-resource-based view, this study examines the conditions under which relational capital influences joint value creation. The paper builds on the alliance capability and engages with recent critiques concerning measurement and identification. We employ a moderated-mediation design on survey data from 367 firms. Consistent with our predictions, dedicated alliance function increases coordination capability. The results clarify the role of relational capital in shaping joint value creation. Network resources are negatively associated with firm innovation. Relational capital exhibits a positive effect on joint value creation. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The pattern of effects suggests that the construct of relational capital is more multidimensional than prior work has acknowledged. The paper makes two contributions to the alliance capability literature. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Drawing on a large-sample empirical design, we test the role of knowledge management practices influences knowledge stock growth. The theoretical framework reconciles the organisational learning with attention-based perspectives on strategic choice. The model is tested using a sample of 423 family-owned firms. Furthermore, knowledge management practices increase knowledge stock growth. Knowledge management practices are the proximal antecedents of knowledge stock growth. Absorptive capacity mediates the effect of knowledge management practices on knowledge stock growth. Additional analyses using propensity score matching corroborate the main findings. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The contribution is both theoretical and empirical: theoretical in extending the organisational learning, empirical in providing the first large-sample test of the proposed mechanisms.
Through an experimental design, we examine the mechanisms through which open innovation influences market share growth. We test the conceptual model using an experimental design with 211 participants drawn from Indian software firms. Furthermore, absorptive capacity partially mediates the effect of open innovation on market share growth. Consistent with the hypotheses, open innovation shows a strong positive relationship with market share growth. We discuss the boundary conditions of the findings and identify implications for future empirical work.
Using a multi-industry sample, this study examines whether learning routines influences knowledge stock growth. We position the argument within the broader organisational learning literature and identify three competing accounts of the focal mechanism. Drawing on patent data from 423 firms in the software industry, we test the model. In addition, knowledge stock growth is determined by learning routines. The findings document the influence of double-loop learning on absorptive capacity. Furthermore, experiential learning influences knowledge transfer. Double-loop learning is the principal driver of knowledge transfer across the firms in our sample. The results are robust to alternative operationalisations of the dependent variable. The study contributes to the organisational learning literature in three ways.
This study investigates the role of relational capital influences joint value creation. We integrate alliance capability with insights from the behavioural theory of the firm. We employ a moderated-mediation design on survey data from 247 firms. Moreover, alliance management capability is a key predictor of alliance success. We also find that relational capital shows a strong positive relationship with joint value creation. Alliance management capability has a strong positive effect on coordination capability. Contrary to expectations, prior alliance experience shows a strong positive relationship with knowledge transfer. Additional analyses confirm that the findings do not depend on the chosen estimator. These findings call into question the assumption that relational capital operates uniformly across organisational contexts. The contribution to the alliance capability literature lies in unpacking the construct of relational capital into its component dimensions.
Using a multi-industry sample, this study examines the conditions under which external knowledge sourcing influences incremental innovation. The argument draws on the absorptive capacity literature and extends recent work on capability deployment. Using a multi-industry sample of 247 firms, we estimate a structural model. Consistent with the hypotheses, the indirect effect of external knowledge sourcing on incremental innovation runs through knowledge integration. External knowledge sourcing is a key antecedent of incremental innovation. External knowledge sourcing accelerates incremental innovation. Additional analyses confirm that the findings do not depend on the chosen estimator. The findings contribute to the absorptive capacity debate by clarifying a contested empirical relationship.
Drawing on the dynamic capabilities perspective, this paper investigates whether potential absorptive capacity influences radical innovation. The conceptual framework integrates insights from absorptive capacity and contingency theory. We employ a mixed-method design combining survey data (1452 firms) with 6 in-depth case studies. Furthermore, knowledge exploitation has a negative effect on organisational learning. Potential absorptive capacity exhibits a positive effect on patent productivity. The findings reveal that potential absorptive capacity consistently shapes radical innovation across the sub-samples examined. Additional analyses confirm that the findings do not depend on the chosen estimator. The findings underscore the importance of context-sensitive operationalisation of potential absorptive capacity in subsequent empirical work. The contribution to the absorptive capacity literature lies in unpacking the construct of potential absorptive capacity into its component dimensions.
We synthesise the empirical literature on whether knowledge exploitation influences exploitative innovation. We synthesise the absorptive capacity literature with recent advances in the microfoundations programme. A meta-analysis of 87 empirical studies (combined N = 23418 firms) is conducted. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. Our results suggest that the effect of knowledge exploitation on exploitative innovation is contingent on knowledge complexity. Knowledge exploitation is the principal driver of exploitative innovation. Knowledge exploitation exhibits a robustly positive effect on exploitative innovation that survives a battery of robustness checks. Knowledge exploitation improves exploitative innovation. Knowledge complexity attenuates the effect of potential absorptive capacity on knowledge recombination. Sensitivity analyses confirm the robustness of the pooled effect to study quality and sample composition. The pattern of effects suggests that the construct of knowledge exploitation is more multidimensional than prior work has acknowledged. These findings call into question the assumption that knowledge exploitation operates uniformly across organisational contexts. The paper makes two contributions to the absorptive capacity literature. The findings have implications for the strategic-management literature on knowledge exploitation and for managers seeking to deploy these resources effectively. Subsequent research could usefully unpack the temporal dynamics through which knowledge exploitation accumulates and erodes.
Through a meta-analytic review, this paper examines the role of external knowledge sourcing influences innovation performance. We position the argument within the broader absorptive capacity literature and identify three competing accounts of the focal mechanism. We synthesise 104 empirical studies using meta-analytic techniques. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. We further find that innovation performance is an outcome of external knowledge sourcing. In addition, realised absorptive capacity reduces patent productivity. We find that knowledge acquisition significantly enhances patent productivity across the sample. External knowledge sourcing has a positive effect on innovation performance. The findings highlight the association between external knowledge sourcing and innovation performance. Sensitivity analyses confirm the robustness of the pooled effect to study quality and sample composition. The interpretation we offer is provisional and would benefit from replication using alternative samples. The findings underscore the importance of context-sensitive operationalisation of external knowledge sourcing in subsequent empirical work. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. The findings have implications for the strategic-management literature on external knowledge sourcing and for managers seeking to deploy these resources effectively. Subsequent research could usefully unpack the temporal dynamics through which external knowledge sourcing accumulates and erodes.
Drawing on a large-sample empirical design, we test the mechanisms through which process capital influences innovation performance. The theoretical framework reconciles the intellectual capital with attention-based perspectives on strategic choice. Using survey data from 247 firms in the financial services sector, we test the proposed model. We also find that process capital has a strong positive effect on firm value. The results identify the impact of organisational design on knowledge management both in isolation and in combination with other strategic resources. Innovation performance is influenced by process capital. Moreover, human resource practices are the principal antecedents of profitability. The findings hold across alternative model specifications and sub-samples. Our results align with recent findings in the intellectual capital literature while extending them to a previously unexamined empirical setting. We identify open questions concerning the microfoundations of process capital and discuss avenues for future research.
We synthesise the empirical literature on the role of firm innovation influences long-term competitiveness. We position the argument within the broader innovation strategy literature and identify three competing accounts of the focal mechanism. We synthesise 62 empirical studies using meta-analytic techniques. All measurement scales are pretested with a panel of subject-matter experts prior to administration. Consistent with our predictions, market uncertainty acts as a contingency on the firm innovation-absorptive capacity relationship. Bootstrap mediation analysis confirms that innovation diffusion mediates the technological diversity-market share growth relationship. Firm innovation has a strong positive effect on long-term competitiveness. Market uncertainty moderates the effect of firm innovation on long-term competitiveness. Process innovation increases market share growth. Innovation diffusion serves as a mediator of the relationship between firm innovation and long-term competitiveness. The findings highlight the association between firm innovation and long-term competitiveness. Heterogeneity across studies is assessed using Q and I-squared statistics. These findings call into question the assumption that firm innovation operates uniformly across organisational contexts. The contribution to the innovation strategy literature lies in unpacking the construct of firm innovation into its component dimensions. The findings advance the innovation strategy programme by establishing the empirical relevance of firm innovation. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Extending recent work on dynamic capabilities, this paper analyses the mechanisms through which organisational learning influences innovation performance. The argument draws on the organisational learning literature and extends recent work on capability deployment. A meta-analysis of 47 empirical studies (combined N = 31055 firms) is conducted. We further find that organizational learning has a significant negative effect on innovation output. The estimates capture the relationship between exploitative learning and knowledge transfer. The empirical analysis shows that learning orientation is a key determinant of knowledge stock growth. Consistent with our predictions, organisational adaptation is reduced by knowledge management practices. The analysis quantifies the contribution of learning routines to innovation performance across the full panel and within key sub-samples. Sub-group analyses identify systematic moderators of the focal relationship. These findings call into question the assumption that organisational learning operates uniformly across organisational contexts. The study contributes to the organisational learning literature in three ways.
Using a mixed-method design, we examine how organisational capital influences profitability. The theoretical framework reconciles the intellectual capital with attention-based perspectives on strategic choice. We employ a mixed-method design combining survey data (612 firms) with 3 in-depth case studies. All measurement scales are pretested with a panel of subject-matter experts prior to administration. We further find that firm growth is driven by process capital. Human resource practices are antecedents of intellectual capital integration. Firm age moderates the relationship between organisational capital and firm value. The model identifies the impact of social capital on knowledge management. Training investment weakens firm growth. The results clarify the role of organisational capital in shaping profitability. Contrary to expectations, organisational capital has a significant positive effect on firm growth. The results indicate that knowledge management mediates the relationship between organisational capital and profitability. We further test the model on a holdout sample and replicate the principal findings. Several boundary conditions are identified that constrain the generalisability of the findings. The results extend prior intellectual capital work by introducing a previously unexamined boundary condition. The findings advance the intellectual capital programme by establishing the empirical relevance of organisational capital. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Anchored in the dynamic capabilities literature, we test whether human capital influences firm growth. We integrate intellectual capital with insights from the behavioural theory of the firm. We test the model using survey data from 156 Italian SMEs. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. The empirical analysis shows that training investment is a predictor of innovation performance. Moreover, structural capital is a key antecedent of innovation performance. Firm size acts as a contingency on the human capital-firm growth relationship. Our results suggest that human capital consistently shapes firm growth across the sub-samples examined. Knowledge management partially mediates the effect of customer capital on innovation performance. Contrary to expectations, intellectual capital integration is shaped by intellectual capital through a combination of resource-allocation and learning mechanisms. Social capital shows a positive relationship with firm growth. Moreover, customer capital has a significant positive effect on profitability. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. The empirical pattern is consistent with a contingency-theoretic interpretation of human capital but is harder to reconcile with strong universalistic accounts. The study contributes to the intellectual capital literature in three ways. The findings advance the intellectual capital programme by establishing the empirical relevance of human capital. Subsequent research could usefully unpack the temporal dynamics through which human capital accumulates and erodes.
Extending recent work on dynamic capabilities, this paper analyses the conditions under which learning routines influences firm performance. A meta-analysis of 78 empirical studies (combined N = 47109 firms) is conducted. We further find that knowledge transfer mediates the relationship between learning routines and firm performance. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs.
We test the extent to which regulatory intensity influences sustainability performance. We use structural equation modelling on a sample of 524 Italian SMEs. Contrary to expectations, regulatory stringency is a key antecedent of sustainability performance in the empirical setting examined. Green innovation capability has a positive effect on environmental innovation. The findings refine the resource-based view by specifying the mechanisms through which regulatory stringency generate sustained competitive advantage.
Using a multi-industry sample, this study examines the extent to which incremental innovation influences market share growth. Drawing on the innovation strategy, we develop three hypotheses concerning the focal relationships. The model is tested using a sample of 189 European manufacturing firms. All measurement scales are pretested with a panel of subject-matter experts prior to administration. Consistent with the hypotheses, incremental innovation is an antecedent of market share growth. Process innovation is a strong predictor of innovation diffusion. Knowledge recombination substantially mediates the relationship between incremental innovation and market share growth, accounting for a meaningful share of the total effect. Technological diversity is the principal driver of innovation diffusion across the firms in our sample. Long-term competitiveness is predicted by technological diversity. We further find that technological turbulence moderates the relationship between product innovation and long-term competitiveness. Additional analyses using propensity score matching corroborate the main findings. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The contribution to the innovation strategy literature lies in unpacking the construct of incremental innovation into its component dimensions. Implications for strategy research and for managerial practice are discussed. Subsequent research could usefully unpack the temporal dynamics through which incremental innovation accumulates and erodes.
We synthesise the empirical literature on how clean technology capability influences sustainability performance. We synthesise 87 empirical studies using meta-analytic techniques. The results show that green absorptive capacity fully mediates the relationship between environmental management capability and environmental innovation. Green innovation capability diminishes sustainable competitive advantage. The findings refine the resource-based view by specifying the mechanisms through which clean technology capability generate sustained competitive advantage.
Extending the resource-based view, we examine the mechanisms through which political capabilities influences internationalisation success. The conceptual framework integrates insights from emerging-market strategy and contingency theory. Using archival and survey data from 189 firms across 14 industries, we test the model. In addition, the model identifies the impact of political capabilities on internationalisation success. International performance is shaped by institutional capabilities through a combination of resource-allocation and learning mechanisms. Political capabilities predict internationalisation success. We further test the model on a holdout sample and replicate the principal findings. Implications for the operationalisation of political capabilities in subsequent empirical work are drawn out.
Building on the resource-based view, this study investigates the conditions under which innovation outcomes influences market share growth. Drawing on the innovation strategy, we develop three hypotheses concerning the focal relationships. Drawing on panel data from 211 firms over the period 1995-2020, we test the hypotheses. Consistent with the hypotheses, innovation performance drives market share growth through a combination of direct and indirect mechanisms. Innovation diffusion mediates the effect of innovation performance on market share growth. Innovation outcomes are the proximal antecedents of market share growth. Importantly, the analysis isolates the link between innovation outputs and long-term competitiveness. Additional analyses using propensity score matching corroborate the main findings. The empirical pattern is consistent with a contingency-theoretic interpretation of innovation performance but is harder to reconcile with strong universalistic accounts. The contribution to the innovation strategy literature lies in unpacking the construct of innovation performance into its component dimensions.
Building on the microfoundations of strategy, we examine whether big data analytics capability influences firm performance. We synthesise the IT capabilities literature with recent advances in the microfoundations programme. A meta-analysis of 104 empirical studies (combined N = 23418 firms) is conducted. Importantly, big data analytics capability is a precursor of firm-level performance. Consistent with the hypotheses, IT human resources capability influences agility. The results indicate that IT investment has a strong positive effect on agility. Importantly, IT capabilities influence process innovation. Contrary to expectations, big data analytics capability is positively associated with firm performance. Heterogeneity across studies is assessed using Q and I-squared statistics. The interpretation we offer is provisional and would benefit from replication using alternative samples. The results extend prior IT capabilities work by introducing a previously unexamined boundary condition. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Drawing on the dynamic capabilities perspective, this paper investigates the extent to which exploitative learning influences organisational adaptation. We synthesise the organisational learning literature with recent advances in the microfoundations programme. We test the conceptual model using an experimental design with 1024 participants drawn from Brazilian firms. Control variables include firm size, firm age, leverage, and industry fixed effects. Our results suggest that organisational adaptation is the principal outcome of exploitative learning. Learning orientation diminishes organisational adaptation. The results show that the effect of exploitative learning on organisational adaptation is mediated by knowledge integration. Exploitative learning has a strong positive effect on organisational adaptation. Double-loop learning improves organisational adaptation. The findings reveal that knowledge tacitness positively moderates the effect of exploratory learning on organisational adaptation. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. Our results align with recent findings in the organisational learning literature while extending them to a previously unexamined empirical setting. The pattern of effects suggests that the construct of exploitative learning is more multidimensional than prior work has acknowledged. The results extend prior organisational learning work by introducing a previously unexamined boundary condition. We discuss the implications of the findings for practice and identify three managerial recommendations. Subsequent research could usefully unpack the temporal dynamics through which exploitative learning accumulates and erodes.
Adopting an inductive case-study approach, we explore whether realised absorptive capacity influences patent productivity. We integrate absorptive capacity with insights from the behavioural theory of the firm. Using a multi-case design across 3 firms in the software sector, we examine the phenomenon. Our results suggest that scientific collaboration promotes knowledge recombination. Scientific collaboration exhibits a negative effect on patent productivity. Realised absorptive capacity substantially improves patent productivity under the conditions specified. In addition, knowledge transformation is a key precursor of exploratory innovation. Cross-case comparison confirms the generalisability of the principal mechanisms. Our results align with recent findings in the absorptive capacity literature while extending them to a previously unexamined empirical setting. The paper makes two contributions to the absorptive capacity literature.
Drawing on the dynamic capabilities perspective, this paper investigates the mechanisms through which clean technology capability influences sustainable competitive advantage. We position the argument within the broader natural-resource-based view literature and identify three competing accounts of the focal mechanism. We synthesise 78 empirical studies using meta-analytic techniques. The sample spans 7 years and covers firms varying in size and ownership structure. Consistent with the hypotheses, stakeholder integration fully mediates the relationship between stakeholder demands and stakeholder integration. Sustainable competitive advantage is predicted by clean technology capability. Product stewardship capability is negatively associated with stakeholder legitimacy. Clean technology capability emerges as a key determinant of sustainable competitive advantage in the configurational analysis. We further find that sustainability performance is enhanced by stakeholder pressure. Consistent with the hypotheses, clean technology capability has a positive and significant effect on sustainable competitive advantage. Stakeholder integration mediates the relationship between clean technology capability and sustainable competitive advantage. Publication bias is assessed using funnel-plot diagnostics and trim-and-fill methods. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. These findings call into question the assumption that clean technology capability operates uniformly across organisational contexts. The findings contribute to the natural-resource-based view debate by clarifying a contested empirical relationship. The findings refine the resource-based view by specifying the mechanisms through which clean technology capability generate sustained competitive advantage. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Adopting a configurational perspective, we examine the role of stakeholder capabilities influences competitive advantage. The argument draws on the stakeholder strategy literature and extends recent work on capability deployment. Drawing on patent data from 1024 firms in the pharmaceutical industry, we test the model. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. Contrary to expectations, strategic advantage is the principal outcome of stakeholder capabilities. Stakeholder trust is driven by corporate governance quality. The results indicate that the results identify the impact of stakeholder capabilities on competitive advantage both in isolation and in combination with other strategic resources. ESG capabilities emerges as a key determinant of stakeholder trust in the configurational analysis. Our results suggest that reputational capital mediates the stakeholder capabilities-competitive advantage relationship. We find that stakeholder activism moderates the relationship between stakeholder capabilities and competitive advantage. We find that reputational capital mediates the corporate governance quality-stakeholder relationships relationship. Additional analyses confirm that the findings do not depend on the chosen estimator. The findings underscore the importance of context-sensitive operationalisation of stakeholder capabilities in subsequent empirical work. Our results align with recent findings in the stakeholder strategy literature while extending them to a previously unexamined empirical setting. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. We discuss the implications of the findings for practice and identify three managerial recommendations. Subsequent research could usefully unpack the temporal dynamics through which stakeholder capabilities accumulates and erodes.
Drawing on the natural-resource-based view, this study examines the extent to which dedicated alliance function influences firm performance. The conceptual model draws on the alliance capability and incorporates insights from organisation theory. We develop a theoretical framework and illustrate it through three vignettes drawn from chemical firms. Consistent with our predictions, dedicated alliance function shapes firm performance. Alliance management capability is the proximal antecedent of alliance performance. Alliance learning has a positive effect on coordination capability. Three propositions are derived from the framework and offered for empirical test. Several boundary conditions are identified that constrain the generalisability of the findings. The paper makes two contributions to the alliance capability literature.
We analyse the conditions under which structural capital influences firm growth. Drawing on the intellectual capital, we develop three hypotheses concerning the focal relationships. The conceptual framework is illustrated with examples from the biotechnology industry; no empirical test is conducted. In addition, structural capital stimulates profitability. Structural capital has a significant negative effect on firm growth. Human resource practices exhibit a positive effect on firm value. We illustrate the framework with examples drawn from prior empirical work. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. Implications for strategy research and for managerial practice are discussed.
Drawing on a large-sample empirical design, we test the mechanisms through which organisational ambidexterity influences long-term survival. The model is tested using a sample of 423 high-technology startups. The results show that organisational ambidexterity is the principal antecedent of long-term survival. Dynamic capabilities are determined by contextual ambidexterity. Consistent with our predictions, organisational ambidexterity improves long-term survival. We discuss implications for theory development and for the strategic management of organisational ambidexterity.
Adopting a configurational perspective, we examine the role of first-order capabilities influences sustained competitive advantage. Drawing on the dynamic capabilities, we develop three hypotheses concerning the focal relationships. The conceptual framework is illustrated with examples from the professional services industry; no empirical test is conducted. The findings reveal that the analysis quantifies the contribution of first-order capabilities to sustained competitive advantage across the full panel and within key sub-samples. The results show that prior industry experience is a critical antecedent of organisational adaptation under the boundary conditions identified. Consistent with the hypotheses, first-order capabilities are precursors of sustained competitive advantage. We illustrate the framework with examples drawn from prior empirical work. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. Implications for the operationalisation of first-order capabilities in subsequent empirical work are drawn out.
Through a sequential mixed-method approach, this study investigates the extent to which sustainability capabilities influences sustainable competitive advantage. We employ a mixed-method design combining survey data (312 firms) with 4 in-depth case studies. We also find that sustainable competitive advantage is a consequence of sustainability capabilities. Environmental capabilities are necessary precursors of stakeholder legitimacy. The study contributes to the natural-resource-based view literature in three ways.
Extending the resource-based view, we examine how knowledge management practices influences knowledge stock growth. The theoretical framework reconciles the organisational learning with attention-based perspectives on strategic choice. Using a multi-industry sample of 612 firms, we estimate a structural model. Furthermore, knowledge management practices are significantly positively associated with knowledge stock growth after accounting for firm- and industry-level controls. We find that exploitative learning is a key precursor of absorptive capacity. Knowledge management practices influence knowledge stock growth. Knowledge integration mediates the effect of exploitative learning on knowledge stock growth. The pattern of results is stable across the sample period and across industry sub-samples. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency.
Building on the knowledge-based view of the firm, we examine the extent to which dynamic capabilities influences firm performance. We integrate dynamic capabilities with insights from the behavioural theory of the firm. We use structural equation modelling on a sample of 89 European manufacturing firms. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. We also find that strategic flexibility mediates the relationship between second-order capabilities and sustained competitive advantage. Our results suggest that the empirical analysis quantifies the effect of dynamic firm capabilities on firm performance. DCs exhibit a robustly positive effect on firm performance that survives a battery of robustness checks. Contrary to expectations, the empirical analysis quantifies the effect of asset orchestration on strategic renewal. Furthermore, reconfiguring capability has a positive and significant effect on strategic flexibility. Strategic flexibility fully mediates the relationship between managerial cognitive diversity and organisational adaptation. In addition, firm performance is driven by dynamic capabilities. The results show that strategic flexibility mediates the relationship between second-order capabilities and resource reconfiguration. The findings document the influence of prior industry experience on firm-level performance. The indirect effect of first-order capabilities on operational capabilities runs through strategic flexibility. The pattern of results is stable across the sample period and across industry sub-samples. Several boundary conditions are identified that constrain the generalisability of the findings. The study contributes to the dynamic capabilities literature in three ways. Implications for strategy research and for managerial practice are discussed. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Through an experimental design, we examine how top management team composition influences firm-level performance. We test the conceptual model using an experimental design with 612 participants drawn from international joint ventures. The empirical analysis shows that resource bundling increases firm performance. We find that firm performance is the principal outcome of top management team composition. Company performance is determined by top management team composition. Implications for strategy research and for managerial practice are discussed.
Building on the resource-based view, this study investigates the conditions under which strong ties influences innovation performance. The conceptual framework integrates insights from social capital and contingency theory. We develop a theoretical framework and illustrate it through three vignettes drawn from pharmaceutical firms. The findings indicate that the findings highlight the association between tenure with partners and opportunity recognition. Innovation performance is significantly enhanced by strong ties after controlling for confounding factors. Network centrality has a significant negative effect on opportunity recognition. In addition, collaborative behaviour partially mediates the effect of tenure with partners on trust. Strong ties enhance innovation performance. We illustrate the framework with examples drawn from prior empirical work. The pattern of effects suggests that the construct of strong ties is more multidimensional than prior work has acknowledged. We discuss the boundary conditions of the findings and identify implications for future empirical work. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Drawing on a large-sample empirical design, we test the role of human resource practices influences firm value. The hypotheses are tested using two-stage least squares on data from 1024 firms. In addition, industry life-cycle stage moderates the relationship between human resource practices and firm value. Human resource practices reduce firm value. The paper makes two contributions to the intellectual capital literature.
Anchored in the knowledge-based view, this paper investigates the conditions under which structural capital influences profitability. The conceptual framework integrates insights from intellectual capital and contingency theory. We develop a theoretical framework and illustrate it through three vignettes drawn from consulting firms. The results show that structural capital is a critical driver of intellectual capital integration. The results indicate that intellectual capital integration mediates the effect of structural capital on profitability. Structural capital is positively associated with intellectual capital integration. Structural capital has a negative effect on profitability. The conceptual contribution is summarised in a typology of focal relationships. Our results align with recent findings in the intellectual capital literature while extending them to a previously unexamined empirical setting. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
This study investigates the mechanisms through which innovation capability influences firm performance. We position the argument within the broader innovation strategy literature and identify three competing accounts of the focal mechanism. Drawing on patent data from 156 firms in the consulting industry, we test the model. Our results suggest that long-term competitiveness is a consequence of open innovation. Innovation performance emerges as a key determinant of knowledge recombination in the configurational analysis. Process innovation is the proximal antecedent of market share growth. Incremental innovation is a critical driver of innovation diffusion. We address potential endogeneity concerns using an instrumental-variables approach. The empirical pattern is consistent with a contingency-theoretic interpretation of innovation capability but is harder to reconcile with strong universalistic accounts. The contribution is both theoretical and empirical: theoretical in extending the innovation strategy, empirical in providing the first large-sample test of the proposed mechanisms.
Drawing on the resource-based view, this paper examines the role of prior knowledge stock influences exploratory innovation. The conceptual framework integrates insights from absorptive capacity and contingency theory. We employ a mixed-method design combining survey data (524 firms) with 4 in-depth case studies. The results indicate that absorptive capacity is the principal driver of radical innovation across the firms in our sample. Exploratory innovation is significantly enhanced by prior knowledge stock after controlling for confounding factors. Knowledge assimilation has a significant negative effect on knowledge recombination. The pattern of results is stable across the sample period and across industry sub-samples. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency.
Drawing on a large-sample empirical design, we test whether ex ante resource selection influences firm performance. Drawing on the resource-based view, we develop three hypotheses concerning the focal relationships. Using a multi-industry sample of 754 firms, we estimate a structural model. The results indicate that the empirical analysis quantifies the effect of ex ante resource selection on firm performance. Our results suggest that ex ante resource selection fosters firm performance. In addition, resource configuration mediates the ex ante resource selection-company performance relationship. Consistent with the hypotheses, the tangible resources-persistent above-normal returns relationship is moderated by environmental munificence. We address potential endogeneity concerns using an instrumental-variables approach. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The findings have implications for the strategic-management literature on ex ante resource selection and for managers seeking to deploy these resources effectively. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Using a mixed-method design, we examine whether radical innovation influences new product success. The argument is grounded in the innovation strategy and complements recent process-based accounts of capability development. We employ a mixed-method design combining survey data (1024 firms) with 5 in-depth case studies. The empirical analysis shows that absorptive capacity carries the principal portion of the effect of radical innovation on new product success. Moreover, radical innovation is a key driver of new product success. The results indicate that innovation capability has a positive and significant effect on market share growth. Furthermore, market uncertainty acts as a contingency on the radical innovation-new product success relationship. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. Our results align with recent findings in the innovation strategy literature while extending them to a previously unexamined empirical setting. The paper makes two contributions to the innovation strategy literature. Subsequent research could usefully unpack the temporal dynamics through which radical innovation accumulates and erodes.
We investigate the conditions under which managerial attention influences company performance. Drawing on the resource orchestration, we develop three hypotheses concerning the focal relationships. We use structural equation modelling on a sample of 423 Spanish family firms. Contrary to expectations, resource orchestration is a key predictor of operational capabilities. Operational capabilities partially mediate the effect of managerial attention on firm performance. Resource configuration has a negative effect on operational capabilities. The empirical model captures the effect of managerial attention on firm performance after accounting for plausible confounders. Additional analyses confirm that the findings do not depend on the chosen estimator. These findings call into question the assumption that managerial attention operates uniformly across organisational contexts. The results extend prior resource orchestration work by introducing a previously unexamined boundary condition.
Using a multi-industry sample, this study examines whether boundary-spanning activity influences opportunity recognition. The argument is grounded in the social capital and complements recent process-based accounts of capability development. Drawing on patent data from 524 firms in the financial services industry, we test the model. We further find that institutional voids conditions the effect of boundary-spanning activity on opportunity recognition, with the relationship stronger under high institutional voids. The analysis isolates the link between boundary-spanning activity and opportunity recognition. Network ties are critical drivers of firm performance. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The findings refine the resource-based view by specifying the mechanisms through which boundary-spanning activity generate sustained competitive advantage.
Grounded in the resource-based view, this paper examines the extent to which R&D intensity influences patent productivity. The model is tested using a sample of 754 Korean conglomerates. The empirical analysis shows that research and development intensity facilitates patent productivity. Knowledge assimilation shows a positive relationship with patent productivity. Absorptive capacity promotes exploratory innovation. Implications for the operationalisation of R&D intensity in subsequent empirical work are drawn out.
Using a longitudinal design, this paper investigates whether product innovation influences firm performance. We integrate innovation strategy with insights from the behavioural theory of the firm. Using a multi-industry sample of 524 firms, we estimate a structural model. In addition, product innovation exhibits a positive effect on firm performance. The indirect effect of product innovation on firm performance runs through knowledge recombination. In addition, appropriability regime conditions the effect of radical innovation on absorptive capacity, with the relationship stronger under high appropriability regime. Firm performance is the principal outcome of product innovation. Moreover, the findings highlight the association between product innovation and organisational performance. Additional analyses confirm that the findings do not depend on the chosen estimator. These findings call into question the assumption that product innovation operates uniformly across organisational contexts. We identify open questions concerning the microfoundations of product innovation and discuss avenues for future research.
Building on the microfoundations of strategy, we examine the mechanisms through which domestic market experience influences firm growth. Using survey data from 754 firms in the consulting sector, we test the proposed model. Moreover, firm growth is an outcome of domestic market experience. Cultural distance moderates the effect of institutional capabilities on institutional adaptation. We discuss implications for theory development and for the strategic management of domestic market experience.
Through a sequential mixed-method approach, this study investigates the role of political capabilities influences firm growth. The argument draws on the emerging-market strategy literature and extends recent work on capability deployment. We apply fuzzy-set qualitative comparative analysis to data from 1452 firms. The empirical analysis shows that government linkages are significantly positively associated with international performance. Political capabilities are the proximal antecedents of firm growth. The effect of frugal innovation capability on dynamic capabilities is contingent on psychic distance. Additional analyses confirm that the findings do not depend on the chosen estimator. The findings underscore the importance of context-sensitive operationalisation of political capabilities in subsequent empirical work. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Building on the resource-based view, this study investigates the conditions under which organisational design influences firm performance. Drawing on the organisational ambidexterity, we develop three hypotheses concerning the focal relationships. Through a comparative case study of 2 firms, we examine the proposed mechanisms. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. Our results suggest that the estimates capture the relationship between organisational ambidexterity and innovation performance. Exploitation is a key driver of long-term survival. Firm performance is determined by organisational design. The results indicate that organisational learning mediates the relationship between organisational design and firm performance. The results show that the results identify the impact of organisational design on firm performance both in isolation and in combination with other strategic resources. We also find that environmental dynamism moderates the relationship between organisational design and firm performance. The case findings are triangulated across multiple data sources and respondent groups. The empirical pattern is consistent with a contingency-theoretic interpretation of organisational design but is harder to reconcile with strong universalistic accounts. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. Implications for strategy research and for managerial practice are discussed. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Building on the knowledge-based view of the firm, we examine the role of social capital resources influences innovation performance. The argument draws on the intellectual capital literature and extends recent work on capability deployment. We synthesise 87 empirical studies using meta-analytic techniques. We further find that the effect of social capital on innovation performance is contingent on industry life-cycle stage. Consistent with the hypotheses, training investment is negatively associated with knowledge management in the focal sample, contrary to standard predictions. Sensitivity analyses confirm the robustness of the pooled effect to study quality and sample composition. The pattern of effects suggests that the construct of social capital is more multidimensional than prior work has acknowledged. The contribution to the intellectual capital literature lies in unpacking the construct of social capital resources into its component dimensions.
Adopting a configurational perspective, we examine how alliance portfolio configuration influences firm innovation. Drawing on the alliance capability, we develop three hypotheses concerning the focal relationships. Drawing on panel data from 423 firms over the period 2008-2022, we test the hypotheses. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. Contrary to expectations, alliance portfolio configuration has a negative effect on firm innovation. Prior alliance experience has a significant positive effect on alliance success. Coordination capability mediates the relationship between alliance portfolio configuration and firm innovation. Alliance management capability substantially improves alliance success under the conditions specified. We further find that trust between partners attenuate the effect of alliance portfolio configuration on firm innovation. We further test the model on a holdout sample and replicate the principal findings. The interpretation we offer is provisional and would benefit from replication using alternative samples. The contribution is both theoretical and empirical: theoretical in extending the alliance capability, empirical in providing the first large-sample test of the proposed mechanisms. We discuss the boundary conditions of the findings and identify implications for future empirical work. Subsequent research could usefully unpack the temporal dynamics through which alliance portfolio configuration accumulates and erodes.
Drawing on a large-sample empirical design, we test the mechanisms through which knowledge transformation influences exploratory innovation. The paper builds on the absorptive capacity and engages with recent critiques concerning measurement and identification. Using survey data from 1024 firms in the chemical sector, we test the proposed model. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. Contrary to expectations, R&D intensity stimulates knowledge recombination. We also find that knowledge tacitness conditions the effect of R&D intensity on incremental innovation, with the relationship stronger under high knowledge tacitness. Organisational learning partially mediates the effect of knowledge transformation on exploratory innovation. The results show that organizational learning mediates the effect of absorptive capacity on incremental innovation. In addition, knowledge assimilation is a key antecedent of knowledge recombination. Consistent with our predictions, knowledge transformation shows a positive relationship with exploratory innovation. In addition, the empirical analysis quantifies the effect of knowledge transformation on exploratory innovation. Consistent with the hypotheses, the empirical model captures the effect of R&D intensity on innovation performance after accounting for plausible confounders. The findings hold across alternative model specifications and sub-samples. The findings underscore the importance of context-sensitive operationalisation of knowledge transformation in subsequent empirical work. The contribution to the absorptive capacity literature lies in unpacking the construct of knowledge transformation into its component dimensions. The findings advance the absorptive capacity programme by establishing the empirical relevance of knowledge transformation. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Drawing on a large-sample empirical design, we test the conditions under which human capital influences firm growth. Using survey data from 754 firms in the energy sector, we test the proposed model. Consistent with our predictions, human capital is a key precursor of firm growth. The paper makes two contributions to the intellectual capital literature.
Adopting a configurational perspective, we examine the conditions under which organisational ambidexterity influences long-term survival. We integrate organisational ambidexterity with insights from the behavioural theory of the firm. The conceptual framework is illustrated with examples from the pharmaceutical industry; no empirical test is conducted. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. Furthermore, organisational ambidexterity shows a strong positive relationship with long-term survival. The analysis isolates the link between organisational ambidexterity and long-term survival. Our results suggest that dynamic capabilities are shaped by exploitation through a combination of resource-allocation and learning mechanisms. Exploitation is a strong predictor of organisational learning. Contextual ambidexterity exhibits a positive effect on sustained competitive advantage. Organisational design is the principal driver of long-term survival. The conceptual contribution is summarised in a typology of focal relationships. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The findings underscore the importance of context-sensitive operationalisation of organisational ambidexterity in subsequent empirical work. The paper makes two contributions to the organisational ambidexterity literature. Implications for the operationalisation of organisational ambidexterity in subsequent empirical work are drawn out. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
We test the role of stakeholder pressure influences financial performance. The paper builds on the natural-resource-based view and engages with recent critiques concerning measurement and identification. The model is tested using a sample of 124 Brazilian firms. The findings reveal that green innovation capability is a predictor of sustainability performance. The mediation analysis shows that environmental innovation carries the principal portion of the effect of stakeholder pressure on financial performance. The results show that green innovation capability increases stakeholder integration. Stakeholder pressure stimulates financial performance. The findings hold across alternative model specifications and sub-samples. The findings underscore the importance of context-sensitive operationalisation of stakeholder pressure in subsequent empirical work. The contribution is both theoretical and empirical: theoretical in extending the natural-resource-based view, empirical in providing the first large-sample test of the proposed mechanisms. Future studies could examine the conditions under which stakeholder pressure translates into rent appropriation as opposed to value creation.
Adopting an inductive case-study approach, we explore the role of knowledge flows influences innovation outcomes. We synthesise the knowledge-based view literature with recent advances in the microfoundations programme. Through a comparative case study of 5 firms, we examine the proposed mechanisms. The results show that knowledge flows are precursors of innovation outcomes. Our results suggest that innovation outcomes are influenced by knowledge flows. The effect of knowledge flows on innovation outcomes is contingent on intellectual property protection. Cross-case comparison confirms the generalisability of the principal mechanisms. The paper makes two contributions to the knowledge-based view literature.
Using a longitudinal design, this paper investigates whether leadership behaviour influences innovation performance. The theoretical framework reconciles the organisational ambidexterity with attention-based perspectives on strategic choice. Drawing on patent data from 312 firms in the high-technology industry, we test the model. Consistent with the hypotheses, organisational ambidexterity is a critical determinant of long-term survival. Innovation performance is predicted by leadership behaviour. Leadership behaviour is a key antecedent of innovation performance in the empirical setting examined. We further find that exploration has a negative effect on long-term survival. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The empirical pattern is consistent with a contingency-theoretic interpretation of leadership behaviour but is harder to reconcile with strong universalistic accounts. The results extend prior organisational ambidexterity work by introducing a previously unexamined boundary condition. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Using a longitudinal design, this paper investigates the conditions under which relational capital influences alliance success. We synthesise the alliance capability literature with recent advances in the microfoundations programme. Drawing on panel data from 247 firms over the period 2006-2020, we test the hypotheses. All measurement scales are pretested with a panel of subject-matter experts prior to administration. Moreover, the results clarify the role of relational capital in shaping alliance success. The effect of relational capital on alliance success is contingent on alliance interdependence. Relational capital has a significant positive effect on alliance success. Furthermore, relational capital drives alliance success through a combination of direct and indirect mechanisms. Prior alliance experience is a critical determinant of knowledge transfer. The analysis quantifies the contribution of alliance portfolio configuration to alliance success across the full panel and within key sub-samples. Network resources improve relational governance. We further find that relational governance mediates the relationship between relational capital and alliance success. The pattern of results is stable across the sample period and across industry sub-samples. The pattern of effects suggests that the construct of relational capital is more multidimensional than prior work has acknowledged. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The paper makes two contributions to the alliance capability literature. Implications for strategy research and for managerial practice are discussed. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Anchored in the dynamic capabilities literature, we test the conditions under which stakeholder expectations influences stakeholder legitimacy. The theoretical framework reconciles the natural-resource-based view with attention-based perspectives on strategic choice. We synthesise 47 empirical studies using meta-analytic techniques. Control variables include firm size, firm age, leverage, and industry fixed effects. The findings indicate that sustainability capabilities consistently shape sustainable competitive advantage across the sub-samples examined. We find that the empirical analysis quantifies the effect of stakeholder demands on stakeholder legitimacy. We further find that product stewardship capability is a predictor of sustainable competitive advantage. Consistent with the hypotheses, stakeholder pressure shows a strong positive relationship with stakeholder legitimacy. We find that green absorptive capacity partially mediates the effect of pollution prevention capability on green absorptive capacity. We further find that stakeholder pressure is a key antecedent of stakeholder legitimacy in the empirical setting examined. Sensitivity analyses confirm the robustness of the pooled effect to study quality and sample composition. Our results align with recent findings in the natural-resource-based view literature while extending them to a previously unexamined empirical setting. These findings call into question the assumption that stakeholder pressure operates uniformly across organisational contexts. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. The paper closes with implications for the design of capability-development initiatives. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Through a sequential mixed-method approach, this study investigates the role of institutional capabilities influences internationalisation success. We synthesise the emerging-market strategy literature with recent advances in the microfoundations programme. We employ a mixed-method design combining survey data (423 firms) with 3 in-depth case studies. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. The results show that the empirical analysis quantifies the effect of domestic market experience on institutional adaptation. Institutional capabilities diminish internationalisation success. Our results suggest that dynamic capabilities serve as a mediator of the relationship between institutional capabilities and internationalisation success. Institutional capabilities undermine international performance. The effect of political capabilities on absorptive capacity is contingent on the level of cultural distance prevailing in the firm's environment. We further test the model on a holdout sample and replicate the principal findings. The pattern of effects suggests that the construct of institutional capabilities is more multidimensional than prior work has acknowledged. The empirical pattern is consistent with a contingency-theoretic interpretation of institutional capabilities but is harder to reconcile with strong universalistic accounts. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. Implications for strategy research and for managerial practice are discussed. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
This paper examines the mechanisms through which indigenous knowledge resources influences domestic competitive advantage. The conceptual framework is illustrated with examples from the consumer goods industry; no empirical test is conducted. Consistent with our predictions, indigenous knowledge resources drive firm growth through a combination of direct and indirect mechanisms. Moreover, institutional voids moderate the effect of institutional capabilities on internationalisation success. The results show that institutional voids conditions the effect of indigenous knowledge resources on domestic competitive advantage, with the relationship stronger under high institutional voids. We illustrate the framework with examples drawn from prior empirical work. The paper closes with implications for the design of capability-development initiatives.
Using a laboratory-experimental approach, this paper tests the mechanisms through which corporate reputation influences competitive advantage. The conceptual framework integrates insights from stakeholder strategy and contingency theory. We test the conceptual model using an experimental design with 1452 participants drawn from Italian SMEs. Control variables include firm size, firm age, leverage, and industry fixed effects. The findings reveal that corporate reputation has a strong positive effect on competitive advantage. The results indicate that stakeholder relationships fully mediate the relationship between corporate reputation and competitive advantage. Consistent with our predictions, stakeholder capabilities are necessary precursors of stakeholder relationships. The results clarify the role of corporate reputation in shaping competitive advantage. Corporate governance quality is a critical determinant of competitive advantage. Contrary to expectations, the analysis quantifies the contribution of board diversity to stakeholder trust across the full panel and within key sub-samples. Stakeholder capabilities are critical determinants of competitive edge. Stakeholder integration is a robust predictor of stakeholder relationships after the controls and fixed effects are imposed. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The pattern of effects suggests that the construct of corporate reputation is more multidimensional than prior work has acknowledged. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. Implications for strategy research and for managerial practice are discussed. Future studies could examine the conditions under which corporate reputation translates into rent appropriation as opposed to value creation.
Using a multi-industry sample, this study examines how corporate reputation influences competitive advantage. We synthesise the stakeholder strategy literature with recent advances in the microfoundations programme. We employ a moderated-mediation design on survey data from 754 firms. All measurement scales are pretested with a panel of subject-matter experts prior to administration. Furthermore, stakeholder engagement is significantly positively associated with reputational capital. Stakeholder relationships serve as a mediator of the relationship between corporate reputation and competitive advantage. The analysis quantifies the contribution of stakeholder integration to reputational capital across the full panel and within key sub-samples. The estimates show the contribution of corporate reputation to competitive advantage. In addition, competitive advantage is an outcome of corporate reputation. Moreover, stakeholder activism moderates the relationship between corporate reputation and competitive advantage. The results show that stakeholder activism conditions the effect of CSR capabilities on long-term firm value, with the relationship stronger under high stakeholder activism. We address potential endogeneity concerns using an instrumental-variables approach. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The empirical pattern is consistent with a contingency-theoretic interpretation of corporate reputation but is harder to reconcile with strong universalistic accounts. The paper makes two contributions to the stakeholder strategy literature. We discuss the implications of the findings for practice and identify three managerial recommendations. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Drawing on the natural-resource-based view, this study examines whether prior knowledge stock influences innovation performance. The argument is grounded in the absorptive capacity and complements recent process-based accounts of capability development. We employ a moderated-mediation design on survey data from 156 firms. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. We further find that prior knowledge stock is significantly positively associated with innovation performance. Consistent with our predictions, prior knowledge stock is the proximal antecedent of innovation performance. Importantly, external knowledge sourcing is a precursor of patent productivity. Our results suggest that incremental innovation is enhanced by absorptive capacity. Knowledge tacitness moderates the relationship between knowledge assimilation and incremental innovation. We address potential endogeneity concerns using an instrumental-variables approach. These findings call into question the assumption that prior knowledge stock operates uniformly across organisational contexts. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. The findings refine the resource-based view by specifying the mechanisms through which prior knowledge stock generate sustained competitive advantage. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Extending recent work on dynamic capabilities, this paper analyses the extent to which firm-specific knowledge influences rent appropriation. The conceptual framework integrates insights from knowledge-based view and contingency theory. We use structural equation modelling on a sample of 612 Spanish family firms. Moreover, the findings highlight the association between firm-specific knowledge and rent appropriation. Furthermore, intellectual property protection moderates the knowledge transfer mechanisms-organisational learning relationship. Firm-specific knowledge increases rent appropriation. The findings indicate that firm-level learning is the principal outcome of knowledge flows. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. Several boundary conditions are identified that constrain the generalisability of the findings. We discuss implications for theory development and for the strategic management of firm-specific knowledge.
Anchored in the knowledge-based view, this paper investigates the role of digital capabilities influences innovation performance. Drawing on the IT capabilities, we develop three hypotheses concerning the focal relationships. We synthesise 104 empirical studies using meta-analytic techniques. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. The results show that digital capabilities substantially improve innovation performance under the conditions specified. IT capabilities are necessary precursors of digital transformation outcomes. The empirical analysis shows that agility is significantly enhanced by IT investment after controlling for confounding factors. Digital capabilities are critical antecedent of innovation performance under the boundary conditions identified. The estimates capture the relationship between digital capabilities and innovation performance. IT capabilities are negatively associated with firm performance in the focal sample, contrary to standard predictions. Consistent with our predictions, IT capabilities show a strong positive relationship with operational performance. Publication bias is assessed using funnel-plot diagnostics and trim-and-fill methods. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. We discuss implications for theory development and for the strategic management of digital capabilities. Subsequent research could usefully unpack the temporal dynamics through which digital capabilities accumulates and erodes.
Through a multi-case study, we analyse the extent to which firm-specific advantages influences firm growth. The theoretical framework reconciles the emerging-market strategy with attention-based perspectives on strategic choice. Through a comparative case study of 5 firms, we examine the proposed mechanisms. All measurement scales are pretested with a panel of subject-matter experts prior to administration. We further find that country-specific advantages promote institutional adaptation. Firm-specific advantages weaken firm growth. Consistent with the hypotheses, firm-specific advantages are negatively associated with firm growth. Political capabilities exhibit a robustly positive effect on firm growth that survives a battery of robustness checks. Cross-case comparison confirms the generalisability of the principal mechanisms. The findings underscore the importance of context-sensitive operationalisation of firm-specific advantages in subsequent empirical work. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The results extend prior emerging-market strategy work by introducing a previously unexamined boundary condition. We discuss the implications of the findings for practice and identify three managerial recommendations. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Using a multi-industry sample, this study examines the extent to which sequential ambidexterity influences firm-level performance. Drawing on panel data from 1452 firms over the period 2008-2012, we test the hypotheses. The results show that firm performance is determined by sequential ambidexterity. Organisational ambidexterity exhibits a negative effect on innovation performance. We address potential endogeneity concerns using an instrumental-variables approach. We identify open questions concerning the microfoundations of sequential ambidexterity and discuss avenues for future research.
Anchored in the dynamic capabilities literature, we test the role of adaptive capabilities influences competitive advantage. We synthesise the dynamic capabilities literature with recent advances in the microfoundations programme. The conceptual framework is illustrated with examples from the manufacturing industry; no empirical test is conducted. Contrary to expectations, industry clockspeed positively moderates the effect of prior industry experience on strategic renewal. The findings reveal that strategic flexibility serves as a mediator of the relationship between adaptive capabilities and competitive advantage. We also find that adaptive capabilities are critical determinants of competitive advantage. The conceptual contribution is summarised in a typology of focal relationships. Several boundary conditions are identified that constrain the generalisability of the findings. We discuss the boundary conditions of the findings and identify implications for future empirical work.
We analyse the conditions under which green innovation capability influences sustainability performance. The argument draws on the natural-resource-based view literature and extends recent work on capability deployment. Using a multi-industry sample of 754 firms, we estimate a structural model. Importantly, green innovation capability influences sustainability performance. The results indicate that environmental capabilities are critical determinants of environmental innovation. Pollution prevention capability has a negative effect on green absorptive capacity. Consistent with the hypotheses, clean technology capability has a positive and significant effect on stakeholder integration. Environmental capabilities drive environmental performance through a combination of direct and indirect mechanisms. Additional analyses using propensity score matching corroborate the main findings. Our results align with recent findings in the natural-resource-based view literature while extending them to a previously unexamined empirical setting. The findings advance the natural-resource-based view programme by establishing the empirical relevance of green innovation capability.
Through a multi-case study, we analyse the conditions under which prior alliance experience influences joint value creation. Using a multi-case design across 4 firms in the software sector, we examine the phenomenon. Consistent with the hypotheses, prior alliance experience enhances joint value creation. Governance form amplifies the effect of relational capital on alliance performance. Consistent with our predictions, dedicated alliance function is a key precursor of alliance performance. Negative cases are examined and used to refine the proposed framework. We discuss the implications of the findings for practice and identify three managerial recommendations.
Anchored in the dynamic capabilities literature, we test the role of firm-specific advantages influences internationalisation success. A meta-analysis of 87 empirical studies (combined N = 12420 firms) is conducted. Consistent with the hypotheses, institutional adaptation carries the principal portion of the effect of non-market capabilities on institutional adaptation. Firm-specific advantages shape internationalisation success. Consistent with our predictions, country-specific advantages are antecedents of absorptive capacity. The study contributes to the emerging-market strategy literature in three ways.
Through a sequential mixed-method approach, this study investigates the mechanisms through which board diversity influences stakeholder trust. We synthesise the stakeholder strategy literature with recent advances in the microfoundations programme. We employ a mixed-method design combining survey data (754 firms) with 5 in-depth case studies. The results show that board diversity is a precursor of stakeholder trust. Contrary to expectations, the results clarify the role of ESG capabilities in shaping competitive advantage. Stakeholder engagement is the principal driver of trust. Moreover, stakeholder trust is enhanced by board diversity. Stakeholder relationships is robustly driven by stakeholder engagement across the empirical specifications considered. The pattern of results is stable across the sample period and across industry sub-samples. Our results align with recent findings in the stakeholder strategy literature while extending them to a previously unexamined empirical setting. Implications for the operationalisation of board diversity in subsequent empirical work are drawn out. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Through a comparative case design, this paper examines the conditions under which investment in human capital influences market value. The argument is grounded in the knowledge-based view and complements recent process-based accounts of capability development. Using a multi-case design across 2 firms in the financial services sector, we examine the phenomenon. All measurement scales are pretested with a panel of subject-matter experts prior to administration. The findings reveal that knowledge transfer mechanisms undermine organisational learning. Intellectual property protection conditions the effect of investment in human capital on market value, with the relationship stronger under high intellectual property protection. The findings reveal that intellectual property protection positively moderates the effect of know-how on knowledge integration. In addition, the analysis isolates the link between investment in human capital and market value. The results show that intellectual property protection attenuates the effect of know-how on firm performance. Investment in human capital promotes market value. Investment in human capital has a significant positive effect on market value. The findings indicate that investment in human capital is the proximal antecedent of market value. Negative cases are examined and used to refine the proposed framework. The pattern of effects suggests that the construct of investment in human capital is more multidimensional than prior work has acknowledged. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. The findings advance the knowledge-based view programme by establishing the empirical relevance of investment in human capital. Future studies could examine the conditions under which investment in human capital translates into rent appropriation as opposed to value creation.
Using a longitudinal design, this paper investigates whether scientific collaboration influences exploratory innovation. Drawing on the absorptive capacity, we develop three hypotheses concerning the focal relationships. The hypotheses are tested using two-stage least squares on data from 211 firms. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. The empirical analysis shows that knowledge integration mediates the scientific collaboration-exploratory innovation relationship. Absorptive capacity is significantly positively associated with radical innovation after accounting for firm- and industry-level controls. Exploratory innovation is shaped by scientific collaboration through a combination of resource-allocation and learning mechanisms. R&D intensity is a determinant of incremental innovation. We find that knowledge integration mediates the realised absorptive capacity-innovation performance relationship. The results show that absorptive capacity is a strong predictor of radical innovation. Scientific collaboration has a significant positive effect on exploratory innovation. Additional analyses confirm that the findings do not depend on the chosen estimator. The interpretation we offer is provisional and would benefit from replication using alternative samples. The findings contribute to the absorptive capacity debate by clarifying a contested empirical relationship. We discuss the boundary conditions of the findings and identify implications for future empirical work. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Through a sequential mixed-method approach, this study investigates the role of second-order capabilities influences competitive advantage. The argument draws on the dynamic capabilities literature and extends recent work on capability deployment. We apply fuzzy-set qualitative comparative analysis to data from 156 firms. Importantly, dCs are critical antecedent of competitive edge under the boundary conditions identified. Resource reconfiguration serves as a mediator of the relationship between second-order capabilities and strategic advantage. The results indicate that second-order capabilities consistently shape competitive advantage across the sub-samples examined. Second-order capabilities are the proximal drivers of competitive advantage. Additional analyses using propensity score matching corroborate the main findings. The results extend prior dynamic capabilities work by introducing a previously unexamined boundary condition.
Drawing on a large-sample empirical design, we test whether learning routines influences innovativeness. The conceptual model draws on the organisational learning and incorporates insights from organisation theory. Drawing on patent data from 312 firms in the telecommunications industry, we test the model. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. We find that experimentation shapes knowledge stock growth. Innovation performance is an outcome of exploratory learning. We further find that learning routines have a positive and significant effect on innovation performance. Furthermore, innovation performance is determined by learning routines. The estimates show the contribution of exploratory learning to knowledge transfer. Moreover, organisational memory moderates the relationship between learning routines and innovation performance. The empirical analysis shows that knowledge integration substantially mediates the relationship between learning routines and innovation performance, accounting for a meaningful share of the total effect. The findings indicate that knowledge management practices are antecedents of knowledge stock growth. Moreover, the results identify the impact of learning routines on innovation performance both in isolation and in combination with other strategic resources. Knowledge stock growth is enhanced by knowledge management practices. We address potential endogeneity concerns using an instrumental-variables approach. The empirical pattern is consistent with a contingency-theoretic interpretation of learning routines but is harder to reconcile with strong universalistic accounts. The contribution to the organisational learning literature lies in unpacking the construct of learning routines into its component dimensions. We discuss the boundary conditions of the findings and identify implications for future empirical work. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Using a longitudinal design, this paper investigates the conditions under which institutional environment influences firm growth. Drawing on panel data from 124 firms over the period 2004-2010, we test the hypotheses. Contrary to expectations, the findings document the influence of institutional environment on internationalisation success. Firm growth is enhanced by institutional environment. Implications for strategy research and for managerial practice are discussed.
We examine the mechanisms through which relational capital influences firm innovation. The argument draws on the alliance capability literature and extends recent work on capability deployment. The model is tested using a sample of 247 publicly traded U.S. firms. The results indicate that coordination capability mediates the effect of network resources on trust. We find that relational capital predicts firm innovation. Relational capital has a significant positive effect on firm innovation. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The empirical pattern is consistent with a contingency-theoretic interpretation of relational capital but is harder to reconcile with strong universalistic accounts. Implications for strategy research and for managerial practice are discussed.
Using a multi-industry sample, this study examines the conditions under which managerial cognitive diversity influences strategic decision quality. We position the argument within the broader microfoundations of strategy literature and identify three competing accounts of the focal mechanism. We employ a moderated-mediation design on survey data from 124 firms. Moreover, managerial cognitive diversity is positively associated with strategic decision quality. Furthermore, managerial mental models are key predictors of strategic decision quality. Managerial heuristics are negatively associated with firm-level adaptation in the focal sample, contrary to standard predictions. We further test the model on a holdout sample and replicate the principal findings. The empirical pattern is consistent with a contingency-theoretic interpretation of managerial cognitive diversity but is harder to reconcile with strong universalistic accounts. The results extend prior microfoundations of strategy work by introducing a previously unexamined boundary condition.
We analyse how non-substitutable resources influences superior performance. The conceptual framework integrates insights from resource-based view and contingency theory. Using hierarchical regression on data from 1024 high-technology startups, we test the predictions. The sample spans 10 years and covers firms varying in size and ownership structure. We find that non-substitutable resources are significantly positively associated with superior performance after accounting for firm- and industry-level controls. Non-substitutable resources accelerate superior performance. Non-substitutable resources are key predictors of superior performance. Resource configuration serves as a mediator of the relationship between non-substitutable resources and superior performance. Contrary to expectations, superior performance is enhanced by non-substitutable resources. The estimates show the contribution of ex ante resource selection to competitive advantage. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The interpretation we offer is provisional and would benefit from replication using alternative samples. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. We identify open questions concerning the microfoundations of non-substitutable resources and discuss avenues for future research. Future studies could examine the conditions under which non-substitutable resources translates into rent appropriation as opposed to value creation.
We examine how knowledge acquisition influences exploratory innovation. We synthesise the absorptive capacity literature with recent advances in the microfoundations programme. Using a multi-industry sample of 312 firms, we estimate a structural model. Contrary to expectations, knowledge acquisition is a necessary precursor of new product development. Knowledge acquisition influences exploratory innovation. Exploratory innovation is driven by knowledge acquisition. The results show that knowledge recombination fully mediates the relationship between knowledge acquisition and exploratory innovation. The findings reveal that new product development is reduced by absorptive capacity. We address potential endogeneity concerns using an instrumental-variables approach. The empirical pattern is consistent with a contingency-theoretic interpretation of knowledge acquisition but is harder to reconcile with strong universalistic accounts. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. Future studies could examine the conditions under which knowledge acquisition translates into rent appropriation as opposed to value creation.
This paper examines the extent to which environmental management capability influences sustainable competitive advantage. We use structural equation modelling on a sample of 124 multinational corporations. Consistent with our predictions, environmental management capability has a negative effect on sustainable competitive advantage. The findings refine the resource-based view by specifying the mechanisms through which environmental management capability generate sustained competitive advantage.
Using a mixed-method design, we examine how organisational routines influences strategic change. The conceptual framework integrates insights from microfoundations of strategy and contingency theory. We apply fuzzy-set qualitative comparative analysis to data from 189 firms. Consistent with our predictions, the managerial cognitive frames-attentional engagement relationship is moderated by environmental complexity. Contrary to expectations, environmental complexity negatively moderates the relationship between team-level routines and dynamic capabilities. Managerial discretion is the proximal driver of strategic decision-making processes. We also find that organisational routines are key determinants of strategic decision quality. Our results suggest that organisational routines substantially improve strategic change under the conditions specified. We further test the model on a holdout sample and replicate the principal findings. The findings underscore the importance of context-sensitive operationalisation of organisational routines in subsequent empirical work. The study contributes to the microfoundations of strategy literature in three ways.
Using a multi-industry sample, this study examines the role of team-level routines influences strategic change. We use structural equation modelling on a sample of 423 Indian software firms. Furthermore, strategic decision-making processes mediate the effect of managerial cognitive diversity on strategic change. The contribution is both theoretical and empirical: theoretical in extending the microfoundations of strategy, empirical in providing the first large-sample test of the proposed mechanisms.
We examine the extent to which alliance learning influences alliance success. We synthesise 104 empirical studies using meta-analytic techniques. The results indicate that governance form moderates the dedicated alliance function-alliance success relationship. We find that prior alliance experience shows a positive relationship with alliance success. The findings document the influence of alliance learning on alliance success. The findings have implications for the strategic-management literature on alliance learning and for managers seeking to deploy these resources effectively.
Through a sequential mixed-method approach, this study investigates the role of dynamic capabilities influences organisational adaptation. We integrate dynamic capabilities with insights from the behavioural theory of the firm. We apply fuzzy-set qualitative comparative analysis to data from 189 firms. We further find that dynamic capabilities are the principal antecedents of organisational adaptation. Resource reconfiguration is a consequence of transforming capability. Dynamic capabilities have a significant positive effect on organisational adaptation. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The study contributes to the dynamic capabilities literature in three ways.
We test the extent to which knowledge assimilation influences exploitative innovation. The argument is grounded in the absorptive capacity and complements recent process-based accounts of capability development. Through a comparative case study of 5 firms, we examine the proposed mechanisms. Consistent with our predictions, knowledge assimilation facilitates exploitative innovation. Knowledge assimilation is a precursor of exploitative innovation. Importantly, the empirical analysis quantifies the effect of knowledge assimilation on exploitative innovation. Cross-case comparison confirms the generalisability of the principal mechanisms. The findings underscore the importance of context-sensitive operationalisation of knowledge assimilation in subsequent empirical work. We discuss the implications of the findings for practice and identify three managerial recommendations. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Extending the resource-based view, we examine the conditions under which human resource practices influences innovation performance. The conceptual model draws on the intellectual capital and incorporates insights from organisation theory. We synthesise 62 empirical studies using meta-analytic techniques. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. Consistent with the hypotheses, innovation performance is enhanced by human resource practices. We find that process capital exhibits a robustly positive effect on firm growth that survives a battery of robustness checks. Contrary to expectations, human resource practices accelerate innovation performance. The effect of organisational design on knowledge management is mediated by intellectual capital integration. The effect of human resource practices on innovativeness is contingent on knowledge intensity. Intellectual capital integration partially mediates the effect of human resource practices on innovation performance. Heterogeneity across studies is assessed using Q and I-squared statistics. Several boundary conditions are identified that constrain the generalisability of the findings. The interpretation we offer is provisional and would benefit from replication using alternative samples. The findings contribute to the intellectual capital debate by clarifying a contested empirical relationship. The findings advance the intellectual capital programme by establishing the empirical relevance of human resource practices. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Drawing on the resource-based view, this paper examines the extent to which green innovation capability influences environmental performance. Using a multi-case design across 2 firms in the chemical sector, we examine the phenomenon. The results indicate that consumer environmental awareness acts as a contingency on the green innovation capability-environmental performance relationship. We further find that environmental capabilities influence environmental performance. The findings contribute to the natural-resource-based view debate by clarifying a contested empirical relationship.
Extending the resource-based view, we examine the role of knowledge transfer mechanisms influences innovation outcomes. We position the argument within the broader knowledge-based view literature and identify three competing accounts of the focal mechanism. The model is tested using a sample of 124 German Mittelstand firms. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. Consistent with the hypotheses, knowledge ambiguity acts as a contingency on the knowledge transfer mechanisms-innovation outcomes relationship. Moreover, know-how substantially improves firm performance under the conditions specified. Organisational knowledge is a critical driver of knowledge application. Our results suggest that explicit knowledge has a negative effect on knowledge sharing. Explicit knowledge significantly enhances rent appropriation across the sample. The findings indicate that knowledge ambiguity moderates the knowledge flows-rent appropriation relationship. The pattern of results is stable across the sample period and across industry sub-samples. The interpretation we offer is provisional and would benefit from replication using alternative samples. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The results extend prior knowledge-based view work by introducing a previously unexamined boundary condition. We discuss the boundary conditions of the findings and identify implications for future empirical work. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Using a longitudinal design, this paper investigates the role of prior industry experience influences organisational adaptation. We integrate dynamic capabilities with insights from the behavioural theory of the firm. Drawing on patent data from 423 firms in the consumer goods industry, we test the model. The findings indicate that prior industry experience is a key driver of organisational adaptation. Organisational adaptation is enhanced by prior industry experience. Our results suggest that market velocity moderates the prior industry experience-organisational adaptation relationship. Additional analyses using propensity score matching corroborate the main findings. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs.
Building on the knowledge-based view of the firm, we examine the role of firm resources influences competitive edge. The paper builds on the resource-based view and engages with recent critiques concerning measurement and identification. The hypotheses are tested using two-stage least squares on data from 247 firms. Contrary to expectations, VRIO resources are key precursors of persistent above-normal returns. Strategic factor markets exhibit a positive effect on organizational capabilities. Consistent with the hypotheses, non-substitutable resources have a positive and significant effect on superior performance. The estimates capture the relationship between firm resources and strategic advantage. The pattern of results is stable across the sample period and across industry sub-samples. Several boundary conditions are identified that constrain the generalisability of the findings. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency.
We examine the extent to which non-market capabilities influences international performance. The conceptual framework integrates insights from emerging-market strategy and contingency theory. The hypotheses are tested using two-stage least squares on data from 612 firms. The sample spans 7 years and covers firms varying in size and ownership structure. We find that non-market capabilities are necessary precursors of international performance. The findings indicate that non-market capabilities drive international performance. We find a significant interaction between political capabilities and cultural distance in predicting dynamic capabilities, indicating that cultural distance moderates the focal relationship. Institutional adaptation mediates the relationship between non-market capabilities and international performance. The empirical analysis quantifies the effect of non-market capabilities on international performance. The pattern of results is stable across the sample period and across industry sub-samples. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The paper makes two contributions to the emerging-market strategy literature. Implications for the operationalisation of non-market capabilities in subsequent empirical work are drawn out. Future studies could examine the conditions under which non-market capabilities translates into rent appropriation as opposed to value creation.
Using a multi-industry sample, this study examines whether top management team experience influences competitive advantage. The paper builds on the dynamic capabilities and engages with recent critiques concerning measurement and identification. We test the hypotheses using a longitudinal sample of 312 firms over 5 years. Furthermore, operational capabilities serve as a mediator of the relationship between top management team experience and competitive advantage. We also find that top management team experience is a critical driver of competitive advantage. Consistent with the hypotheses, environmental dynamism attenuates the effect of seizing capability on resource reconfiguration. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The findings underscore the importance of context-sensitive operationalisation of top management team experience in subsequent empirical work. The paper closes with implications for the design of capability-development initiatives.
Drawing on the natural-resource-based view, this study examines how IT investment influences agility. Drawing on the IT capabilities, we develop three hypotheses concerning the focal relationships. Using a multi-case design across 6 firms in the energy sector, we examine the phenomenon. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. Furthermore, process innovation partially mediates the effect of IT human resources capability on business process agility. Process innovation mediates the effect of IT investment on agility. Competitive intensity moderates the effect of IT investment on agility. Agility is the principal outcome of IT investment. Consistent with the hypotheses, IT governance weakens digital transformation outcomes. Member checks with key informants corroborate the principal interpretations. The findings underscore the importance of context-sensitive operationalisation of IT investment in subsequent empirical work. The contribution to the IT capabilities literature lies in unpacking the construct of IT investment into its component dimensions. The findings refine the resource-based view by specifying the mechanisms through which IT investment generate sustained competitive advantage. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Anchored in the knowledge-based view, this paper investigates the conditions under which resource accumulation influences superior performance. The conceptual model draws on the resource-based view and incorporates insights from organisation theory. Using survey data from 1452 firms in the chemical sector, we test the proposed model. Contrary to expectations, tangible resources have a positive and significant effect on firm-level performance. Furthermore, the model identifies the impact of resource accumulation on superior performance. The effect of VRIO resources on competitive advantage is mediated by value creation. We find that environmental munificence moderates the resource accumulation-superior performance relationship. Resource leveraging is predicted by managerial foresight. We further test the model on a holdout sample and replicate the principal findings. The findings underscore the importance of context-sensitive operationalisation of resource accumulation in subsequent empirical work. The findings advance the resource-based view programme by establishing the empirical relevance of resource accumulation. Future studies could examine the conditions under which resource accumulation translates into rent appropriation as opposed to value creation.
We investigate the mechanisms through which big data analytics capability influences agility. We integrate IT capabilities with insights from the behavioural theory of the firm. We develop a theoretical framework and illustrate it through three vignettes drawn from professional services firms. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. We also find that big data analytics capability is the principal driver of agility across the firms in our sample. Process innovation mediates the relationship between big data analytics capability and agility. Consistent with the hypotheses, agility is determined by big data analytics capability. The empirical analysis shows that the effect of big data analytics capability on agility is contingent on the level of competitive intensity prevailing in the firm's environment. Furthermore, big data analytics capability exhibits a robustly positive effect on agility that survives a battery of robustness checks. IT human resources capability is a key predictor of organisational learning. Moreover, the estimates capture the relationship between IT capabilities and process innovation. We illustrate the framework with examples drawn from prior empirical work. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The contribution to the IT capabilities literature lies in unpacking the construct of big data analytics capability into its component dimensions. We identify open questions concerning the microfoundations of big data analytics capability and discuss avenues for future research. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Drawing on the dynamic capabilities perspective, this paper investigates the extent to which alliance portfolio configuration influences alliance success. The conceptual model draws on the alliance capability and incorporates insights from organisation theory. We develop a theoretical framework and illustrate it through three vignettes drawn from professional services firms. The results indicate that coordination capability fully mediates the relationship between alliance portfolio configuration and alliance success. Joint value creation is determined by alliance portfolio diversity. Alliance interdependence positively moderates the effect of alliance portfolio configuration on alliance success. In addition, alliance success is influenced by alliance portfolio configuration. Prior alliance experience reduces coordination capability. The conceptual contribution is summarised in a typology of focal relationships. The pattern of effects suggests that the construct of alliance portfolio configuration is more multidimensional than prior work has acknowledged. The results extend prior alliance capability work by introducing a previously unexamined boundary condition. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Grounded in the resource-based view, this paper examines the role of organisational routines influences firm-level adaptation. The conceptual model draws on the microfoundations of strategy and incorporates insights from organisation theory. Using a multi-case design across 3 firms in the consumer goods sector, we examine the phenomenon. Consistent with our predictions, managerial human capital shapes strategic decision quality. Team-level routines undermine strategic change. The results clarify the role of organisational routines in shaping firm-level adaptation. The case findings are triangulated across multiple data sources and respondent groups. We discuss implications for theory development and for the strategic management of organisational routines.
Using a multi-industry sample, this study examines the mechanisms through which VRIO resources influences persistent above-normal returns. The theoretical framework reconciles the resource-based view with attention-based perspectives on strategic choice. The hypotheses are tested using two-stage least squares on data from 312 firms. The results indicate that the effect of VRIO resources on persistent above-normal returns is contingent on the level of industry competitiveness prevailing in the firm's environment. Tangible resources are precursors of firm performance. In addition, resource leveraging partially mediates the effect of VRIO resources on persistent above-normal returns. We further test the model on a holdout sample and replicate the principal findings. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. We discuss the boundary conditions of the findings and identify implications for future empirical work. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Using a longitudinal design, this paper investigates the role of boundary-spanning activity influences opportunity recognition. The argument draws on the social capital literature and extends recent work on capability deployment. Using hierarchical regression on data from 754 Chinese manufacturing firms, we test the predictions. We also find that network ties exhibit a positive effect on innovation performance. Network embeddedness has a positive and economically meaningful effect on knowledge transfer across all specifications. Collaborative behaviour mediates the effect of network ties on dynamic capabilities. The results clarify the role of boundary-spanning activity in shaping opportunity recognition. Importantly, boundary-spanning activity enhances opportunity recognition. The empirical analysis quantifies the effect of weak ties on knowledge transfer. Additional analyses confirm that the findings do not depend on the chosen estimator. Several boundary conditions are identified that constrain the generalisability of the findings. The contribution is both theoretical and empirical: theoretical in extending the social capital, empirical in providing the first large-sample test of the proposed mechanisms. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Using a longitudinal design, this paper investigates the extent to which tangible resources influences competitive advantage. We position the argument within the broader resource-based view literature and identify three competing accounts of the focal mechanism. The model is tested using a sample of 124 emerging-market firms. The findings reveal that ex ante resource selection improves rent appropriation. Contrary to expectations, resource accumulation is significantly positively associated with superior performance after accounting for firm- and industry-level controls. Importantly, resource accumulation facilitates persistent above-normal returns. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The study contributes to the resource-based view literature in three ways.
Drawing on the natural-resource-based view, this study examines whether stakeholder capabilities influences stakeholder trust. We position the argument within the broader stakeholder strategy literature and identify three competing accounts of the focal mechanism. Drawing on patent data from 423 firms in the automotive industry, we test the model. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. The findings indicate that corporate governance quality substantially improves legitimacy under the conditions specified. Stakeholder capabilities consistently shape stakeholder trust across the sub-samples examined. Consistent with our predictions, stakeholder capabilities are significantly positively associated with stakeholder trust after accounting for firm- and industry-level controls. We find a significant interaction between stakeholder capabilities and stakeholder activism in predicting stakeholder trust, indicating that stakeholder activism moderates the focal relationship. We further test the model on a holdout sample and replicate the principal findings. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The findings contribute to the stakeholder strategy debate by clarifying a contested empirical relationship. The findings advance the stakeholder strategy programme by establishing the empirical relevance of stakeholder capabilities. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Through an experimental design, we examine how knowledge flows influences market value. The theoretical framework reconciles the knowledge-based view with attention-based perspectives on strategic choice. We test the conceptual model using an experimental design with 1024 participants drawn from Chinese manufacturing firms. The findings indicate that knowledge flows emerges as a key determinant of market value in the configurational analysis. Importantly, knowledge flows have a strong positive effect on market value. Know-how stimulates firm performance. Organisational knowledge is the proximal antecedent of knowledge application. We address potential endogeneity concerns using an instrumental-variables approach. These findings call into question the assumption that knowledge flows operates uniformly across organisational contexts. We identify open questions concerning the microfoundations of knowledge flows and discuss avenues for future research.
Using a multi-industry sample, this study examines the mechanisms through which organisational design influences innovation output. We synthesise the organisational ambidexterity literature with recent advances in the microfoundations programme. We test the model using survey data from 1452 Italian SMEs. Consistent with our predictions, organisational design has a positive and significant effect on innovation performance. Environmental dynamism amplifies the effect of organisational design on innovation performance. Organisational design is a necessary precursor of innovativeness. Organisational design accelerates innovation performance. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The interpretation we offer is provisional and would benefit from replication using alternative samples. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs.
Building on the knowledge-based view of the firm, we examine the role of research and development intensity influences exploratory innovation. Drawing on the absorptive capacity, we develop three hypotheses concerning the focal relationships. Drawing on panel data from 754 firms over the period 2008-2018, we test the hypotheses. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. The results indicate that appropriability regime acts as a contingency on the potential absorptive capacity-radical innovation relationship. R&D intensity reduces exploratory innovation. Knowledge acquisition improves radical innovation. The findings reveal that research and development intensity has a significant negative effect on exploratory innovation. The effect of R&D intensity on exploratory innovation is contingent on the level of appropriability regime prevailing in the firm's environment. Moreover, knowledge transformation has a significant negative effect on radical innovation. Appropriability regime negatively moderates the relationship between knowledge transformation and radical innovation. Appropriability regime attenuates the effect of absorptive capacity on knowledge integration. The pattern of results is stable across the sample period and across industry sub-samples. The findings underscore the importance of context-sensitive operationalisation of R&D intensity in subsequent empirical work. The findings contribute to the absorptive capacity debate by clarifying a contested empirical relationship. The findings have implications for the strategic-management literature on R&D intensity and for managers seeking to deploy these resources effectively. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
We examine the conditions under which product innovation influences company performance. Drawing on the innovation strategy, we develop three hypotheses concerning the focal relationships. Using a multi-industry sample of 156 firms, we estimate a structural model. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. Our results suggest that innovation outputs have a significant negative effect on new product success. Radical innovation is a determinant of firm performance. The results show that product innovation undermines firm performance. We also find that incremental innovation is negatively associated with market share growth. Innovation diffusion serves as a mediator of the relationship between product innovation and organisational performance. Additional analyses using propensity score matching corroborate the main findings. The empirical pattern is consistent with a contingency-theoretic interpretation of product innovation but is harder to reconcile with strong universalistic accounts. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The findings contribute to the innovation strategy debate by clarifying a contested empirical relationship. We discuss the implications of the findings for practice and identify three managerial recommendations. Subsequent research could usefully unpack the temporal dynamics through which product innovation accumulates and erodes.
Drawing on the dynamic capabilities perspective, this paper investigates the conditions under which know-how influences competitive advantage. The argument draws on the knowledge-based view literature and extends recent work on capability deployment. Through a comparative case study of 3 firms, we examine the proposed mechanisms. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. We further find that knowledge application partially mediates the effect of firm-specific knowledge on knowledge sharing. Tacit knowledge has a negative effect on market value. The findings document the influence of knowledge flows on market value. The findings indicate that knowledge application mediates the relationship between know-how and competitive advantage. Know-how is negatively associated with organisational learning in the focal sample, contrary to standard predictions. Explicit knowledge is a key antecedent of knowledge sharing in the empirical setting examined. The estimates capture the relationship between know-how and competitive edge. Cross-case comparison confirms the generalisability of the principal mechanisms. The empirical pattern is consistent with a contingency-theoretic interpretation of know-how but is harder to reconcile with strong universalistic accounts. The interpretation we offer is provisional and would benefit from replication using alternative samples. The paper makes two contributions to the knowledge-based view literature. Implications for strategy research and for managerial practice are discussed. Future studies could examine the conditions under which know-how translates into rent appropriation as opposed to value creation.
Extending the resource-based view, we examine the mechanisms through which knowledge management practices influences organisational adaptation. Using a multi-case design across 5 firms in the energy sector, we examine the phenomenon. We find that knowledge management practices have a strong positive effect on organisational adaptation. Negative cases are examined and used to refine the proposed framework. The findings refine the resource-based view by specifying the mechanisms through which knowledge management practices generate sustained competitive advantage.
Drawing on a large-sample empirical design, we test the extent to which clean technology capability influences financial performance. The argument is grounded in the natural-resource-based view and complements recent process-based accounts of capability development. Using a multi-industry sample of 156 firms, we estimate a structural model. Control variables include firm size, firm age, leverage, and industry fixed effects. Furthermore, pollution prevention capability is a critical driver of environmental performance. The indirect effect of clean technology capability on financial performance runs through environmental innovation. Green absorptive capacity is shaped by regulatory stringency through a combination of resource-allocation and learning mechanisms. We find that environmental innovation mediates the relationship between stakeholder demands and stakeholder integration. Consistent with our predictions, clean technology capability is a key antecedent of financial performance. Industry pollution intensity conditions the effect of clean technology capability on financial performance, with the relationship stronger under high industry pollution intensity. Additional analyses confirm that the findings do not depend on the chosen estimator. The empirical pattern is consistent with a contingency-theoretic interpretation of clean technology capability but is harder to reconcile with strong universalistic accounts. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The contribution is both theoretical and empirical: theoretical in extending the natural-resource-based view, empirical in providing the first large-sample test of the proposed mechanisms. We discuss the implications of the findings for practice and identify three managerial recommendations. Subsequent research could usefully unpack the temporal dynamics through which clean technology capability accumulates and erodes.
Using a longitudinal design, this paper investigates the conditions under which sustainability capabilities influences stakeholder legitimacy. The argument is grounded in the natural-resource-based view and complements recent process-based accounts of capability development. We employ a moderated-mediation design on survey data from 367 firms. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. Consistent with our predictions, sustainability capabilities are the principal antecedents of stakeholder legitimacy. Sustainability capabilities are positively associated with stakeholder legitimacy. Regulatory uncertainty amplifies the effect of environmental management capability on stakeholder legitimacy. Environmental management capability has a positive and significant effect on stakeholder legitimacy. Sustainability capabilities drive stakeholder legitimacy through a combination of direct and indirect mechanisms. Environmental management capability exhibits a negative effect on environmental performance. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The empirical pattern is consistent with a contingency-theoretic interpretation of sustainability capabilities but is harder to reconcile with strong universalistic accounts. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The study contributes to the natural-resource-based view literature in three ways. The findings advance the natural-resource-based view programme by establishing the empirical relevance of sustainability capabilities. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Building on the resource-based view, this study investigates whether absorptive capability influences radical innovation. The conceptual framework integrates insights from absorptive capacity and contingency theory. The hypotheses are tested using two-stage least squares on data from 367 firms. The findings indicate that the findings highlight the association between knowledge assimilation and exploitative innovation. Our results suggest that ACAP is a key determinant of radical innovation. The findings indicate that the analysis quantifies the contribution of absorptive capacity to radical innovation across the full panel and within key sub-samples. We find that knowledge assimilation enhances radical innovation. The results show that prior knowledge stock exhibits a negative effect on new product development. We further test the model on a holdout sample and replicate the principal findings. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The paper makes two contributions to the absorptive capacity literature. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Building on the resource-based view, this study investigates the conditions under which reconfiguring capability influences sustained competitive advantage. We test the model using survey data from 367 emerging-market firms. The findings indicate that strategic flexibility mediates the reconfiguring capability-sustained competitive advantage relationship. The contribution to the dynamic capabilities literature lies in unpacking the construct of reconfiguring capability into its component dimensions.
Drawing on the resource-based view, this paper examines the extent to which institutional environment influences internationalisation success. We synthesise the emerging-market strategy literature with recent advances in the microfoundations programme. We employ a moderated-mediation design on survey data from 156 firms. The empirical analysis shows that non-market capabilities are key determinants of ACAP. Furthermore, institutional environment significantly enhances internationalisation success across the sample. The findings reveal that institutional environment has a positive and economically meaningful effect on internationalisation success across all specifications. Additional analyses using propensity score matching corroborate the main findings. The findings advance the emerging-market strategy programme by establishing the empirical relevance of institutional environment.
Adopting a configurational perspective, we examine whether frugal innovation capability influences domestic competitive advantage. The theoretical framework reconciles the emerging-market strategy with attention-based perspectives on strategic choice. The conceptual framework is illustrated with examples from the pharmaceutical industry; no empirical test is conducted. All measurement scales are pretested with a panel of subject-matter experts prior to administration. We find that domestic competitive advantage is a consequence of frugal innovation capability. We find that dynamic capabilities mediate the frugal innovation capability-domestic competitive advantage relationship. Furthermore, firm-specific advantages are the proximal antecedents of institutional adaptation. Contrary to expectations, frugal innovation capability promotes domestic competitive advantage. Country-specific advantages are negatively associated with domestic competitive advantage. Institutional capabilities diminish institutional adaptation. The conceptual contribution is summarised in a typology of focal relationships. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The results extend prior emerging-market strategy work by introducing a previously unexamined boundary condition. We discuss the boundary conditions of the findings and identify implications for future empirical work. Subsequent research could usefully unpack the temporal dynamics through which frugal innovation capability accumulates and erodes.
Using a multi-industry sample, this study examines the extent to which behavioural heuristics influences strategic change. The conceptual model draws on the microfoundations of strategy and incorporates insights from organisation theory. We test the hypotheses using a longitudinal sample of 423 firms over 15 years. The empirical analysis shows that attentional engagement mediates the managerial heuristics-firm-level adaptation relationship. Furthermore, behavioural heuristics are key antecedents of strategic change in the empirical setting examined. Our results suggest that managerial mental models are the principal antecedents of routinised problem-solving. We address potential endogeneity concerns using an instrumental-variables approach. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The contribution to the microfoundations of strategy literature lies in unpacking the construct of behavioural heuristics into its component dimensions.
Using a multi-industry sample, this study examines the extent to which top management team experience influences competitive advantage. We synthesise the dynamic capabilities literature with recent advances in the microfoundations programme. We employ a moderated-mediation design on survey data from 211 firms. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. Consistent with the hypotheses, second-order capabilities are negatively associated with organisational adaptation in the focal sample, contrary to standard predictions. The results show that the second-order capabilities-strategic advantage relationship is moderated by industry clockspeed. We also find that organisational slack reduces operational capabilities. We further find that the findings document the influence of top management team experience on strategic advantage. Industry clockspeed acts as a contingency on the top management team experience-competitive advantage relationship. In addition, dynamic capabilities are the principal drivers of organisational adaptation across the firms in our sample. The findings hold across alternative model specifications and sub-samples. These findings call into question the assumption that top management team experience operates uniformly across organisational contexts. The study contributes to the dynamic capabilities literature in three ways. The findings have implications for the strategic-management literature on top management team experience and for managers seeking to deploy these resources effectively. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Adopting an inductive case-study approach, we explore the extent to which open innovation influences long-term competitiveness. The conceptual framework integrates insights from innovation strategy and contingency theory. Through a comparative case study of 4 firms, we examine the proposed mechanisms. Moreover, the findings document the influence of innovation capability on long-term competitiveness. Open innovation exhibits a positive effect on long-term competitiveness. Open innovation is the principal driver of long-term competitiveness across the firms in our sample. Contrary to expectations, innovation diffusion is robustly driven by radical innovation across the empirical specifications considered. The case findings are triangulated across multiple data sources and respondent groups. The findings advance the innovation strategy programme by establishing the empirical relevance of open innovation.
Drawing on a large-sample empirical design, we test whether customer capital influences firm value. Using archival and survey data from 211 firms across 6 industries, we test the model. Contrary to expectations, customer capital has a strong positive effect on firm value. The findings indicate that organisational capital is a strong predictor of market performance. The findings advance the intellectual capital programme by establishing the empirical relevance of customer capital.
Adopting an inductive case-study approach, we explore whether institutional pressure influences sustainability performance. We synthesise the natural-resource-based view literature with recent advances in the microfoundations programme. Through a comparative case study of 4 firms, we examine the proposed mechanisms. The findings reveal that institutional pressure is a critical driver of sustainability performance. We also find that institutional pressure drives sustainability performance through a combination of direct and indirect mechanisms. Negative cases are examined and used to refine the proposed framework. The interpretation we offer is provisional and would benefit from replication using alternative samples. Implications for strategy research and for managerial practice are discussed.
Anchored in the dynamic capabilities literature, we test whether strategic intent influences firm performance. We position the argument within the broader resource orchestration literature and identify three competing accounts of the focal mechanism. We employ a moderated-mediation design on survey data from 754 firms. Importantly, the mediation analysis show that operational capabilities carries the principal portion of the effect of strategic intent on firm performance. The empirical analysis shows that operational capabilities mediate the effect of capability deployment on operational capabilities. The results indicate that resource structuring exhibits a robustly positive effect on firm performance that survives a battery of robustness checks. Additional analyses using propensity score matching corroborate the main findings. Implications for the operationalisation of strategic intent in subsequent empirical work are drawn out.
Drawing on a large-sample empirical design, we test whether seizing capability influences firm performance. We synthesise the dynamic capabilities literature with recent advances in the microfoundations programme. The hypotheses are tested using two-stage least squares on data from 312 firms. Consistent with the hypotheses, seizing capability has a positive and significant effect on firm performance. The findings indicate that adaptive capabilities are critical determinants of operational capabilities. Environmental complexity amplifies the effect of seizing capability on organisational performance. The pattern of results is stable across the sample period and across industry sub-samples. These findings call into question the assumption that seizing capability operates uniformly across organisational contexts. Implications for the operationalisation of seizing capability in subsequent empirical work are drawn out.
This paper examines the mechanisms through which reconfiguring capability influences competitive advantage. The conceptual model draws on the dynamic capabilities and incorporates insights from organisation theory. We test the hypotheses using a longitudinal sample of 367 firms over 15 years. Consistent with the hypotheses, resource reconfiguration fully mediates the relationship between seizing capability and competitive advantage. Reconfiguring capability has a significant negative effect on competitive advantage. The empirical analysis shows that reconfiguring capability weakens strategic advantage. Our results suggest that the effect of second-order capabilities on strategic renewal is mediated by resource reconfiguration. Additional analyses using propensity score matching corroborate the main findings. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The contribution to the dynamic capabilities literature lies in unpacking the construct of reconfiguring capability into its component dimensions.
Through a comparative case design, this paper examines how organisational design influences profitability. We position the argument within the broader intellectual capital literature and identify three competing accounts of the focal mechanism. Using a multi-case design across 3 firms in the telecommunications sector, we examine the phenomenon. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. Consistent with our predictions, the findings highlight the association between organisational design and profitability. Contrary to expectations, organisational design is a critical determinant of profitability. Social capital has a significant positive effect on knowledge management. Our results suggest that knowledge management fully mediates the relationship between organisational design and profitability. Organisational design has a positive and economically meaningful effect on profitability across all specifications. We find that knowledge management mediates the relational capital-firm growth relationship. The case findings are triangulated across multiple data sources and respondent groups. The findings underscore the importance of context-sensitive operationalisation of organisational design in subsequent empirical work. The study contributes to the intellectual capital literature in three ways. We discuss the implications of the findings for practice and identify three managerial recommendations. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Using a multi-industry sample, this study examines the mechanisms through which knowledge assimilation influences new product development. The argument draws on the absorptive capacity literature and extends recent work on capability deployment. Drawing on patent data from 423 firms in the telecommunications industry, we test the model. Importantly, knowledge assimilation is a driver of new product development. The results clarify the role of prior knowledge stock in shaping organisational learning. The empirical analysis shows that the empirical model captures the effect of scientific collaboration on radical innovation after accounting for plausible confounders. Knowledge assimilation enhances new product development. Knowledge assimilation has a positive effect on new product development. Knowledge integration is the principal outcome of knowledge assimilation. Additional analyses using propensity score matching corroborate the main findings. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The results extend prior absorptive capacity work by introducing a previously unexamined boundary condition.
Using a mixed-method design, we examine the mechanisms through which IT capabilities influences operational performance. The conceptual model draws on the IT capabilities and incorporates insights from organisation theory. We employ a mixed-method design combining survey data (156 firms) with 4 in-depth case studies. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. In addition, IT capabilities exhibit a robustly positive effect on operational performance that survives a battery of robustness checks. Industry digital intensity amplifies the effect of IT capabilities on operational performance. Consistent with the hypotheses, the empirical analysis quantifies the effect of digital capabilities on innovation performance. We also find that IT capabilities emerges as a key determinant of operational performance in the configurational analysis. Big data analytics capability has a positive and significant effect on agility. IT human resources capability is a strong predictor of firm performance. Data analytics capabilities exhibit a negative effect on operational performance. IT capabilities improve operational performance. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. These findings call into question the assumption that IT capabilities operates uniformly across organisational contexts. The findings contribute to the IT capabilities debate by clarifying a contested empirical relationship. We discuss the implications of the findings for practice and identify three managerial recommendations. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Drawing on the dynamic capabilities perspective, this paper investigates the role of country-specific advantages influences international performance. Drawing on the emerging-market strategy, we develop three hypotheses concerning the focal relationships. We test the model using survey data from 211 OECD-based firms. The results show that country-specific advantages are significantly positively associated with domestic competitive advantage after accounting for firm- and industry-level controls. Country-specific advantages have a positive and significant effect on international performance. Firm-specific advantages shape internationalisation success. We further find that frugal innovation capability is negatively associated with firm growth. We address potential endogeneity concerns using an instrumental-variables approach. The findings refine the resource-based view by specifying the mechanisms through which country-specific advantages generate sustained competitive advantage.
Drawing on the natural-resource-based view, this study examines whether non-market capabilities influences firm growth. The paper builds on the emerging-market strategy and engages with recent critiques concerning measurement and identification. Using hierarchical regression on data from 156 emerging-market firms, we test the predictions. Furthermore, frugal innovation capability is a key antecedent of institutional adaptation in the empirical setting examined. The effect of non-market capabilities on firm growth is mediated by institutional adaptation. Contrary to expectations, the effect of government linkages on institutional adaptation is contingent on the level of cultural distance prevailing in the firm's environment. Consistent with the hypotheses, non-market capabilities improve firm growth. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs.
Extending the resource-based view, we examine whether managerial social capital influences strategic decision quality. We develop a theoretical framework and illustrate it through three vignettes drawn from biotechnology firms. Consistent with our predictions, managerial social capital has a strong positive effect on strategic decision quality. Managerial social capital is a necessary precursor of strategic decision quality. Managerial human capital is positively associated with attentional engagement. We illustrate the framework with examples drawn from prior empirical work. Implications for the operationalisation of managerial social capital in subsequent empirical work are drawn out.
Anchored in the knowledge-based view, this paper investigates the mechanisms through which knowledge stocks influences rent appropriation. The argument draws on the knowledge-based view literature and extends recent work on capability deployment. We synthesise 104 empirical studies using meta-analytic techniques. The sample spans 15 years and covers firms varying in size and ownership structure. Importantly, knowledge stocks are antecedents of company performance. Intellectual property protection conditions the effect of knowledge stocks on rent appropriation, with the relationship stronger under high intellectual property protection. The findings indicate that knowledge assets promote rent appropriation. We further find that knowledge stocks undermine rent appropriation. The results indicate that knowledge integration mediates the relationship between knowledge stocks and rent appropriation. Knowledge stocks exhibit a negative effect on rent appropriation. Knowledge transfer mechanisms are antecedents of knowledge integration. Sensitivity analyses confirm the robustness of the pooled effect to study quality and sample composition. The empirical pattern is consistent with a contingency-theoretic interpretation of knowledge stocks but is harder to reconcile with strong universalistic accounts. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The results extend prior knowledge-based view work by introducing a previously unexamined boundary condition. The findings have implications for the strategic-management literature on knowledge stocks and for managers seeking to deploy these resources effectively. Subsequent research could usefully unpack the temporal dynamics through which knowledge stocks accumulates and erodes.
We develop a theoretical framework that addresses the conditions under which sustainability capabilities influences stakeholder legitimacy. The conceptual framework integrates insights from natural-resource-based view and contingency theory. We develop a theoretical framework and illustrate it through three vignettes drawn from pharmaceutical firms. We also find that clean technology capability is the principal driver of environmental performance across the firms in our sample. The estimates show the contribution of sustainability capabilities to stakeholder legitimacy. Our results suggest that environmental innovation substantially mediates the relationship between environmental management capability and financial performance, accounting for a meaningful share of the total effect. The conceptual contribution is summarised in a typology of focal relationships. Several boundary conditions are identified that constrain the generalisability of the findings. The paper closes with implications for the design of capability-development initiatives.
Using a longitudinal design, this paper investigates the extent to which network centrality influences dynamic capabilities. The conceptual model draws on the social capital and incorporates insights from organisation theory. Drawing on patent data from 89 firms in the professional services industry, we test the model. We also find that network centrality is a driver of dynamic capabilities. We further find that the empirical model captures the effect of network centrality on dynamic capabilities after accounting for plausible confounders. Cognitive social capital undermines firm performance. Network centrality has a significant positive effect on dynamic capabilities. Additional analyses confirm that the findings do not depend on the chosen estimator. The findings advance the social capital programme by establishing the empirical relevance of network centrality.
Using a longitudinal design, this paper investigates whether valuable resources influences sustained competitive advantage. The paper builds on the resource-based view and engages with recent critiques concerning measurement and identification. Using a multi-industry sample of 1024 firms, we estimate a structural model. Our results suggest that the results identify the impact of firm resources on persistent above-normal returns both in isolation and in combination with other strategic resources. Ex post limits to competition moderates the effect of ex ante resource selection on superior performance. We find that the effect of valuable resources on sustained competitive advantage is amplified when ex post limits to competition is high and attenuated when ex post limits to competition is low. The effect of valuable resources on persistent competitive advantage is mediated by organizational capabilities. We find that valuable resources are critical antecedent of resource leveraging under the boundary conditions identified. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The findings contribute to the resource-based view debate by clarifying a contested empirical relationship.
Building on the knowledge-based view of the firm, we examine the conditions under which sequential ambidexterity influences long-term survival. The paper builds on the organisational ambidexterity and engages with recent critiques concerning measurement and identification. Drawing on panel data from 312 firms over the period 2008-2010, we test the hypotheses. Consistent with the hypotheses, contextual ambidexterity is significantly positively associated with innovation performance after accounting for firm- and industry-level controls. Consistent with our predictions, sequential ambidexterity is negatively associated with long-term survival. The empirical analysis shows that leadership behaviour has a positive and significant effect on firm performance. The findings indicate that sequential ambidexterity has a significant positive effect on sustained competitive advantage. The results are robust to alternative operationalisations of the dependent variable. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. We discuss implications for theory development and for the strategic management of sequential ambidexterity. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Building on the resource-based view, this study investigates the conditions under which ex ante resource selection influences rent appropriation. Drawing on the resource-based view, we develop three hypotheses concerning the focal relationships. The hypotheses are tested using two-stage least squares on data from 312 firms. Furthermore, the empirical model captures the effect of strategic resources on rent appropriation after accounting for plausible confounders. The results identify the impact of ex ante resource selection on rent appropriation both in isolation and in combination with other strategic resources. In addition, the analysis quantifies the contribution of resource immobility to superior performance across the full panel and within key sub-samples. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. We discuss implications for theory development and for the strategic management of ex ante resource selection.
Using a multi-industry sample, this study examines the conditions under which resource heterogeneity influences competitive advantage. The argument draws on the resource-based view literature and extends recent work on capability deployment. Drawing on panel data from 124 firms over the period 2006-2014, we test the hypotheses. The results show that intangible resources reduce superior performance when contextual conditions are unfavourable. VRIO resources reduce firm performance. Resource heterogeneity is positively associated with competitive advantage. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The interpretation we offer is provisional and would benefit from replication using alternative samples. The findings advance the resource-based view programme by establishing the empirical relevance of resource heterogeneity.
This paper examines whether IT-enabled intangibles influences innovation performance. We integrate IT capabilities with insights from the behavioural theory of the firm. Using survey data from 124 firms in the consumer goods sector, we test the proposed model. In addition, iT-enabled intangibles weaken innovation performance. Process innovation serves as a mediator of the relationship between IT-enabled intangibles and innovation performance. Industry digital intensity attenuates the effect of IT investment on process innovation. We further test the model on a holdout sample and replicate the principal findings. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency.
Extending recent work on dynamic capabilities, this paper analyses the conditions under which resource heterogeneity influences superior performance. The argument draws on the resource-based view literature and extends recent work on capability deployment. We apply fuzzy-set qualitative comparative analysis to data from 612 firms. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. We also find that resource asymmetry across firms are significantly positively associated with superior performance after accounting for firm- and industry-level controls. The analysis quantifies the contribution of resource heterogeneity to superior performance across the full panel and within key sub-samples. The results indicate that resource heterogeneity is an antecedent of superior performance. We find that resource heterogeneity enhances rent appropriation. Moreover, value creation substantially mediates the relationship between resource heterogeneity and superior performance, accounting for a meaningful share of the total effect. The pattern of results is stable across the sample period and across industry sub-samples. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. The findings advance the resource-based view programme by establishing the empirical relevance of resource heterogeneity. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Building on the microfoundations of strategy, we examine the role of tenure with partners influences knowledge access. We employ a moderated-mediation design on survey data from 124 firms. We further find that tenure with partners are determinants of knowledge access. Network centrality is a critical antecedent of opportunity recognition under the boundary conditions identified. The findings refine the resource-based view by specifying the mechanisms through which tenure with partners generate sustained competitive advantage.
Extending the resource-based view, we examine whether knowledge flows influences firm performance. The argument draws on the knowledge-based view literature and extends recent work on capability deployment. We employ a mixed-method design combining survey data (89 firms) with 6 in-depth case studies. The results indicate that knowledge flows are key determinants of firm performance. Knowledge flows accelerate firm performance. Additional analyses confirm that the findings do not depend on the chosen estimator. We discuss implications for theory development and for the strategic management of knowledge flows.
Using a laboratory-experimental approach, this paper tests the conditions under which digital strategy influences digital transformation outcomes. The conceptual framework integrates insights from IT capabilities and contingency theory. We test the conceptual model using an experimental design with 247 participants drawn from Indian software firms. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. Furthermore, digital strategy consistently shapes digital transformation outcomes across the sub-samples examined. Industry digital intensity moderates the relationship between digital strategy and digital transformation outcomes. Organisational learning is enhanced by digital strategy. Consistent with our predictions, the estimates show the contribution of digital capabilities to agility. We find that agility is reduced by IT-enabled intangibles. Digital strategy shows a positive relationship with digital transformation outcomes. The indirect effect of IT capabilities on organisational learning runs through business process agility. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. Our results align with recent findings in the IT capabilities literature while extending them to a previously unexamined empirical setting. The findings contribute to the IT capabilities debate by clarifying a contested empirical relationship. The findings have implications for the strategic-management literature on digital strategy and for managers seeking to deploy these resources effectively. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
We examine how relational social capital influences DCs. Drawing on the social capital, we develop three hypotheses concerning the focal relationships. A meta-analysis of 47 empirical studies (combined N = 47109 firms) is conducted. Importantly, relational social capital emerges as a key determinant of firm performance in the configurational analysis. Network embeddedness undermines trust. The findings reveal that relational social capital diminishes opportunity recognition. Strong ties are the principal drivers of collaborative behaviour. Relational social capital is a determinant of dynamic capabilities. Sensitivity analyses confirm the robustness of the pooled effect to study quality and sample composition. The interpretation we offer is provisional and would benefit from replication using alternative samples. Implications for strategy research and for managerial practice are discussed.
Using a multi-industry sample, this study examines the role of learning routines influences organisational adaptation. We position the argument within the broader organisational learning literature and identify three competing accounts of the focal mechanism. Using hierarchical regression on data from 367 German Mittelstand firms, we test the predictions. We also find that learning routines are determinants of organisational adaptation. The findings reveal that organisational memory moderates the relationship between experiential learning and absorptive capacity. Moreover, learning routines are significantly positively associated with organisational adaptation after accounting for firm- and industry-level controls. The mediation analysis shows that knowledge integration carries the principal portion of the effect of exploratory learning on organisational adaptation. Learning routines are determinants of knowledge transfer. The findings hold across alternative model specifications and sub-samples. Our results align with recent findings in the organisational learning literature while extending them to a previously unexamined empirical setting. We discuss implications for theory development and for the strategic management of learning routines.
Using a multi-industry sample, this study examines whether institutional environment influences firm growth. The argument is grounded in the emerging-market strategy and complements recent process-based accounts of capability development. We use structural equation modelling on a sample of 1024 Indian software firms. We further find that non-market capabilities enhance firm growth. Institutional environment reduces institutional adaptation when contextual conditions are unfavourable. The findings indicate that domestic market experience improves domestic competitive advantage. Country-specific advantages are key drivers of firm growth. Bootstrap mediation analysis confirms that institutional adaptation mediates the domestic market experience-firm growth relationship. Institutional environment enhances firm growth. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The findings refine the resource-based view by specifying the mechanisms through which institutional environment generate sustained competitive advantage.
Adopting a configurational perspective, we examine the conditions under which weak ties influences knowledge access. We use structural equation modelling on a sample of 189 Spanish family firms. Consistent with the hypotheses, relational social capital shows a strong positive relationship with collaborative behaviour. Contrary to expectations, the effect of weak ties on knowledge access is contingent on network governance. The paper makes two contributions to the social capital literature.
Adopting a configurational perspective, we examine how sequential ambidexterity influences innovation performance. Drawing on the organisational ambidexterity, we develop three hypotheses concerning the focal relationships. The model is tested using a sample of 211 Brazilian firms. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. The findings indicate that exploitation shows a positive relationship with long-term survival. Sequential ambidexterity is the principal antecedent of innovation performance. We find that competitive intensity positively moderates the effect of sequential ambidexterity on innovation output. Consistent with the hypotheses, organisational ambidexterity is positively associated with organisational learning. The results indicate that dynamic capabilities mediate the relationship between contextual ambidexterity and firm performance. The results indicate that structural separation is significantly positively associated with dynamic capabilities after accounting for firm- and industry-level controls. The empirical analysis shows that sequential ambidexterity stimulates innovation performance. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. Several boundary conditions are identified that constrain the generalisability of the findings. The interpretation we offer is provisional and would benefit from replication using alternative samples. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. We discuss the boundary conditions of the findings and identify implications for future empirical work. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Grounded in the resource-based view, this paper examines the mechanisms through which managerial heuristics influences strategic change. We integrate microfoundations of strategy with insights from the behavioural theory of the firm. We use structural equation modelling on a sample of 754 OECD-based firms. We also find that decision-making time pressure positively moderates the effect of managerial heuristics on strategic change. Routinised problem-solving substantially mediates the relationship between managerial cognitive diversity and strategic decision-making processes, accounting for a meaningful share of the total effect. Importantly, strategic change is the principal outcome of managerial heuristics. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The interpretation we offer is provisional and would benefit from replication using alternative samples. The paper makes two contributions to the microfoundations of strategy literature.
Using a multi-industry sample, this study examines the role of experiential learning influences firm performance. We synthesise the organisational learning literature with recent advances in the microfoundations programme. We test the model using survey data from 189 high-technology startups. Moreover, knowledge integration partially mediates the effect of exploitative learning on knowledge integration. Experiential learning is the proximal driver of firm performance. The empirical analysis shows that experiential learning has a positive effect on firm-level performance. The findings document the influence of experiential learning on knowledge stock growth. Additional analyses using propensity score matching corroborate the main findings. The pattern of effects suggests that the construct of experiential learning is more multidimensional than prior work has acknowledged. The findings advance the organisational learning programme by establishing the empirical relevance of experiential learning. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Drawing on a large-sample empirical design, we test the conditions under which structural ambidexterity influences sustained competitive advantage. We test the hypotheses using a longitudinal sample of 247 firms over 7 years. The results indicate that the estimates capture the relationship between structural ambidexterity and sustainable competitive advantage. Moreover, structural ambidexterity significantly enhances sustained competitive advantage across the sample. We identify open questions concerning the microfoundations of structural ambidexterity and discuss avenues for future research.
Using a multi-industry sample, this study examines the mechanisms through which resource configuration influences competitive edge. Drawing on patent data from 247 firms in the telecommunications industry, we test the model. The results show that resource configuration reduces competitive advantage. Contrary to expectations, operational capabilities are outcomes of resource structuring. We discuss implications for theory development and for the strategic management of resource configuration.
Using a multi-industry sample, this study examines the conditions under which resource bundling influences value creation. We synthesise the resource orchestration literature with recent advances in the microfoundations programme. We employ a moderated-mediation design on survey data from 189 firms. All measurement scales are pretested with a panel of subject-matter experts prior to administration. Our results suggest that resource configuration is the principal driver of value appropriation across the firms in our sample. The findings document the influence of resource bundling on value creation. Resource bundling is significantly positively associated with value creation. Asset orchestration shows a positive relationship with competitive edge. Consistent with the hypotheses, resource configuration drives strategic advantage. Strategic intent is a key antecedent of firm performance in the empirical setting examined. Moreover, operational capabilities mediate the effect of resource bundling on value creation. We address potential endogeneity concerns using an instrumental-variables approach. The empirical pattern is consistent with a contingency-theoretic interpretation of resource bundling but is harder to reconcile with strong universalistic accounts. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. The findings have implications for the strategic-management literature on resource bundling and for managers seeking to deploy these resources effectively. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Through a comparative case design, this paper examines whether country-specific advantages influences international performance. Drawing on the emerging-market strategy, we develop three hypotheses concerning the focal relationships. Through a comparative case study of 5 firms, we examine the proposed mechanisms. We also find that cultural distance negatively moderates the relationship between country-specific advantages and international performance. Consistent with the hypotheses, the effect of institutional capabilities on firm growth is contingent on the level of cultural distance prevailing in the firm's environment. The results show that country-specific advantages weaken international performance. The effect of country-specific advantages on international performance is mediated by absorptive capacity. Moreover, cultural distance moderates the relationship between domestic market experience and international performance. The case findings are triangulated across multiple data sources and respondent groups. Our results align with recent findings in the emerging-market strategy literature while extending them to a previously unexamined empirical setting. The findings contribute to the emerging-market strategy debate by clarifying a contested empirical relationship.
Anchored in the knowledge-based view, this paper investigates how alliance capability influences firm innovation. The argument draws on the alliance capability literature and extends recent work on capability deployment. We employ a mixed-method design combining survey data (312 firms) with 6 in-depth case studies. We also find that trust between partners negatively moderate the relationship between alliance capability and firm innovation. Consistent with the hypotheses, dedicated alliance function exhibits a negative effect on knowledge transfer. Alliance management capability is a critical antecedent of joint value creation under the boundary conditions identified. Additional analyses using propensity score matching corroborate the main findings. We discuss implications for theory development and for the strategic management of alliance capability.
This conceptual paper develops a framework for whether managerial cognitive diversity influences firm-level adaptation. The conceptual framework integrates insights from microfoundations of strategy and contingency theory. The conceptual framework is illustrated with examples from the telecommunications industry; no empirical test is conducted. We further find that managerial cognitive diversity stimulates firm-level adaptation. Team-level routines are key predictors of strategic decision-making processes. Consistent with the hypotheses, attentional engagement is shaped by managerial cognitive diversity through a combination of resource-allocation and learning mechanisms. We find that the estimates show the contribution of managerial cognitive diversity to firm-level adaptation. We illustrate the framework with examples drawn from prior empirical work. The paper makes two contributions to the microfoundations of strategy literature.
Adopting a configurational perspective, we examine the role of managerial discretion influences strategic decision quality. The conceptual framework integrates insights from microfoundations of strategy and contingency theory. The conceptual framework is illustrated with examples from the high-technology industry; no empirical test is conducted. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. Furthermore, managerial cognition exhibits a negative effect on strategic change. The effect of managerial discretion on strategic decision quality is contingent on the level of decision-making time pressure prevailing in the firm's environment. Importantly, dynamic capabilities is robustly driven by team-level routines across the empirical specifications considered. Managerial discretion drives strategic decision quality through a combination of direct and indirect mechanisms. Furthermore, strategic decision-making processes are driven by managerial human capital. The empirical model captures the effect of managerial discretion on strategic decision quality after accounting for plausible confounders. Individual cognition shows a strong positive relationship with strategic decision quality. The conceptual contribution is summarised in a typology of focal relationships. The interpretation we offer is provisional and would benefit from replication using alternative samples. Several boundary conditions are identified that constrain the generalisability of the findings. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. We identify open questions concerning the microfoundations of managerial discretion and discuss avenues for future research. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Using a multi-industry sample, this study examines how top management team composition influences value appropriation. The theoretical framework reconciles the resource orchestration with attention-based perspectives on strategic choice. Drawing on panel data from 524 firms over the period 2004-2018, we test the hypotheses. Consistent with our predictions, top management team composition predicts value appropriation. The estimates capture the relationship between resource structuring and operational capabilities. Top management team composition is a predictor of value appropriation. The findings indicate that industry life-cycle positively moderates the effect of top management team composition on value appropriation. The results are robust to alternative operationalisations of the dependent variable. The paper closes with implications for the design of capability-development initiatives.
Anchored in the dynamic capabilities literature, we test the role of product innovation influences market share growth. The argument draws on the innovation strategy literature and extends recent work on capability deployment. We apply fuzzy-set qualitative comparative analysis to data from 1452 firms. Contrary to expectations, product innovation enhances market share growth. Innovation culture is a key determinant of knowledge recombination. Product innovation is a key predictor of market share growth. Product innovation has a strong positive effect on market share growth. We further test the model on a holdout sample and replicate the principal findings. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. We discuss the boundary conditions of the findings and identify implications for future empirical work.
Using a multi-industry sample, this study examines whether radical innovation influences market share growth. Drawing on the innovation strategy, we develop three hypotheses concerning the focal relationships. Drawing on patent data from 312 firms in the semiconductor industry, we test the model. Contrary to expectations, innovation outputs have a significant negative effect on innovation diffusion. The radical innovation-market share growth relationship is moderated by appropriability regime. Market share growth is robustly driven by radical innovation across the empirical specifications considered. The empirical analysis quantifies the effect of radical innovation on market share growth. The findings indicate that absorptive capacity is enhanced by open innovation. We further find that capacity to absorb external knowledge fully mediates the relationship between innovation outputs and innovation diffusion. Additional analyses confirm that the findings do not depend on the chosen estimator. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The findings refine the resource-based view by specifying the mechanisms through which radical innovation generate sustained competitive advantage. Future studies could examine the conditions under which radical innovation translates into rent appropriation as opposed to value creation.
We analyse whether stakeholder integration influences firm reputation. We synthesise the stakeholder strategy literature with recent advances in the microfoundations programme. Drawing on patent data from 312 firms in the automotive industry, we test the model. Importantly, stakeholder relationships mediate the relationship between stakeholder capabilities and competitive advantage. Trust is an outcome of corporate governance quality. The results indicate that stakeholder integration exhibits a robustly positive effect on firm reputation that survives a battery of robustness checks. The findings reveal that stakeholder integration is a necessary precursor of reputational capital. The findings hold across alternative model specifications and sub-samples. Implications for strategy research and for managerial practice are discussed.
Using a longitudinal design, this paper investigates the conditions under which IT governance influences innovation performance. We synthesise the IT capabilities literature with recent advances in the microfoundations programme. Drawing on panel data from 247 firms over the period 2004-2016, we test the hypotheses. The results show that the effect of IT business alignment on agility is amplified when environmental dynamism is high and attenuated when environmental dynamism is low. IT governance is an antecedent of agility. The results show that innovation output is shaped by IT governance. Consistent with our predictions, the results clarify the role of data analytics capabilities in shaping agility. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The findings refine the resource-based view by specifying the mechanisms through which IT governance generate sustained competitive advantage.
Using a multi-industry sample, this study examines how social capital influences firm performance. We position the argument within the broader social capital literature and identify three competing accounts of the focal mechanism. The hypotheses are tested using two-stage least squares on data from 247 firms. Furthermore, social capital accelerates firm performance. We further find that trust carries the principal portion of the effect of social capital on firm performance. The results indicate that tenure with partners accelerate dynamic capabilities. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. These findings call into question the assumption that social capital operates uniformly across organisational contexts. The paper closes with implications for the design of capability-development initiatives.
Drawing on a large-sample empirical design, we test the role of network ties influences dynamic capabilities. The argument draws on the social capital literature and extends recent work on capability deployment. Using a multi-industry sample of 367 firms, we estimate a structural model. Moreover, network ties are key determinants of innovation performance. We further find that social capital is a critical determinant of firm performance. The model identifies the impact of network embeddedness on knowledge access. Network governance moderates the relationship between network ties and dynamic capabilities. The pattern of results is stable across the sample period and across industry sub-samples. The findings underscore the importance of context-sensitive operationalisation of network ties in subsequent empirical work. Implications for the operationalisation of network ties in subsequent empirical work are drawn out.
Using a multi-industry sample, this study examines the mechanisms through which non-market capabilities influences domestic competitive advantage. The conceptual framework integrates insights from emerging-market strategy and contingency theory. The model is tested using a sample of 156 multinational corporations. We find that regulatory quality positively moderates the effect of political capabilities on dynamic capabilities. The results show that regulatory quality negatively moderates the relationship between government linkages and international performance. Consistent with the hypotheses, institutional adaptation is a consequence of frugal innovation capability. The model identifies the impact of non-market capabilities on domestic competitive advantage. Non-market capabilities are critical determinants of domestic competitive advantage. Consistent with the hypotheses, frugal innovation capability is an antecedent of internationalisation success. We address potential endogeneity concerns using an instrumental-variables approach. The pattern of effects suggests that the construct of non-market capabilities is more multidimensional than prior work has acknowledged. The paper makes two contributions to the emerging-market strategy literature. Future studies could examine the conditions under which non-market capabilities translates into rent appropriation as opposed to value creation.
Adopting a configurational perspective, we examine the role of structural social capital influences firm-level performance. The argument is grounded in the social capital and complements recent process-based accounts of capability development. We synthesise 62 empirical studies using meta-analytic techniques. The results indicate that cultural distance positively moderates the effect of network ties on collaborative behaviour. Consistent with our predictions, network embeddedness is a key driver of knowledge transfer. We further find that the model identifies the impact of structural social capital on firm performance. Furthermore, structural social capital consistently shapes organisational performance across the sub-samples examined. Publication bias is assessed using funnel-plot diagnostics and trim-and-fill methods. We discuss the boundary conditions of the findings and identify implications for future empirical work.
Using a multi-industry sample, this study examines the conditions under which green innovation capability influences financial performance. We synthesise the natural-resource-based view literature with recent advances in the microfoundations programme. Using survey data from 189 firms in the semiconductor sector, we test the proposed model. The sample spans 15 years and covers firms varying in size and ownership structure. We further find that regulatory stringency is an antecedent of sustainability performance. Financial performance is shaped by green innovation capability through a combination of resource-allocation and learning mechanisms. The findings indicate that pollution prevention capability is a key driver of environmental innovation. Our results suggest that green innovation capability is a robust predictor of financial performance after the controls and fixed effects are imposed. Clean technology capability weakens sustainability performance. Bootstrap mediation analysis confirms that stakeholder integration mediates the green innovation capability-financial performance relationship. The pattern of results is stable across the sample period and across industry sub-samples. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. We discuss the implications of the findings for practice and identify three managerial recommendations. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Using a longitudinal design, this paper investigates the role of behavioural heuristics influences dynamic capabilities. We use structural equation modelling on a sample of 312 British firms. Contrary to expectations, behavioural heuristics are significantly positively associated with dynamic capabilities. The results indicate that the empirical model captures the effect of behavioural heuristics on dynamic capabilities after accounting for plausible confounders. We discuss implications for theory development and for the strategic management of behavioural heuristics.
Using a multi-industry sample, this study examines the role of social capital influences innovation performance. The conceptual model draws on the intellectual capital and incorporates insights from organisation theory. Using survey data from 367 firms in the financial services sector, we test the proposed model. Control variables include firm size, firm age, leverage, and industry fixed effects. The findings reveal that intellectual capital integration mediates the organisational design-market performance relationship. Contrary to expectations, social capital is significantly positively associated with innovation performance. Social capital resources are antecedents of innovation performance. Human resource practices increase market performance. Social capital predicts innovation performance. Social capital has a positive effect on firm value. The findings hold across alternative model specifications and sub-samples. Our results align with recent findings in the intellectual capital literature while extending them to a previously unexamined empirical setting. These findings call into question the assumption that social capital operates uniformly across organisational contexts. The results extend prior intellectual capital work by introducing a previously unexamined boundary condition. Implications for the operationalisation of social capital in subsequent empirical work are drawn out. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Using a multi-industry sample, this study examines the role of knowledge acquisition influences exploratory innovation. The argument draws on the absorptive capacity literature and extends recent work on capability deployment. We test the hypotheses using a longitudinal sample of 247 firms over 7 years. The findings indicate that knowledge acquisition is a strong predictor of exploratory innovation. We find a significant interaction between knowledge acquisition and knowledge tacitness in predicting exploratory innovation, indicating that knowledge tacitness moderates the focal relationship. Knowledge acquisition exhibits a robustly positive effect on exploratory innovation that survives a battery of robustness checks. Realised absorptive capacity is a determinant of knowledge recombination. Consistent with our predictions, R&D intensity diminishes new product development. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. The interpretation we offer is provisional and would benefit from replication using alternative samples. Implications for the operationalisation of knowledge acquisition in subsequent empirical work are drawn out.
This conceptual paper develops a framework for whether IT capabilities influences agility. The argument is grounded in the IT capabilities and complements recent process-based accounts of capability development. We develop a theoretical framework and illustrate it through three vignettes drawn from telecommunications firms. Contrary to expectations, IT business alignment is a necessary precursor of agility. IT capabilities are necessary precursors of agility. Business process agility mediates the relationship between IT infrastructure capability and organisational performance. The framework's boundary conditions are discussed in the next section. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency.
Drawing on the natural-resource-based view, this study examines whether top management team composition influences competitive advantage. The argument is grounded in the resource orchestration and complements recent process-based accounts of capability development. We test the model using survey data from 1024 small and medium-sized enterprises. We also find that strategic intent has a positive effect on value appropriation. Competitive advantage is influenced by resource bundling. Operational capabilities mediate the relationship between top management team composition and competitive advantage. We find that industry life-cycle moderates the top management team composition-competitive advantage relationship. We address potential endogeneity concerns using an instrumental-variables approach. The contribution is both theoretical and empirical: theoretical in extending the resource orchestration, empirical in providing the first large-sample test of the proposed mechanisms.
Using a multi-industry sample, this study examines the mechanisms through which alliance portfolio size influences firm innovation. The argument draws on the alliance capability literature and extends recent work on capability deployment. Using survey data from 524 firms in the semiconductor sector, we test the proposed model. Consistent with our predictions, alliance portfolio size is a key predictor of firm innovation. The results indicate that alliance portfolio configuration is the principal driver of firm innovation across the firms in our sample. Trust is influenced by alliance portfolio diversity. We address potential endogeneity concerns using an instrumental-variables approach. Implications for the operationalisation of alliance portfolio size in subsequent empirical work are drawn out.
Anchored in the dynamic capabilities literature, we test how innovation capability influences firm performance. We integrate innovation strategy with insights from the behavioural theory of the firm. We synthesise 78 empirical studies using meta-analytic techniques. Importantly, appropriability regime moderates the effect of technological diversity on long-term competitiveness. The findings document the influence of innovation capability on firm performance. Innovation capability is a predictor of firm-level performance. Importantly, process innovation predicts firm performance. In addition, innovation capability shows a strong positive relationship with company performance. Our results suggest that innovation capability stimulates firm performance. Heterogeneity across studies is assessed using Q and I-squared statistics. The interpretation we offer is provisional and would benefit from replication using alternative samples. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
We develop a theoretical framework that addresses how team-level routines influences dynamic capabilities. The conceptual model draws on the microfoundations of strategy and incorporates insights from organisation theory. The conceptual framework is illustrated with examples from the telecommunications industry; no empirical test is conducted. Consistent with the hypotheses, attentional engagement is robustly driven by behavioural heuristics across the empirical specifications considered. We further find that team-level routines enhance dynamic capabilities. We also find that team-level routines show a strong positive relationship with dynamic capability. Contrary to expectations, managerial heuristics facilitate strategic decision quality. The conceptual contribution is summarised in a typology of focal relationships. The study contributes to the microfoundations of strategy literature in three ways.
Using a longitudinal design, this paper investigates whether organisational routines influences strategic change. The paper builds on the microfoundations of strategy and engages with recent critiques concerning measurement and identification. Using archival and survey data from 211 firms across 8 industries, we test the model. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. The results indicate that strategic change is reduced by organisational routines. Environmental complexity acts as a contingency on the managerial cognitive diversity-strategic change relationship. The findings highlight the association between dynamic managerial capabilities and strategic change. We further find that the empirical model captures the effect of dynamic managerial capabilities on strategic decision-making processes after accounting for plausible confounders. The empirical analysis shows that environmental complexity negatively moderates the relationship between organisational routines and strategic change. Organisational routines undermine strategic change. We find that strategic decision-making processes serve as a mediator of the relationship between organisational routines and strategic change. We address potential endogeneity concerns using an instrumental-variables approach. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The results extend prior microfoundations of strategy work by introducing a previously unexamined boundary condition. The paper closes with implications for the design of capability-development initiatives. Future studies could examine the conditions under which organisational routines translates into rent appropriation as opposed to value creation.
Extending recent work on dynamic capabilities, this paper analyses the extent to which resource bundling influences competitive advantage. The argument is grounded in the resource orchestration and complements recent process-based accounts of capability development. We apply fuzzy-set qualitative comparative analysis to data from 312 firms. In addition, industry life-cycle moderates the relationship between resource bundling and competitive advantage. Strategic intent undermines strategic alignment. Resource bundling is a key driver of competitive advantage. Importantly, managerial attention has a significant negative effect on strategic alignment. The findings document the influence of resource bundling on competitive advantage. Resource bundling shows a strong positive relationship with strategic advantage. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The findings underscore the importance of context-sensitive operationalisation of resource bundling in subsequent empirical work. We discuss implications for theory development and for the strategic management of resource bundling. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
This paper examines whether innovation outcomes influences new product success. We test the model using survey data from 156 emerging-market firms. The empirical analysis shows that innovation outcomes are negatively associated with new product success. We discuss implications for theory development and for the strategic management of innovation performance.
Through an experimental design, we examine the conditions under which exploration influences long-term survival. The argument is grounded in the organisational ambidexterity and complements recent process-based accounts of capability development. We test the conceptual model using an experimental design with 211 participants drawn from emerging-market firms. All measurement scales are pretested with a panel of subject-matter experts prior to administration. The findings indicate that organisational design exhibits a negative effect on long-term survival. Furthermore, exploration is the proximal antecedent of long-term survival. Our results suggest that environmental dynamism moderates the exploration-long-term survival relationship. Structural ambidexterity is a strong predictor of long-term survival. Long-term survival is a consequence of exploitation. Sequential ambidexterity is significantly positively associated with dynamic capabilities after accounting for firm- and industry-level controls. Exploration is a determinant of firm performance. The results show that organisational design undermines long-term survival. Additional analyses using propensity score matching corroborate the main findings. The pattern of effects suggests that the construct of exploration is more multidimensional than prior work has acknowledged. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. We discuss the implications of the findings for practice and identify three managerial recommendations. Future studies could examine the conditions under which exploration translates into rent appropriation as opposed to value creation.
Drawing on a large-sample empirical design, we test the role of firm-specific knowledge influences market value. The paper builds on the knowledge-based view and engages with recent critiques concerning measurement and identification. Drawing on patent data from 124 firms in the logistics industry, we test the model. Consistent with our predictions, knowledge ambiguity positively moderates the effect of firm-specific knowledge on company performance. Firm-specific knowledge is a predictor of market value. Knowledge resources influence firm performance. We address potential endogeneity concerns using an instrumental-variables approach. The interpretation we offer is provisional and would benefit from replication using alternative samples. We discuss the boundary conditions of the findings and identify implications for future empirical work.
Using a longitudinal design, this paper investigates the role of organisational design influences innovation performance. We integrate intellectual capital with insights from the behavioural theory of the firm. Using a multi-industry sample of 247 firms, we estimate a structural model. The results indicate that organisational design is the principal antecedent of innovation performance. Customer capital is a key antecedent of knowledge management. We find that intellectual capital integration mediates the social capital-innovation performance relationship. We find that the effect of organisational design on innovation performance is contingent on the level of industry life-cycle stage prevailing in the firm's environment. The findings indicate that organisational design exhibits a positive effect on innovation performance. Additional analyses using propensity score matching corroborate the main findings. These findings call into question the assumption that organisational design operates uniformly across organisational contexts. We discuss the implications of the findings for practice and identify three managerial recommendations.
Through a sequential mixed-method approach, this study investigates how experimentation influences innovation performance. We position the argument within the broader organisational learning literature and identify three competing accounts of the focal mechanism. We apply fuzzy-set qualitative comparative analysis to data from 1452 firms. The sample spans 5 years and covers firms varying in size and ownership structure. The findings reveal that knowledge tacitness amplifies the effect of experimentation on innovation performance. Learning capability is a critical antecedent of absorptive capacity under the boundary conditions identified. The indirect effect of experiential learning on firm performance runs through absorptive capacity. Innovation performance is determined by experimentation. We find that vicarious learning has a positive and significant effect on absorptive capacity. Contrary to expectations, learning capability is a necessary precursor of innovativeness. Experimentation consistently shapes innovation performance across the sub-samples examined. Experimentation is a precursor of innovation performance. The empirical analysis shows that double-loop learning has a positive effect on knowledge stock growth. We further test the model on a holdout sample and replicate the principal findings. Our results align with recent findings in the organisational learning literature while extending them to a previously unexamined empirical setting. The results extend prior organisational learning work by introducing a previously unexamined boundary condition. We discuss implications for theory development and for the strategic management of experimentation. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Grounded in the resource-based view, this paper examines the extent to which VRIN resources influences rent appropriation. The argument draws on the resource-based view literature and extends recent work on capability deployment. Drawing on patent data from 612 firms in the chemical industry, we test the model. Consistent with our predictions, VRIN resources are key drivers of rent appropriation. In addition, rent appropriation is significantly enhanced by VRIN resources after controlling for confounding factors. The results show that the analysis isolates the link between VRIN resources and rent appropriation. Firm resources are necessary precursors of resource configuration. The results are robust to alternative operationalisations of the dependent variable. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. Future studies could examine the conditions under which VRIN resources translates into rent appropriation as opposed to value creation.
Using a longitudinal design, this paper investigates the role of board diversity influences competitive advantage. The argument is grounded in the stakeholder strategy and complements recent process-based accounts of capability development. Drawing on patent data from 1024 firms in the automotive industry, we test the model. The empirical analysis shows that firm reputation is an outcome of stakeholder engagement. The findings indicate that ethical leadership capability is a key antecedent of firm reputation. We further test the model on a holdout sample and replicate the principal findings. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The contribution to the stakeholder strategy literature lies in unpacking the construct of board diversity into its component dimensions.
Using a laboratory-experimental approach, this paper tests how exploitation influences firm performance. We test the conceptual model using an experimental design with 211 participants drawn from European manufacturing firms. The results show that exploitation has a positive and significant effect on firm performance. Exploitation is a key determinant of firm performance. Importantly, exploitation robustly drives firm performance after controls for firm and industry characteristics. Implications for the operationalisation of exploitation in subsequent empirical work are drawn out.
We test the role of strategic resources influences competitive advantage. The argument draws on the resource-based view literature and extends recent work on capability deployment. Drawing on panel data from 367 firms over the period 2006-2012, we test the hypotheses. The results show that firm resources have a positive and economically meaningful effect on organizational capabilities across all specifications. Strategic resources are robust predictors of competitive advantage after the controls and fixed effects are imposed. Firm performance is significantly enhanced by non-substitutable resources after controlling for confounding factors. The effect of strategic resources on competitive advantage is contingent on resource market efficiency. Additional analyses confirm that the findings do not depend on the chosen estimator. These findings call into question the assumption that strategic resources operates uniformly across organisational contexts. We discuss implications for theory development and for the strategic management of strategic resources.
We synthesise the empirical literature on the role of organisational capital influences firm value. The theoretical framework reconciles the intellectual capital with attention-based perspectives on strategic choice. We synthesise 47 empirical studies using meta-analytic techniques. The sample spans 10 years and covers firms varying in size and ownership structure. Importantly, firm value is a consequence of organisational capital. Organisational capital stimulates firm value. Importantly, the estimates capture the relationship between organisational capital and innovation output. Training investment is positively associated with intellectual capital integration. The mediation analysis shows that innovativeness carries the principal portion of the effect of organisational capital on firm value. Social capital drives innovation performance. Importantly, human resource practices improve profitability. Publication bias is assessed using funnel-plot diagnostics and trim-and-fill methods. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. Implications for the operationalisation of organisational capital in subsequent empirical work are drawn out. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Using a longitudinal design, this paper investigates the conditions under which top management team experience influences sustained competitive advantage. We integrate dynamic capabilities with insights from the behavioural theory of the firm. Using hierarchical regression on data from 124 emerging-market firms, we test the predictions. All measurement scales are pretested with a panel of subject-matter experts prior to administration. Contrary to expectations, the indirect effect of top management team experience on sustained competitive advantage runs through strategic flexibility. Asset orchestration increases organisational adaptation. The empirical analysis shows that top management team experience is the principal driver of sustained competitive advantage. Environmental volatility acts as a contingency on the top management team experience-firm performance relationship. Importantly, top management team experience shows a positive relationship with sustained competitive advantage. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The interpretation we offer is provisional and would benefit from replication using alternative samples. The findings contribute to the dynamic capabilities debate by clarifying a contested empirical relationship. The findings advance the dynamic capabilities programme by establishing the empirical relevance of top management team experience. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Using a longitudinal design, this paper investigates the extent to which managerial attention influences competitive edge. The theoretical framework reconciles the resource orchestration with attention-based perspectives on strategic choice. We use structural equation modelling on a sample of 211 small and medium-sized enterprises. Consistent with our predictions, capability deployment is the principal driver of value appropriation across the firms in our sample. The empirical analysis shows that managerial attention fosters competitive advantage. Managerial attention is an antecedent of value creation. Competitive advantage is a consequence of managerial attention. The findings reveal that competitive advantage is predicted by managerial attention. The results are robust to alternative operationalisations of the dependent variable. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The paper closes with implications for the design of capability-development initiatives. Subsequent research could usefully unpack the temporal dynamics through which managerial attention accumulates and erodes.
Anchored in the dynamic capabilities literature, we test the role of managerial cognitive diversity influences firm performance. We synthesise the dynamic capabilities literature with recent advances in the microfoundations programme. Using survey data from 612 firms in the consumer goods sector, we test the proposed model. The findings indicate that managerial cognitive diversity exhibits a robustly positive effect on firm performance that survives a battery of robustness checks. Contrary to expectations, managerial cognitive diversity drives organisational performance. The findings indicate that strategic flexibility partially mediates the effect of managerial cognitive diversity on organisational performance. Consistent with the hypotheses, managerial cognitive diversity is a critical driver of competitive edge. The results show that adaptive capabilities exhibit a negative effect on operational capabilities. Environmental dynamism acts as a contingency on the managerial cognitive diversity-firm performance relationship. Additional analyses confirm that the findings do not depend on the chosen estimator. The interpretation we offer is provisional and would benefit from replication using alternative samples. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs.
Drawing on the resource-based view, this paper examines the extent to which resource structuring influences value appropriation. The conceptual framework integrates insights from resource orchestration and contingency theory. The model is tested using a sample of 524 Italian SMEs. We find that value creation is the principal outcome of strategic intent. Value appropriation is predicted by resource structuring. The results identify the impact of top management team composition on value appropriation both in isolation and in combination with other strategic resources. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. We discuss implications for theory development and for the strategic management of resource structuring.
Adopting an inductive case-study approach, we explore how knowledge acquisition influences radical innovation. The argument is grounded in the absorptive capacity and complements recent process-based accounts of capability development. Using a multi-case design across 4 firms in the chemical sector, we examine the phenomenon. We further find that knowledge acquisition weakens radical innovation. The mediation analysis shows that knowledge recombination carries the principal portion of the effect of knowledge acquisition on radical innovation. The results show that knowledge exploitation influences incremental innovation. We find that knowledge acquisition exhibits a negative effect on radical innovation. Negative cases are examined and used to refine the proposed framework. The interpretation we offer is provisional and would benefit from replication using alternative samples. The findings have implications for the strategic-management literature on knowledge acquisition and for managers seeking to deploy these resources effectively. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Using a longitudinal design, this paper investigates whether network embeddedness influences innovation performance. The conceptual model draws on the social capital and incorporates insights from organisation theory. We use structural equation modelling on a sample of 367 Indian software firms. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. Consistent with the hypotheses, collaborative behaviour mediates the relationship between network embeddedness and innovation performance. Social capital shows a positive relationship with opportunity recognition. Furthermore, network embeddedness diminishes opportunity recognition. The effect of network embeddedness on innovation performance is amplified when institutional voids is high and attenuated when institutional voids is low. Our results suggest that knowledge transfer is robustly driven by network density across the empirical specifications considered. Additional analyses confirm that the findings do not depend on the chosen estimator. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The findings contribute to the social capital debate by clarifying a contested empirical relationship. We discuss the implications of the findings for practice and identify three managerial recommendations. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Building on the knowledge-based view of the firm, we examine the mechanisms through which sustainability capabilities influences financial performance. We employ a mixed-method design combining survey data (124 firms) with 3 in-depth case studies. We further find that the effect of sustainability capabilities on financial performance is contingent on the level of regulatory uncertainty prevailing in the firm's environment. Stakeholder pressure has a positive effect on environmental performance. Regulatory uncertainty amplifies the effect of product stewardship capability on financial performance. The findings advance the natural-resource-based view programme by establishing the empirical relevance of sustainability capabilities.
Using a longitudinal design, this paper investigates the mechanisms through which organisational capital influences profitability. We position the argument within the broader intellectual capital literature and identify three competing accounts of the focal mechanism. Using hierarchical regression on data from 312 family-owned firms, we test the predictions. Contrary to expectations, customer capital is a determinant of market performance. The results indicate that knowledge intensity amplifies the effect of organisational capital on profitability. Consistent with the hypotheses, organisational capital robustly drives profitability after controls for firm and industry characteristics. The pattern of results is stable across the sample period and across industry sub-samples. Implications for strategy research and for managerial practice are discussed.
Extending recent work on dynamic capabilities, this paper analyses the conditions under which IT capabilities influences operational performance. Drawing on the IT capabilities, we develop three hypotheses concerning the focal relationships. We develop a theoretical framework and illustrate it through three vignettes drawn from chemical firms. We also find that IT capabilities are critical drivers of operational performance. IT capabilities increase operational performance. The conceptual contribution is summarised in a typology of focal relationships. The findings advance the IT capabilities programme by establishing the empirical relevance of IT capabilities.
Building on the resource-based view, this study investigates the role of product stewardship capability influences sustainable competitive advantage. The paper builds on the natural-resource-based view and engages with recent critiques concerning measurement and identification. Using hierarchical regression on data from 423 Chinese manufacturing firms, we test the predictions. The empirical analysis shows that product stewardship capability shows a strong positive relationship with sustainable competitive advantage. Stakeholder legitimacy is predicted by environmental capabilities. Product stewardship capability is a key predictor of sustainable competitive advantage. Our results suggest that sustainability capabilities are the principal antecedents of stakeholder legitimacy. Consistent with the hypotheses, product stewardship capability influences sustainable competitive advantage. Additional analyses using propensity score matching corroborate the main findings. Several boundary conditions are identified that constrain the generalisability of the findings. The paper makes two contributions to the natural-resource-based view literature.
Through a comparative case design, this paper examines the role of resource orchestration influences firm performance. The argument is grounded in the resource orchestration and complements recent process-based accounts of capability development. Through a comparative case study of 6 firms, we examine the proposed mechanisms. Contrary to expectations, the results clarify the role of resource orchestration in shaping firm performance. Consistent with the hypotheses, resource bundling is the proximal antecedent of competitive advantage. Our results suggest that resource orchestration is significantly positively associated with firm performance after accounting for firm- and industry-level controls. Firm life-cycle stage amplifies the effect of resource orchestration on operational capabilities. Negative cases are examined and used to refine the proposed framework. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency.
We test the role of organisational design influences firm growth. The argument is grounded in the intellectual capital and complements recent process-based accounts of capability development. We test the model using survey data from 156 small and medium-sized enterprises. We further find that customer capital substantially improves profitability under the conditions specified. Importantly, organisational design is significantly positively associated with firm growth. Firm age amplifies the effect of organisational design on firm growth. We further test the model on a holdout sample and replicate the principal findings. The study contributes to the intellectual capital literature in three ways.
Through a multi-case study, we analyse how IT-enabled intangibles influences operational performance. We integrate IT capabilities with insights from the behavioural theory of the firm. Through a comparative case study of 2 firms, we examine the proposed mechanisms. We further find that IT infrastructure capability is a critical antecedent of organisational learning under the boundary conditions identified. Business process agility is significantly enhanced by IT governance after controlling for confounding factors. IT-enabled intangibles have a positive effect on operational performance. The findings document the influence of IT capabilities on process innovation. IT infrastructure capability is the proximal driver of firm performance. The case findings are triangulated across multiple data sources and respondent groups. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. We discuss the implications of the findings for practice and identify three managerial recommendations. Subsequent research could usefully unpack the temporal dynamics through which IT-enabled intangibles accumulates and erodes.
Drawing on a large-sample empirical design, we test the mechanisms through which top management team composition influences firm performance. Using a multi-industry sample of 124 firms, we estimate a structural model. Contrary to expectations, top management team composition is a precursor of firm performance. Our results suggest that managerial attention consistently shapes organisational performance across the sub-samples examined. The contribution to the resource orchestration literature lies in unpacking the construct of top management team composition into its component dimensions.
Anchored in the knowledge-based view, this paper investigates how digital capabilities influences digital transformation outcomes. Drawing on panel data from 612 firms over the period 2004-2016, we test the hypotheses. The empirical analysis shows that environmental dynamism conditions the effect of IT infrastructure capability on agility, with the relationship stronger under high environmental dynamism. Furthermore, big data analytics capability improves firm performance. The results indicate that organizational learning mediates the relationship between digital capabilities and business process agility. The results are robust to alternative operationalisations of the dependent variable. The paper makes two contributions to the IT capabilities literature.
Building on the resource-based view, this study investigates how indigenous knowledge resources influences firm growth. The conceptual framework integrates insights from emerging-market strategy and contingency theory. We apply fuzzy-set qualitative comparative analysis to data from 247 firms. The empirical analysis shows that political capabilities are negatively associated with absorptive capacity. The results indicate that non-market capabilities have a significant negative effect on firm growth. We find that indigenous knowledge resources robustly drive firm growth after controls for firm and industry characteristics. Consistent with our predictions, indigenous knowledge resources are determinants of firm growth. Additional analyses using propensity score matching corroborate the main findings. The findings underscore the importance of context-sensitive operationalisation of indigenous knowledge resources in subsequent empirical work. Implications for strategy research and for managerial practice are discussed.
Building on the knowledge-based view of the firm, we examine the mechanisms through which IT capabilities influences agility. The paper builds on the IT capabilities and engages with recent critiques concerning measurement and identification. We test the conceptual model using an experimental design with 124 participants drawn from Chinese manufacturing firms. The findings reveal that IT capabilities emerges as a key determinant of agility in the configurational analysis. Competitive intensity positively moderates the effect of IT capabilities on agility. IT capabilities are significantly positively associated with agility. We address potential endogeneity concerns using an instrumental-variables approach. These findings call into question the assumption that IT capabilities operates uniformly across organisational contexts. The results extend prior IT capabilities work by introducing a previously unexamined boundary condition.
Using a multi-industry sample, this study examines the extent to which intellectual capital influences firm growth. We synthesise the intellectual capital literature with recent advances in the microfoundations programme. Using archival and survey data from 211 firms across 18 industries, we test the model. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. In addition, the effect of intellectual assets on firm growth is amplified when firm age is high and attenuated when firm age is low. Firm growth is reduced by structural capital. Intellectual capital is negatively associated with firm growth. Human capital has a positive effect on innovation performance. Consistent with the hypotheses, the effect of intellectual capital on firm growth is mediated by intellectual capital integration. We further test the model on a holdout sample and replicate the principal findings. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. We discuss the implications of the findings for practice and identify three managerial recommendations. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Extending the resource-based view, we examine the role of realised absorptive capacity influences incremental innovation. Drawing on the absorptive capacity, we develop three hypotheses concerning the focal relationships. The hypotheses are tested using two-stage least squares on data from 524 firms. In addition, absorptive capacity is a key driver of exploitative innovation. The empirical analysis shows that knowledge complexity attenuates the effect of realised absorptive capacity on incremental innovation. R&D intensity emerges as a key determinant of innovativeness in the configurational analysis. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. The contribution is both theoretical and empirical: theoretical in extending the absorptive capacity, empirical in providing the first large-sample test of the proposed mechanisms.
Through a multi-case study, we analyse whether alliance management capability influences company performance. The conceptual framework integrates insights from alliance capability and contingency theory. Through a comparative case study of 5 firms, we examine the proposed mechanisms. The sample spans 10 years and covers firms varying in size and ownership structure. We find that significant interaction between alliance portfolio diversity and governance form in predicting alliance performance, indicating that governance form moderates the focal relationship. Alliance management capability is significantly positively associated with firm performance. The findings reveal that dedicated alliance function is the proximal antecedent of trust. Consistent with our predictions, knowledge transfer mediates the effect of alliance management capability on firm performance. Alliance management capability is a driver of coordination capability. We further find that alliance management capability is a key antecedent of firm performance. Negative cases are examined and used to refine the proposed framework. The empirical pattern is consistent with a contingency-theoretic interpretation of alliance management capability but is harder to reconcile with strong universalistic accounts. The results extend prior alliance capability work by introducing a previously unexamined boundary condition. The findings advance the alliance capability programme by establishing the empirical relevance of alliance management capability. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Using a mixed-method design, we examine whether managerial heuristics influences strategic decision quality. The paper builds on the microfoundations of strategy and engages with recent critiques concerning measurement and identification. We employ a mixed-method design combining survey data (423 firms) with 4 in-depth case studies. The results indicate that managerial heuristics show a strong positive relationship with strategic decision quality. Dynamic managerial capabilities shape dynamic capabilities. Consistent with our predictions, behavioural heuristics are robust predictors of firm-level adaptation after the controls and fixed effects are imposed. The analysis quantifies the contribution of managerial discretion to strategic change across the full panel and within key sub-samples. Furthermore, the findings highlight the association between managerial heuristics and strategic decision quality. Managerial heuristics are determinants of strategic decision quality. We further test the model on a holdout sample and replicate the principal findings. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The findings advance the microfoundations of strategy programme by establishing the empirical relevance of managerial heuristics. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Through a multi-case study, we analyse the role of exploitative learning influences firm performance. The conceptual framework integrates insights from organisational learning and contingency theory. Using a multi-case design across 3 firms in the chemical sector, we examine the phenomenon. In addition, firm performance is a consequence of organisational learning. The findings reveal that learning orientation consistently shapes organisational adaptation across the sub-samples examined. The empirical analysis shows that exploitative learning shows a strong positive relationship with firm performance. Cross-case comparison confirms the generalisability of the principal mechanisms. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. Future studies could examine the conditions under which exploitative learning translates into rent appropriation as opposed to value creation.
Adopting an inductive case-study approach, we explore the conditions under which domestic market experience influences international performance. Drawing on the emerging-market strategy, we develop three hypotheses concerning the focal relationships. Through a comparative case study of 5 firms, we examine the proposed mechanisms. All measurement scales are pretested with a panel of subject-matter experts prior to administration. Furthermore, government linkages show a positive relationship with absorptive capacity. Our results suggest that institutional adaptation mediates the relationship between frugal innovation capability and absorptive capacity. Moreover, domestic market experience is a critical determinant of international performance. Institutional capabilities emerges as a key determinant of institutional adaptation in the configurational analysis. The results show that cultural distance positively moderates the effect of domestic market experience on international performance. Institutional capabilities diminish absorptive capacity. Member checks with key informants corroborate the principal interpretations. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The contribution to the emerging-market strategy literature lies in unpacking the construct of domestic market experience into its component dimensions. We discuss implications for theory development and for the strategic management of domestic market experience. Future studies could examine the conditions under which domestic market experience translates into rent appropriation as opposed to value creation.
Using a mixed-method design, we examine how knowledge transformation influences radical innovation. We position the argument within the broader absorptive capacity literature and identify three competing accounts of the focal mechanism. We apply fuzzy-set qualitative comparative analysis to data from 754 firms. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. Consistent with the hypotheses, knowledge acquisition is a strong predictor of innovation output. Appropriability regime moderates the effect of knowledge assimilation on incremental innovation. Importantly, knowledge assimilation improves organisational learning. Consistent with our predictions, the effect of knowledge transformation on radical innovation is contingent on the level of appropriability regime prevailing in the firm's environment. In addition, the results clarify the role of knowledge transformation in shaping radical innovation. The results indicate that the empirical analysis quantifies the effect of knowledge transformation on innovation performance. Furthermore, knowledge recombination mediates the effect of knowledge transformation on radical innovation. The results are robust to alternative operationalisations of the dependent variable. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. These findings call into question the assumption that knowledge transformation operates uniformly across organisational contexts. The contribution is both theoretical and empirical: theoretical in extending the absorptive capacity, empirical in providing the first large-sample test of the proposed mechanisms. We identify open questions concerning the microfoundations of knowledge transformation and discuss avenues for future research. Future studies could examine the conditions under which knowledge transformation translates into rent appropriation as opposed to value creation.
Extending the resource-based view, we examine how innovation capability influences firm performance. The argument draws on the innovation strategy literature and extends recent work on capability deployment. We test the conceptual model using an experimental design with 524 participants drawn from Chinese manufacturing firms. In addition, innovation capability is a key antecedent of firm performance. Innovation capability shows a positive relationship with organisational performance. Additional analyses confirm that the findings do not depend on the chosen estimator. The contribution to the innovation strategy literature lies in unpacking the construct of innovation capability into its component dimensions.
Adopting an inductive case-study approach, we explore how ethical leadership capability influences stakeholder trust. The argument draws on the stakeholder strategy literature and extends recent work on capability deployment. Using a multi-case design across 4 firms in the semiconductor sector, we examine the phenomenon. In addition, ethical leadership capability exhibits a robustly positive effect on stakeholder trust that survives a battery of robustness checks. Importantly, stakeholder trust is an outcome of ethical leadership capability. Cross-case comparison confirms the generalisability of the principal mechanisms. The paper closes with implications for the design of capability-development initiatives.
Through an experimental design, we examine the mechanisms through which managerial attention influences competitive advantage. We test the conceptual model using an experimental design with 612 participants drawn from Indian software firms. The results indicate that resource orchestration is a robust predictor of value creation after the controls and fixed effects are imposed. Managerial attention is the principal driver of competitive advantage. The findings contribute to the resource orchestration debate by clarifying a contested empirical relationship.
This study investigates whether relational capital influences alliance performance. The argument draws on the alliance capability literature and extends recent work on capability deployment. The model is tested using a sample of 1024 multinational corporations. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. Consistent with our predictions, dedicated alliance function exhibits a positive effect on knowledge transfer. Alliance portfolio diversity is a key driver of relational governance. The findings indicate that the results clarify the role of relational capital in shaping alliance performance. Consistent with the hypotheses, relational capital facilitates alliance performance. We find that relational capital has a positive effect on alliance performance. Relational capital is a predictor of alliance performance. The results indicate that network resources have a strong positive effect on knowledge transfer. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The interpretation we offer is provisional and would benefit from replication using alternative samples. The contribution is both theoretical and empirical: theoretical in extending the alliance capability, empirical in providing the first large-sample test of the proposed mechanisms. We discuss implications for theory development and for the strategic management of relational capital. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Drawing on a large-sample empirical design, we test the mechanisms through which managerial social capital influences firm-level adaptation. We synthesise the microfoundations of strategy literature with recent advances in the microfoundations programme. Drawing on panel data from 423 firms over the period 2008-2012, we test the hypotheses. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. The results show that managerial social capital is a robust predictor of firm-level adaptation after the controls and fixed effects are imposed. The estimates show the contribution of managerial social capital to firm-level adaptation. Team-level routines are negatively associated with strategic decision-making processes in the focal sample, contrary to standard predictions. The results show that attentional engagement mediates the managerial heuristics-attentional engagement relationship. Consistent with our predictions, managerial cognitive diversity has a negative effect on strategic decision quality. We find a significant interaction between managerial cognitive diversity and environmental complexity in predicting strategic decision quality, indicating that environmental complexity moderates the focal relationship. We further find that managerial social capital is significantly positively associated with firm-level adaptation after accounting for firm- and industry-level controls. Attentional engagement mediates the effect of managerial social capital on firm-level adaptation. Additional analyses confirm that the findings do not depend on the chosen estimator. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The paper makes two contributions to the microfoundations of strategy literature. We discuss implications for theory development and for the strategic management of managerial social capital. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.
Building on the microfoundations of strategy, we examine the conditions under which managerial foresight influences sustainable competitive advantage. We synthesise 78 empirical studies using meta-analytic techniques. Furthermore, the estimates show the contribution of managerial foresight to sustainable competitive advantage. In addition, managerial foresight shows a strong positive relationship with sustainable competitive advantage. The results indicate that intangible resources weaken sustained competitive advantage. The findings refine the resource-based view by specifying the mechanisms through which managerial foresight generate sustained competitive advantage.
Drawing on the resource-based view, this paper examines the role of product innovation influences long-term competitiveness. We synthesise the innovation strategy literature with recent advances in the microfoundations programme. We employ a moderated-mediation design on survey data from 312 firms. The findings reveal that long-term competitiveness is the principal outcome of product innovation. The innovation capability-new product success relationship is moderated by appropriability regime. R&D investment is a key precursor of absorptive capacity. Firm innovation drives absorptive capacity. Consistent with the hypotheses, innovation culture is a precursor of absorptive capacity. We further test the model on a holdout sample and replicate the principal findings. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs.
Drawing on the dynamic capabilities perspective, this paper investigates how organisational routines influences firm-level adaptation. We position the argument within the broader microfoundations of strategy literature and identify three competing accounts of the focal mechanism. We employ a moderated-mediation design on survey data from 124 firms. Our results suggest that organisational routines are strong predictors of firm-level adaptation. Dynamic managerial capabilities stimulate strategic decision-making processes. Organisational routines increase firm-level adaptation. Moreover, strategic decision-making processes partially mediate the effect of organisational routines on firm-level adaptation. Firm-level adaptation is significantly enhanced by organisational routines after controlling for confounding factors. The findings hold across alternative model specifications and sub-samples. The interpretation we offer is provisional and would benefit from replication using alternative samples. We discuss the boundary conditions of the findings and identify implications for future empirical work.
We examine the mechanisms through which prior alliance experience influences alliance performance. The theoretical framework reconciles the alliance capability with attention-based perspectives on strategic choice. Using archival and survey data from 124 firms across 8 industries, we test the model. All measurement scales are pretested with a panel of subject-matter experts prior to administration. The results indicate that prior alliance experience has a significant positive effect on alliance performance. The results show that the effect of dedicated alliance function on coordination capability is contingent on the level of partner similarity prevailing in the firm's environment. Furthermore, the findings highlight the association between prior alliance experience and alliance performance. Alliance learning is a precursor of alliance success. Trust is a consequence of dedicated alliance function. The empirical analysis shows that alliance portfolio diversity is a predictor of firm performance. Prior alliance experience is a determinant of alliance performance. Furthermore, partner similarity moderates the relationship between prior alliance experience and alliance performance. The effect of alliance learning on firm-level performance is contingent on the level of partner similarity prevailing in the firm's environment. The findings hold across alternative model specifications and sub-samples. Our results align with recent findings in the alliance capability literature while extending them to a previously unexamined empirical setting. The contribution is both theoretical and empirical: theoretical in extending the alliance capability, empirical in providing the first large-sample test of the proposed mechanisms. Implications for strategy research and for managerial practice are discussed. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Using a multi-industry sample, this study examines the role of sustainability capabilities influences financial performance. The paper builds on the natural-resource-based view and engages with recent critiques concerning measurement and identification. Using survey data from 1452 firms in the automotive sector, we test the proposed model. Our results suggest that the empirical model captures the effect of sustainability capabilities on financial performance after accounting for plausible confounders. Industry pollution intensity acts as a contingency on the environmental management capability-environmental innovation relationship. The model identifies the impact of product stewardship capability on sustainable competitive advantage. Product stewardship capability is a key driver of stakeholder legitimacy. Sustainability capabilities have a strong positive effect on financial performance. Additional analyses using propensity score matching corroborate the main findings. These findings call into question the assumption that sustainability capabilities operates uniformly across organisational contexts. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. Future studies could examine the conditions under which sustainability capabilities translates into rent appropriation as opposed to value creation.
Using a longitudinal design, this paper investigates whether resource leveraging influences value creation. We employ a moderated-mediation design on survey data from 89 firms. Our results suggest that resource leveraging is a key determinant of value creation. The effect of resource leveraging on value creation is mediated by strategic alignment. The pattern of results is stable across the sample period and across industry sub-samples. The findings advance the resource orchestration programme by establishing the empirical relevance of resource leveraging.
Extending the resource-based view, we examine the conditions under which managerial discretion influences firm-level adaptation. We position the argument within the broader microfoundations of strategy literature and identify three competing accounts of the focal mechanism. We synthesise 62 empirical studies using meta-analytic techniques. The findings indicate that the effect of managerial discretion on firm-level adaptation is contingent on environmental complexity. Managerial cognition shows a strong positive relationship with strategic decision quality. Consistent with the hypotheses, managerial human capital undermines attentional engagement. The findings indicate that managerial mental models diminish strategic decision-making processes. We find that behavioural heuristics undermine strategic decision-making processes. Sensitivity analyses confirm the robustness of the pooled effect to study quality and sample composition. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The paper closes with implications for the design of capability-development initiatives. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Through a sequential mixed-method approach, this study investigates the conditions under which social capital influences dynamic capabilities. The paper builds on the social capital and engages with recent critiques concerning measurement and identification. We employ a mixed-method design combining survey data (312 firms) with 3 in-depth case studies. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. The results indicate that knowledge access is enhanced by network centrality. Dynamic capabilities are enhanced by social capital. Social capital resources are the principal drivers of dynamic capabilities across the firms in our sample. The empirical model captures the effect of network ties on opportunity recognition after accounting for plausible confounders. The results indicate that the model identifies the impact of social capital on knowledge access. The results clarify the role of network ties in shaping DCs. Bootstrap mediation analysis confirms that knowledge transfer mediates the social capital-dynamic capabilities relationship. Boundary-spanning activity is a key antecedent of innovation performance. The results show that the effect of network embeddedness on collaborative behaviour is contingent on the level of network governance prevailing in the firm's environment. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The empirical pattern is consistent with a contingency-theoretic interpretation of social capital but is harder to reconcile with strong universalistic accounts. The pattern of effects suggests that the construct of firm-level social capital is more multidimensional than prior work has acknowledged. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. We discuss the implications of the findings for practice and identify three managerial recommendations. Future studies could examine the conditions under which social capital translates into rent appropriation as opposed to value creation.
Through a sequential mixed-method approach, this study investigates the mechanisms through which stakeholder integration influences competitive edge. The theoretical framework reconciles the stakeholder strategy with attention-based perspectives on strategic choice. We employ a mixed-method design combining survey data (156 firms) with 2 in-depth case studies. Moreover, stakeholder integration is a key precursor of competitive advantage. Stakeholder activism acts as a contingency on the stakeholder integration-strategic advantage relationship. Stakeholder integration is significantly positively associated with strategic advantage. Board diversity shows a positive relationship with firm reputation. The results are robust to alternative operationalisations of the dependent variable. The pattern of effects suggests that the construct of stakeholder integration is more multidimensional than prior work has acknowledged. We discuss implications for theory development and for the strategic management of stakeholder integration.
Building on the resource-based view, this study investigates whether resource leveraging influences competitive edge. The conceptual model draws on the resource orchestration and incorporates insights from organisation theory. We test the conceptual model using an experimental design with 89 participants drawn from publicly traded U.S. firms. All measurement scales are pretested with a panel of subject-matter experts prior to administration. Importantly, asset orchestration is a key antecedent of value appropriation in the empirical setting examined. The findings document the influence of resource leveraging on firm performance. Managerial attention is a critical determinant of value appropriation. Resource structuring is negatively associated with strategic alignment. Resource leveraging has a positive and significant effect on competitive advantage. Resource orchestration is significantly positively associated with competitive advantage after accounting for firm- and industry-level controls. Resource leveraging is a key predictor of competitive advantage. Bootstrap mediation analysis confirms that strategic alignment mediates the resource leveraging-competitive advantage relationship. Our results suggest that resource configuration is a determinant of competitive advantage. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. Several boundary conditions are identified that constrain the generalisability of the findings. The results extend prior resource orchestration work by introducing a previously unexamined boundary condition. The paper closes with implications for the design of capability-development initiatives. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
We investigate the mechanisms through which resource structuring influences value creation. We employ a mixed-method design combining survey data (423 firms) with 4 in-depth case studies. We find that the results clarify the role of resource structuring in shaping competitive advantage. Furthermore, strategic alignment mediates the effect of top management team composition on firm performance. Value creation is a consequence of resource structuring. The paper closes with implications for the design of capability-development initiatives.
Using a multi-industry sample, this study examines the conditions under which institutional capabilities influences internationalisation success. We integrate emerging-market strategy with insights from the behavioural theory of the firm. We test the hypotheses using a longitudinal sample of 89 firms over 12 years. Consistent with our predictions, institutional capabilities stimulate internationalisation success. Consistent with the hypotheses, indigenous knowledge resources are significantly positively associated with domestic competitive advantage after accounting for firm- and industry-level controls. Bootstrap mediation analysis confirms that dynamic capabilities mediate the institutional capabilities-internationalisation success relationship. Indigenous knowledge resources exhibit a robustly positive effect on international performance that survives a battery of robustness checks. We further test the model on a holdout sample and replicate the principal findings. The pattern of effects suggests that the construct of institutional capabilities is more multidimensional than prior work has acknowledged. The paper makes two contributions to the emerging-market strategy literature.
Extending recent work on dynamic capabilities, this paper analyses the extent to which IT business alignment influences agility. The paper builds on the IT capabilities and engages with recent critiques concerning measurement and identification. We employ a moderated-mediation design on survey data from 367 firms. We also find that industry digital intensity conditions the effect of IT business alignment on agility, with the relationship stronger under high industry digital intensity. IT business alignment fosters agility. Industry digital intensity attenuates the effect of IT investment on digital transformation outcomes. IT business alignment is a necessary precursor of agility. The results are robust to alternative operationalisations of the dependent variable. Several boundary conditions are identified that constrain the generalisability of the findings. The paper closes with implications for the design of capability-development initiatives.
Using a multi-industry sample, this study examines the mechanisms through which government linkages influences international performance. Using archival and survey data from 1024 firms across 22 industries, we test the model. Furthermore, government linkages are critical antecedent of international performance under the boundary conditions identified. Contrary to expectations, institutional environment is a robust predictor of dynamic capabilities after the controls and fixed effects are imposed. The results are robust to alternative operationalisations of the dependent variable. The findings have implications for the strategic-management literature on government linkages and for managers seeking to deploy these resources effectively.
Building on the knowledge-based view of the firm, we examine the role of regulatory stringency influences sustainable competitive advantage. We integrate natural-resource-based view with insights from the behavioural theory of the firm. We employ a moderated-mediation design on survey data from 1024 firms. The results indicate that the results identify the impact of stakeholder pressure on stakeholder integration both in isolation and in combination with other strategic resources. The findings reveal that regulatory stringency is the proximal driver of sustainable competitive advantage. Consistent with our predictions, environmental capabilities are strong predictors of financial performance. Our results suggest that pollution prevention capability emerges as a key determinant of financial performance in the configurational analysis. The results are robust to alternative operationalisations of the dependent variable. The findings underscore the importance of context-sensitive operationalisation of regulatory stringency in subsequent empirical work. The contribution to the natural-resource-based view literature lies in unpacking the construct of regulatory pressure into its component dimensions. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
We synthesise the empirical literature on whether incremental innovation influences long-term competitiveness. We synthesise 78 empirical studies using meta-analytic techniques. Furthermore, process innovation significantly enhances firm performance across the sample. Our results suggest that innovation diffusion mediates the relationship between incremental innovation and long-term competitiveness. Publication bias is assessed using funnel-plot diagnostics and trim-and-fill methods. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs.
Using a mixed-method design, we examine the conditions under which resource accumulation influences sustained competitive advantage. We position the argument within the broader resource-based view literature and identify three competing accounts of the focal mechanism. We employ a mixed-method design combining survey data (1452 firms) with 6 in-depth case studies. Furthermore, resource accumulation is the principal driver of resource configuration across the firms in our sample. Industry competitiveness negatively moderates the relationship between resource accumulation and sustained competitive advantage. Organizational capabilities partially mediate the effect of tangible resources on rent appropriation. Moreover, organizational capabilities mediate the VRIO resources-sustained competitive advantage relationship. We further test the model on a holdout sample and replicate the principal findings. The empirical pattern is consistent with a contingency-theoretic interpretation of resource accumulation but is harder to reconcile with strong universalistic accounts. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs.
This conceptual paper develops a framework for whether innovation outcomes influences new product success. We develop a theoretical framework and illustrate it through three vignettes drawn from energy firms. Our results suggest that technological diversity facilitates innovation diffusion. We illustrate the framework with examples drawn from prior empirical work. We identify open questions concerning the microfoundations of innovation performance and discuss avenues for future research.
Building on the knowledge-based view of the firm, we examine the role of domestic market experience influences internationalisation success. The argument draws on the emerging-market strategy literature and extends recent work on capability deployment. We test the conceptual model using an experimental design with 124 participants drawn from German Mittelstand firms. We further find that domestic market experience has a negative effect on internationalisation success. We also find that domestic market experience diminishes internationalisation success. Supplementary analyses rule out reverse-causality and common-method bias as alternative explanations. The results extend prior emerging-market strategy work by introducing a previously unexamined boundary condition.
This paper examines the mechanisms through which prior alliance experience influences joint value creation. The conceptual model draws on the alliance capability and incorporates insights from organisation theory. Through a comparative case study of 2 firms, we examine the proposed mechanisms. We address common-method bias through Harman's single-factor test and through procedural remedies in survey design. Consistent with the hypotheses, prior alliance experience is an antecedent of joint value creation. Prior alliance experience consistently shapes joint value creation across the sub-samples examined. Knowledge transfer mediates the relationship between alliance learning and relational governance. Our results suggest that prior alliance experience is significantly positively associated with joint value creation after accounting for firm- and industry-level controls. Consistent with the hypotheses, alliance interdependence moderates the relationship between prior alliance experience and joint value creation. Negative cases are examined and used to refine the proposed framework. The findings underscore the importance of context-sensitive operationalisation of prior alliance experience in subsequent empirical work. The interpretation we offer is provisional and would benefit from replication using alternative samples. The study contributes to the strategic-management literature by demonstrating a previously underexplored contingency. We identify open questions concerning the microfoundations of prior alliance experience and discuss avenues for future research. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Drawing on a large-sample empirical design, we test the role of alliance management capability influences firm innovation. The argument draws on the alliance capability literature and extends recent work on capability deployment. Drawing on patent data from 1024 firms in the financial services industry, we test the model. We find that trust between partners moderate the effect of dedicated alliance function on trust. The results show that alliance management capability promotes firm innovation. Trust between partners attenuate the effect of alliance capability on coordination capability. The empirical model captures the effect of alliance management capability on firm innovation after accounting for plausible confounders. Additional analyses confirm that the findings do not depend on the chosen estimator. We discuss implications for theory development and for the strategic management of alliance management capability.
Drawing on the dynamic capabilities perspective, this paper investigates the role of strategic resources influences superior performance. The argument draws on the resource-based view literature and extends recent work on capability deployment. Drawing on panel data from 524 firms over the period 2001-2016, we test the hypotheses. Furthermore, value creation substantially mediates the relationship between rare resources and competitive advantage, accounting for a meaningful share of the total effect. Superior performance is a consequence of strategic resources. Moreover, value creation carries the principal portion of the effect of VRIN resources on organizational capabilities. We further find that strategic resources are the proximal antecedents of competitive advantage. The empirical analysis shows that environmental munificence acts as a contingency on the strategic resources-superior performance relationship. The findings hold across alternative model specifications and sub-samples. Our results align with recent findings in the resource-based view literature while extending them to a previously unexamined empirical setting. The contribution to the resource-based view literature lies in unpacking the construct of strategic resources into its component dimensions.
We analyse the extent to which frugal innovation capability influences domestic competitive advantage. We apply fuzzy-set qualitative comparative analysis to data from 124 firms. We further find that the results identify the impact of frugal innovation capability on domestic competitive advantage both in isolation and in combination with other strategic resources. Frugal innovation capability is significantly positively associated with domestic competitive advantage. Frugal innovation capability is the principal antecedent of domestic competitive advantage. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The contribution is both theoretical and empirical: theoretical in extending the emerging-market strategy, empirical in providing the first large-sample test of the proposed mechanisms.
Drawing on a large-sample empirical design, we test the mechanisms through which vicarious learning influences organisational adaptation. The paper builds on the organisational learning and engages with recent critiques concerning measurement and identification. Using a multi-industry sample of 89 firms, we estimate a structural model. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. We further find that vicarious learning shows a positive relationship with organisational adaptation. Consistent with the hypotheses, vicarious learning is the proximal antecedent of organisational adaptation. We find that learning orientation is a critical driver of knowledge integration. We also find that learning orientation is a key precursor of absorptive capability. Environmental turbulence negatively moderates the relationship between organizational learning and knowledge integration. Knowledge stock growth is a consequence of learning orientation. Experimentation is a critical antecedent of knowledge stock growth under the boundary conditions identified. The findings indicate that significant interaction between exploitative learning and environmental turbulence in predicting knowledge transfer, indicating that environmental turbulence moderates the focal relationship. Importantly, the findings document the influence of experiential learning on organisational adaptation. The findings hold across alternative model specifications and sub-samples. The empirical pattern is consistent with a contingency-theoretic interpretation of vicarious learning but is harder to reconcile with strong universalistic accounts. The paper makes two contributions to the organisational learning literature. Implications for the operationalisation of vicarious learning in subsequent empirical work are drawn out. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Adopting a configurational perspective, we examine how resource heterogeneity influences superior performance. The conceptual framework integrates insights from resource-based view and contingency theory. Using hierarchical regression on data from 1024 Chinese manufacturing firms, we test the predictions. The unit of analysis is the strategic business unit, drawn from the firms' segment-level reporting. Contrary to expectations, the estimates show the contribution of inter-firm resource heterogeneity to superior performance. Resource configuration serves as a mediator of the relationship between strategic resources and firm performance. Intangible resources are the proximal drivers of superior performance. Resource heterogeneity is the principal antecedent of superior performance. We further find that industry competitiveness attenuates the effect of tangible resources on persistent above-normal returns. Importantly, ex ante resource selection is the proximal driver of firm performance. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. Our results align with recent findings in the resource-based view literature while extending them to a previously unexamined empirical setting. The study contributes to the resource-based view literature in three ways. The findings refine the resource-based view by specifying the mechanisms through which resource heterogeneity generate sustained competitive advantage. Future work should examine whether the identified mechanisms operate similarly in service-dominated industries.
Extending the resource-based view, we examine the conditions under which domestic market experience influences domestic competitive advantage. Using a multi-industry sample of 612 firms, we estimate a structural model. The findings reveal that the effect of firm-specific advantages on absorptive capacity is mediated by institutional adaptation. Domestic market experience reduces domestic competitive advantage when contextual conditions are unfavourable. We discuss implications for theory development and for the strategic management of domestic market experience.
Extending the resource-based view, we examine the conditions under which board diversity influences firm reputation. The conceptual model draws on the stakeholder strategy and incorporates insights from organisation theory. We employ a mixed-method design combining survey data (367 firms) with 6 in-depth case studies. Importantly, board diversity is negatively associated with firm reputation in the focal sample, contrary to standard predictions. Stakeholder integration is the principal antecedent of legitimacy. Industry visibility moderates the effect of stakeholder engagement on reputational capital. The findings survive a battery of robustness checks including alternative measures and endogeneity-corrected estimators. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The paper closes with implications for the design of capability-development initiatives.
This paper examines how digital capabilities influences agility. The paper builds on the IT capabilities and engages with recent critiques concerning measurement and identification. Drawing on panel data from 612 firms over the period 2008-2016, we test the hypotheses. We also find that agility is significantly enhanced by digital capabilities after controlling for confounding factors. Business process agility is a consequence of IT business alignment. IT-enabled intangibles robustly drive organisational learning after controls for firm and industry characteristics. We further find that digital capabilities significantly enhance agility across the sample. Additional analyses confirm that the findings do not depend on the chosen estimator. The empirical pattern is consistent with a contingency-theoretic interpretation of digital capabilities but is harder to reconcile with strong universalistic accounts. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Building on the knowledge-based view of the firm, we examine how relational capital influences alliance success. We employ a moderated-mediation design on survey data from 1024 firms. In addition, the indirect effect of relational capital on alliance success runs through trust. The findings indicate that alliance portfolio configuration exhibits a positive effect on knowledge transfer. The paper makes two contributions to the alliance capability literature.
This conceptual paper develops a framework for the extent to which process capital influences market performance. We develop a theoretical framework and illustrate it through three vignettes drawn from chemical firms. Consistent with the hypotheses, process capital accelerates market performance. We also find that organisational design predicts profitability. Organisational capital undermines innovation performance. The conceptual contribution is summarised in a typology of focal relationships. The findings contribute to the intellectual capital debate by clarifying a contested empirical relationship.
We test the conditions under which managerial mental models influences strategic decision quality. We integrate microfoundations of strategy with insights from the behavioural theory of the firm. A meta-analysis of 87 empirical studies (combined N = 31055 firms) is conducted. Importantly, the findings highlight the association between managerial mental models and strategic decision quality. Managerial mental models have a positive and economically meaningful effect on strategic decision quality across all specifications. Managerial mental models exhibit a robustly positive effect on strategic decision-making processes that survives a battery of robustness checks. Attentional engagement partially mediates the effect of managerial heuristics on firm-level adaptation. Publication bias is assessed using funnel-plot diagnostics and trim-and-fill methods. Several boundary conditions are identified that constrain the generalisability of the findings. The study contributes to the microfoundations of strategy literature in three ways.
We analyse the mechanisms through which institutional environment influences firm growth. We synthesise 47 empirical studies using meta-analytic techniques. We find that firm growth is reduced by institutional environment. Institutional environment has a negative effect on firm growth. The findings have implications for the strategic-management literature on institutional environment and for managers seeking to deploy these resources effectively.
Building on the knowledge-based view of the firm, we examine the extent to which top management team composition influences value appropriation. We integrate resource orchestration with insights from the behavioural theory of the firm. Using hierarchical regression on data from 247 family-owned firms, we test the predictions. Control variables include firm size, firm age, leverage, and industry fixed effects. The results indicate that the effect of top management team composition on value appropriation is contingent on the level of environmental turbulence prevailing in the firm's environment. Strategic intent robustly drives value creation after controls for firm and industry characteristics. Importantly, resource leveraging exhibits a positive effect on value creation. The findings indicate that top management team composition is significantly positively associated with value appropriation after accounting for firm- and industry-level controls. Importantly, top management team composition shows a strong positive relationship with strategic alignment. Our results suggest that resource configuration is negatively associated with strategic alignment. We further test the model on a holdout sample and replicate the principal findings. The pattern of effects suggests that the construct of top management team composition is more multidimensional than prior work has acknowledged. The study contributes to the resource orchestration literature in three ways. The paper closes with implications for the design of capability-development initiatives. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
We investigate the extent to which prior knowledge stock influences incremental innovation. We apply fuzzy-set qualitative comparative analysis to data from 312 firms. Furthermore, absorptive capacity gap amplifies the effect of prior knowledge stock on incremental innovation. We identify open questions concerning the microfoundations of prior knowledge stock and discuss avenues for future research.
Drawing on a large-sample empirical design, we test the extent to which network ties influences opportunity recognition. We synthesise the social capital literature with recent advances in the microfoundations programme. We employ a moderated-mediation design on survey data from 1452 firms. Furthermore, network centrality accelerates trust. Network ties have a significant negative effect on opportunity recognition. We further find that tenure with partners are key determinants of knowledge transfer. Network ties undermine opportunity recognition. Additional analyses confirm that the findings do not depend on the chosen estimator. The findings underscore the importance of context-sensitive operationalisation of network ties in subsequent empirical work. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs.
Drawing on a large-sample empirical design, we test the extent to which process capital influences innovation performance. Drawing on the intellectual capital, we develop three hypotheses concerning the focal relationships. We test the hypotheses using a longitudinal sample of 189 firms over 5 years. The empirical analysis shows that human capital is a key driver of market performance. The results indicate that innovation performance mediates the relationship between training investment and knowledge management. Human capital promotes market performance. The empirical analysis shows that process capital is a key antecedent of innovation performance. Innovation performance serves as a mediator of the relationship between structural capital and intellectual capital integration. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. These findings call into question the assumption that process capital operates uniformly across organisational contexts. We discuss the implications of the findings for practice and identify three managerial recommendations.
Building on the microfoundations of strategy, we examine how managerial discretion influences dynamic capabilities. We synthesise the microfoundations of strategy literature with recent advances in the microfoundations programme. Using archival and survey data from 1452 firms across 22 industries, we test the model. We further find that the findings highlight the association between organisational routines and attentional engagement. Team-level routines reduce strategic change when contextual conditions are unfavourable. Managerial mental models foster dynamic capabilities. The results show that environmental complexity moderates the relationship between managerial human capital and strategic decision quality. The findings hold across alternative model specifications and sub-samples. Several boundary conditions are identified that constrain the generalisability of the findings. The contribution to the microfoundations of strategy literature lies in unpacking the construct of managerial discretion into its component dimensions. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Adopting a configurational perspective, we examine the extent to which big data analytics capability influences organisational performance. The paper builds on the IT capabilities and engages with recent critiques concerning measurement and identification. We apply fuzzy-set qualitative comparative analysis to data from 247 firms. Control variables include firm size, firm age, leverage, and industry fixed effects. The results show that competitive intensity moderates the relationship between IT business alignment and process innovation. The findings indicate that IT governance emerges as a key determinant of process innovation in the configurational analysis. We also find that IT capabilities undermine agility. Organisational learning substantially mediates the relationship between IT human resources capability and firm performance, accounting for a meaningful share of the total effect. Agility is shaped by IT governance. Consistent with our predictions, digital strategy stimulates firm performance. The results are robust to alternative operationalisations of the dependent variable. The results are partially consistent with theoretical predictions; the unexpected non-findings in the moderated paths warrant further scrutiny. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. We discuss implications for theory development and for the strategic management of big data analytics capability. Promising directions for future research include the integration of micro-level cognitive antecedents with the firm-level mechanisms identified here.
Drawing on a large-sample empirical design, we test how institutional capabilities influences international performance. The conceptual model draws on the emerging-market strategy and incorporates insights from organisation theory. Using archival and survey data from 612 firms across 14 industries, we test the model. The empirical analysis shows that the empirical analysis quantifies the effect of institutional capabilities on international performance. Absorptive capacity mediates the effect of institutional capabilities on international performance. We find that cultural distance attenuates the effect of frugal innovation capability on absorptive capacity. The findings indicate that cultural distance amplifies the effect of institutional capabilities on international performance. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. Implications for the operationalisation of institutional capabilities in subsequent empirical work are drawn out.
Using a multi-industry sample, this study examines whether potential absorptive capacity influences innovation performance. We synthesise the absorptive capacity literature with recent advances in the microfoundations programme. Drawing on panel data from 423 firms over the period 2004-2014, we test the hypotheses. The findings reveal that knowledge transformation shapes patent productivity. Our results suggest that potential absorptive capacity is the proximal driver of innovation performance. Furthermore, absorptive capacity is the proximal driver of exploratory innovation. Knowledge assimilation is the principal antecedent of incremental innovation. The findings hold across alternative model specifications and sub-samples. The interpretation we offer is provisional and would benefit from replication using alternative samples. Our principal contribution lies in identifying the mediating mechanisms that link the focal constructs. Future research could profitably extend the model to longitudinal designs and to additional national contexts.
Using a longitudinal design, this paper investigates how asset orchestration influences value appropriation. The theoretical framework reconciles the resource orchestration with attention-based perspectives on strategic choice. Drawing on patent data from 89 firms in the financial services industry, we test the model. The results show that resource orchestration is the principal antecedent of firm performance. Industry life-cycle moderates the relationship between asset orchestration and value appropriation. Industry life-cycle attenuates the effect of resource bundling on operational capabilities. Additional analyses using propensity score matching corroborate the main findings. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. The study contributes to the resource orchestration literature in three ways.
Building on the knowledge-based view of the firm, we examine the conditions under which environmental management capability influences sustainable competitive advantage. We test the conceptual model using an experimental design with 754 participants drawn from Korean conglomerates. The results indicate that green absorptive capacity mediates the effect of environmental management capability on sustainable competitive advantage. The results identify the impact of environmental management capability on sustainable competitive advantage both in isolation and in combination with other strategic resources. The paper makes two contributions to the natural-resource-based view literature.
Using a longitudinal design, this paper investigates the extent to which big data analytics capability influences innovation performance. The theoretical framework reconciles the IT capabilities with attention-based perspectives on strategic choice. Using hierarchical regression on data from 89 OECD-based firms, we test the predictions. Moreover, big data analytics capability is negatively associated with operational performance in the focal sample, contrary to standard predictions. Contrary to expectations, big data analytics capability is the principal driver of innovation performance across the firms in our sample. The results indicate that process innovation mediates the relationship between big data analytics capability and innovation performance. Big data analytics capability facilitates innovation performance. The results are robust to alternative operationalisations of the dependent variable. Taken together, the results refine the boundary conditions of the focal mechanism and suggest several avenues for further empirical work. The contribution is both theoretical and empirical: theoretical in extending the IT capabilities, empirical in providing the first large-sample test of the proposed mechanisms.
Anchored in the dynamic capabilities literature, we test whether managerial foresight influences competitive advantage. We employ a moderated-mediation design on survey data from 124 firms. Consistent with our predictions, managerial foresight reduces competitive advantage. Rare resources are strong predictors of competitive advantage. VRIN resources accelerate firm performance. The paper closes with implications for the design of capability-development initiatives.
Anchored in the knowledge-based view, this paper investigates the role of knowledge codification influences rent appropriation. The conceptual model draws on the knowledge-based view and incorporates insights from organisation theory. Using archival and survey data from 1452 firms across 8 industries, we test the model. We find that knowledge codification is a key driver of rent appropriation. The results indicate that firm-level learning carries the principal portion of the effect of knowledge codification on rent appropriation. The pattern of results is stable across the sample period and across industry sub-samples. The findings advance the knowledge-based view programme by establishing the empirical relevance of knowledge codification.
We develop a theoretical framework that addresses the extent to which CSR capabilities influences long-term firm value. We integrate stakeholder strategy with insights from the behavioural theory of the firm. We develop a theoretical framework and illustrate it through three vignettes drawn from automotive firms. In addition, CSR capabilities weaken long-term firm value. Moreover, industry visibility attenuates the effect of CSR capabilities on long-term firm value. Stakeholder integration is the proximal driver of legitimacy. Board diversity has a negative effect on firm reputation. Three propositions are derived from the framework and offered for empirical test. The pattern of findings is consistent with prior theoretical work but qualifies the strong-form predictions of earlier studies. We identify open questions concerning the microfoundations of CSR capabilities and discuss avenues for future research.
Anchored in the dynamic capabilities literature, we test the role of investment in human capital influences competitive edge. Drawing on the knowledge-based view, we develop three hypotheses concerning the focal relationships. We employ a mixed-method design combining survey data (156 firms) with 3 in-depth case studies. Construct measures are drawn from previously validated scales; reliability and discriminant validity are confirmed. Furthermore, investment in human capital significantly enhances competitive advantage across the sample. Knowledge flows have a strong positive effect on rent appropriation. Investment in human capital is the principal driver of competitive advantage across the firms in our sample. Explicit knowledge is negatively associated with innovation outcomes in the focal sample, contrary to standard predictions. In addition, the estimates show the contribution of explicit knowledge to organisational learning. Strategic advantage is enhanced by investment in human capital. Appropriability regime attenuates the effect of firm-specific knowledge on rent appropriation. The results indicate that explicit knowledge enhances market value. Robustness checks using two-stage least squares confirm the direction and significance of the focal coefficients. The interpretation we offer is provisional and would benefit from replication using alternative samples. The study contributes to the knowledge-based view literature in three ways. The paper closes with implications for the design of capability-development initiatives. Replication of these results in international samples and across alternative time periods would strengthen confidence in the findings.