Transcript Slide 1
Distinguished Professor of Management, Joe B. Foster Chair in Business Leadership, Mays Business School of Texas A&M University His research actively incorporates and tests dimensions of the Resource Based View (RBV) of the firm, institutional theory and organizational learning theory He is the author or co-author of over 200 journal articles and 26 books Former editor of the Academy of Management Journal. He is currently the co-editor of the Strategic Entrepreneurship Journal In 2001, he received the Irwin Outstanding Educator Award and the Distinguished Service Award from the Academy of Management If you have any questions during the presentation, please type them into the chat window. The presentation will be divided into two parts; after each part there will be a 10-15 minute Q&A section In case of technical problems, this webinar is being archived. Information will be provided via email after the webinar with details on how to access the webinar archive. Industry Institutions The Resource Based View of the Firm Distinctive Competencies (Hrebiniak & Snow, 1982; Hitt & Ireland, 1985, 1986) Ricardian Economics (Ricardo, 1817) Penrosian Economics (Penrose, 1959) Administrative Framework Coordinating Activities of Individuals and Groups Bundle of Productive Resources Wernerfelt (1984) Rumelt (1984) Barney (1986) Seminal Base of the RBV Barney (1991, 2001) Barney (1991) Capabilities that either help a firm to exploit opportunities to create value for customers or to neutralize threats in the environment Capabilities that are possessed by few, if any, current or potential competitors Capabilities that other firms cannot develop easily, usually due to unique historical conditions, causal ambiguity or social complexity Capabilities that do not have strategic equivalents, such as firmspecific knowledge or trust-based relationships Managing Resources Human Capital as a Source of Firm Strategy and Value Creation (Hitt, Bierman, Shimizu & Kochhar, 2001; Hitt, Bierman, Uhlenbruck & Shimizu, 2006) Barney and Arikan (2001) Suggest that Earlier Work Took a “Remarkably Naïve View” of Implementation Issues For the Value to be Realized, Resources Have to be Managed Effectively (Bundled and Leveraged) (Sirmon, Hitt & Ireland, 2007) Sirmon, Gove and Hitt (2008) Isolated Managerial Effects on the Outcomes of Dyadic Competitive Contests Some Resources Are More Flexible Resource Acquisition Is Critical for Inflexible Resources Managerial Bundling Actions with Flexible Resources Are Critical to Competitive Success Managing Resources (cont’d) Adner & Helfat (2003) Dynamic Managerial Resources Asset Orchestration Sirmon & Hitt (2009) Asset Orchestration: Integrating Resource Investments with Resource Deployments (Strategy) Firm Performance Suffers when Managers Resource Investment Decisions Vary from the Norms of Rivals However, When the Resource Investments Support the Strategy Chosen, Deviation from Rivals Enhance Firm Performance Three Bases of Formal and Informal Institutions (Scott, 1995; 2005) Rules (Regulative) Norms (Normative) Culture (Cognitive) Meyer and Rowan (1977) Suggest that Institutions Establish the “Rules of the Game” for Organizations (Firms) North (1990) Suggests that Institutions Influence Economic Exchange. Laws and Regulations Direct Economic Transactions Others Argue that Physical Infrastructure, Human Capital and Economic Development Influence Firm Actions (Dunning, 1988; Porter, 1990; Ghemawat, 2001) So, When Firms Enter New Markets, They Search for and Try to Achieve Legitimacy (Dowling & Pfeffer, 1975; Tolbert & Zucker, 1983) —Laws and Policies to Govern Behavior of Social Actors (Boddewyn, 1988; Dunning, 1994) —Affect Supply and Demand for Capital Resources thereby Influencing Firm Behavior and Performance (Burdekin & Weidenmier, 2001; Orphanides, 2002; Lucas, 2003) —Discretion and Power a Government Maintains over Citizens (Matten & Crane, 2005) —Level and Quality of Physical Support Systems to Facilitate Business Communications and Movement of Goods and Services in the Economy (Khanna & Palepu, 1997, 1999) One of the Most Profound Business Phenomena of the 20th Century Was the International Expansion of Business Activities (Sapienza, Autio, George & Zahra, 2006) Arregle, Miller, Hitt and Beamish (2009) Found that Country and Region’s Institutional Environments Affect the Amount and Type of Foreign Direct Investments Made by Firms Zhu, Hitt, Eden and Tihanyi (2009) Found that a Country’s Formal Institutions Affect the Performance of Cross-Border Acquisitions Miller, Hitt, Webb, Batjargal and Tsui (2009) Found that a Country’s Formal Institutions Influence the Type of Social Networks Developed by Entrepreneurial Firms and the Extent to which they Achieve Growth Please evaluate today’s session-a new browser window will pop up shortly. A link to the archive of today’s session will be sent within 24 hours.