Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/the-dynamic-interplay-of-capability-strengths-and-weaknesses-Q05gHzl7c3
References (106)
-
Powell Powell (2001)
Competitive advantage: logical and philosophical considerationsStrategic Management Journal, 22
-
Margaret Peteraf, J. Barney (2003)
Unraveling the resource-based tangleManagerial and Decision Economics, 24
-
(1957)
Leadership in Administration: A Sociological Perspective -
Paul Milgrom, John Roberts (1995)
Complementarities and fit strategy, structure, and organizational change in manufacturingJournal of Accounting and Economics, 19
-
Richard Arend (2004)
The Definition of Strategic Liabilities, and their Impact on Firm PerformanceJournal of Management Studies, 41
-
David Sirmon, M. Hitt, R. Ireland (2007)
Managing Firm Resources in Dynamic Environments to Create Value: Looking Inside the Black BoxAcademy of Management Review, 32
-
Simons Simons, Pelled Pelled, Smith Smith (1999)
Making use of difference: diversity, debate and decision comprehensiveness in top management teamsAcademy of Management Journal, 42
-
M. Hitt, L. Bierman, K. Shimizu, R. Kochhar (2001)
Direct and Moderating Effects of Human Capital on Strategy and Performance in Professional Service Firms: A Resource-Based PerspectiveAcademy of Management Journal, 44
-
K. Sutcliffe (1994)
What Executives Notice: Accurate Perceptions in Top Management TeamsAcademy of Management Journal, 37
-
Ndofor Ndofor, Sirmon Sirmon, He He (2011)
Firm resources, competitive actions, and performance: investigating a mediated model with evidence from the In‐vitro diagnostics industryStrategic Management Journal
-
Nils Stieglitz, K. Heine (2007)
Innovations and the Role of Complementarities in a Strategic Theory of the FirmOrganizations & Markets eJournal
-
Scott Newbert (2008)
Value, rareness, competitive advantage, and performance: a conceptual‐level empirical investigation of the resource‐based view of the firmSouthern Medical Journal, 29
-
Richard Arend (2008)
Differences in RBV strategic factors and the need to consider opposing factors in turnaround outcomesManagerial and Decision Economics, 29
-
B. Johns, W. Hogan (1961)
A THEORY OF THE GROWTH OF THE FIRMEconomic Record, 37
-
G. George (2005)
Slack Resources and the Performance of Privately Held FirmsS&P Global Market Intelligence Research Paper Series
-
Jacobides Jacobides, Winter Winter (2005)
The coevolution of capabilities and transaction costs: explaining the institutional structure of productionStrategic Management Journal, 26
-
J. Black, K. Boal (2007)
Strategic resources: Traits, configurations and paths to sustainable competitive advantageSouthern Medical Journal, 15
-
Sirmon Sirmon, Hitt Hitt (2009)
Contingencies within dynamic managerial capabilities: interdependent effects of resource investment and deployment on firm performanceStrategic Management Journal, 30
-
Danneels Danneels (2008)
Organizational antecedents of second order competencesStrategic Management Journal, 29
-
David Sirmon, Steve Gove, M. Hitt (2008)
Resource Management in Dyadic Competitive Rivalry: The Effects of Resource Bundling and DeploymentAcademy of Management Journal, 51
-
G. Waring (1996)
Industry Differences in the Persistence of Firm-Specific ReturnsThe American Economic Review, 86
-
Gautam Ray, J. Barney, W. Muhanna (2004)
CAPABILITIES, BUSINESS PROCESSES, AND COMPETITIVE ADVANTAGE: CHOOSING THE DEPENDENT VARIABLE IN EMPIRICAL TESTS OF THE RESOURCE-BASED VIEWSouthern Medical Journal, 25
-
E. Penrose (1960)
The theory of the growth of the firm twenty-five years after -
J. Chan, R. Litschert (1994)
Environment-strategy relationship and its performance implications: An empirical study of theStrategic Management Journal, 15
-
Schendel Schendel (1994)
Strategy: search for new paradigmsStrategic Management Journal, 15
-
Robert Wiggins, T. Ruefli (2002)
Sustained Competitive Advantage: Temporal Dynamics and the Incidence and Persistence of Superior Economic PerformanceOrgan. Sci., 13
-
Wernerfelt Wernerfelt (1984)
A resource‐based view of the firmStrategic Management Journal, 5
-
C. Grimm, Ken Smith (1997)
Strategy as action : industry rivalry and coordination -
Ingemar Dierickx, Karel Cool (1989)
Asset stock accumulation and sustainability of competitive advantageManagement Science, 35
-
T. Powell (2001)
Competitive advantage: logical and philosophical considerationsSouthern Medical Journal, 22
-
Jay Barney (2001)
IS THE RESOURCE-BASED " VIEW " A USEFUL PERSPECTIVE FOR STRATEGIC MANAGEMENT RESEARCH ? -
T. Powell (2003)
Strategy without ontologyStrategic Management Journal, 24
-
David Sirmon, M. Hitt (2009)
Contingencies within Dynamic Managerial Capabilities: Interdependent Effects of Resource Investment and Deployment on Firm PerformanceSouthern Medical Journal, 30
-
Stieglitz Stieglitz, Heine Heine (2007)
Innovations and the role of complementarities in a strategic theory of the firmStrategic Management Journal, 28
-
(2003)
Econometric Analysis (5th edn) -
D. Schendel (2007)
Introduction to the summer 1994 special issue—‘strategy: Search for new paradigms’Southern Medical Journal, 15
-
A. Carmeli, Ashler Tishler (2004)
The relationships between intangible organizational elements and organizational performanceSouthern Medical Journal, 25
-
H. Volberda, Robert Morgan, Patrick Reinmoeller, M. Hitt (1994)
Strategic Management: Competitiveness and Globalization -
Hoskisson Hoskisson, Cannella Cannella, Tihanyi Tihanyi, Faraci Faraci (2004)
Asset restructuring and business group affiliation in French civil law countriesStrategic Management Journal, 25
-
H. Greve (2003)
A Behavioral Theory of R&D Expenditures and Innovations: Evidence from ShipbuildingAcademy of Management Journal, 46
-
Javier Gimeno, Carolyn Woo (1996)
Hypercompetition in a Multimarket Environment: The Role of Strategic Similarity and Multimarket Contact in Competitive De-EscalationOrganization Science, 7
-
L. Thomas (1996)
The Two Faces of Competition: Dynamic Resourcefulness and the Hypercompetitive ShiftOrganization Science, 7
-
Ming-Jer Chen, Kuo-hsien Su, Wenpin Tsai (2007)
Competitive Tension: The Awareness-Motivation-Capability PerspectiveAcademy of Management Journal, 50
-
J. Morrow, David Sirmon, M. Hitt, Tim Holcomb (2007)
Creating Value in the Face of Declining Performance: Firm Strategies and Organizational RecoveryERN: Other IO: Empirical Studies of Firms & Markets (Topic)
-
Danny Miller (1993)
THE SIMPLICITY OF COMPETITIVE REPERTOIRES: AN EMPIRICAL ANALYSIS., 1993
-
Constance Helfat, Margaret Peteraf (2003)
The dynamic resource-based view: capability lifecyclesStrategic Management Journal, 24
-
Walter Ferrier (2001)
Navigating the Competitive Landscape: The Drivers and Consequences of Competitive AggressivenessAcademy of Management Journal, 44
-
Walter Ferrier, Cormac Fhionnlaoich, Ken Smith, C. Grimm (2002)
The impact of performance distress on aggressive competitive behavior: a reconciliation of conflicting viewsManagerial and Decision Economics, 23
-
M. Lieberman, Rajeev Dhawan (2005)
Assessing the Resource Base of Japanese and U.S. Auto Producers: A Stochastic Frontier Production Function Approach -
Wiggins Wiggins, Ruefli Ruefli (2005)
Schumpeter's ghost: is hypercompetition making the best of times shorter?Strategic Management Journal, 26
-
R. Rumelt (1984)
Towards a Strategic Theory of the Firm -
T. Wall, J. Michie, M. Patterson, S. Wood, M. Sheehan, C. Clegg, M. West (2004)
On the validity of subjective measures of company performance, 57
-
D. Hambrick, P. Mason (1984)
Upper Echelons: The Organization as a Reflection of Its Top ManagersAcademy of Management Review, 9
-
Cynthia Montgomery (1995)
Of Diamonds and Rust: A New Look at Resources -
Bettis Bettis, Hitt Hitt (1995)
The new competitive landscapeStrategic Management Journal, 16
-
Y. Kor, Joseph Mahoney (2005)
How Dynamics, Management, and Governance of Resource Deployments Influence Firm-Level PerformanceSouthern Medical Journal, 26
-
David Deephouse (1998)
To Be Different or to Be the Same? It's a Question (and a Theory) of Strategic Balance -
Javier Gimeno (1999)
Reciprocal threats in multimarket rivalry: staking out ‘spheres of influence’ in the U.S. airline industryStrategic Management Journal, 20
-
George George (2005)
Slack resource and the performance of privately held firmsAcademy of Management Journal, 48
-
Danny Miller, R. Eisenstat, Nathaniel Foote (2002)
Strategy from the inside Out: Building Capability-Creating OrganizationsCalifornia Management Review, 44
-
T. Crook, D. Ketchen, James Combs, S. Todd (2008)
Strategic resources and performance: a meta‐analysisSouthern Medical Journal, 29
-
B. Wernerfelt (1984)
A Resource-Based View of the FirmSouthern Medical Journal, 5
-
Black Black, Boal Boal (1994)
Strategic resources: traits, configurations and paths to sustainable competitive advantageStrategic Management Journal, 15
-
R. Hoskisson, Albert Cannella, L. Tihanyi, Rosario Faraci (2004)
Asset restructuring and business group affiliation in French civil law countriesSouthern Medical Journal, 25
-
West West, DeCastro DeCastro (2001)
The Achilles heel of firm strategy: resource weakness and distinctive inadequaciesJournal of Management Studies, 38
-
Daniel Levinthal, J. March (1993)
The myopia of learningSouthern Medical Journal, 14
-
Priem Priem (2007)
A customer perspective on value creationAcademy of Management Review, 32
-
Powell Powell (2002)
The philosophy of strategyStrategic Management Journal, 23
-
T. Powell (2002)
The Philosophy of StrategySouthern Medical Journal, 23
-
Robert Wiggins, T. Ruefli (2005)
Schumpeter's ghost: Is hypercompetition making the best of times shorter?Southern Medical Journal, 26
-
Thomas Thomas (1996)
Dynamic resourcefulness and the hypercompetitive shiftOrganization Science, 7
-
H. Ndofor, David Sirmon, Xiaoming He (2011)
Firm resources, competitive actions and performance: investigating a mediated model with evidence from the in‐vitro diagnostics industrySouthern Medical Journal, 32
-
D. Mueller (1986)
Profits in the long run: Index -
W. Barnett, D. McKendrick (2004)
Why are Some Organizations More Competitive than Others? Evidence from a Changing Global MarketAdministrative Science Quarterly, 49
-
D. Mueller (1986)
Profits in the long run: Acknowledgments -
Kor Kor, Mahoney Mahoney (2005)
How dynamics, management, and governance of resource deployments influence firm‐level performanceStrategic Management Journal, 26
-
Walter Ferrier, Ken Smith, C. Grimm (1999)
The Role of Competitive Action in Market Share Erosion and Industry Dethronement: A Study of Industry Leaders and ChallengersAcademy of Management Journal, 42
-
Carmeli Carmeli, Tishler Tishler (2004)
The relationship between intangible organizational elements and organizational performanceStrategic Management Journal, 25
-
Richard Priem (2007)
A Consumer Perspective on Value CreationAcademy of Management Review, 32
-
Castanias Castanias, Helfat Helfat (2001)
The managerial rents model: theory and empirical resultsJournal of Management, 27
-
Sirmon Sirmon, Hitt Hitt, Ireland Ireland, Gilbert Gilbert (2011)
Resource orchestration to create competitive advantage: breadth, depth, and life cycle effectsJournal of Management.
-
Karel Cool, James Henderson (1998)
Power and Firm Profitability in Supply Chains: French Manufacturing Industry in 1993Strategic Management Journal, 19
-
A. Oliveira, Julie Adams (2007)
A new competitive landscapePetroleum review, 61
-
James Thompson (1967)
Organizations in Action -
B. Wernerfelt, Aneel Karnani (1984)
Competitive Strategy Under Uncertainty., 1984
-
R. Castanias, Constance Helfat (2001)
The managerial rents model: Theory and empirical analysisJournal of Management, 27
-
David Sirmon, M. Hitt, R. Ireland, B. Gilbert (2010)
Resource Orchestration to Create Competitive AdvantageJournal of Management, 37
-
Levinthal Levinthal, March March (1993)
The myopia of learningStrategic Management Journal, 14
-
Ray Ray, Barney Barney, Muhanna Muhanna (2004)
Capabilities, business processes, and competitive advantage: choosing the dependent variable in empirical tests of the resource‐based viewStrategic Management Journal, 25
-
Richard Arend (2003)
Revisiting the logical and research considerations of competitive advantageSouthern Medical Journal, 24
-
M. Porter (1985)
Competitive Advantage: Creating and Sustaining Superior Performance -
Crook Crook, Ketchen Ketchen, Combs Combs, Todd Todd (2008)
Strategic resources and performance: a meta‐analysisStrategic Management Journal, 29
-
Walter Ferrier, D. Lyon (2004)
Competitive repertoire simplicity and firm performance: The moderating role of top management team heterogeneityManagerial and Decision Economics, 25
-
Newbert Newbert (2008)
Value, rareness, competitive advantage, and performance: a conceptual‐level empirical investigation of the resource‐based view of the firmStrategic Management Journal, 29
-
J. Barney (1991)
Firm Resources and Sustained Competitive AdvantageJournal of Management, 17
-
Ming-Jer Chen, Danny Miller (1994)
Competitive attack, retaliation and performance: An expectancy-valence frameworkStrategic Management Journal, 15
-
Max Chen (1996)
Competitor analysis and interfirm riva-lry: toward a theoretical integration -
D. Leonard (2011)
Core Capabilities and Core Rigidities: A Paradox in Managing New Product Development -
G. Castrogiovanni (1991)
Environmental Munihcence; A Theoretical AssessmentAcademy of Management Review, 16
-
Rodolphe Durand (2002)
Competitive advantages exist: A critique of Powell -
Erwin Danneels (2008)
Organizational antecedents of second‐order competencesSouthern Medical Journal, 29
-
C. Armstrong, K. Shimizu (2007)
A Review of Approaches to Empirical Research on the Resource-Based View of the Firm†Journal of Management, 33
-
David Sirmon, M. Hitt (2003)
Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family FirmsEntrepreneurship Theory and Practice, 27
-
Donice Knight, C. Pearce, Ken Smith, Judy Olian, H. Sims, Ken Smith, P. Flood (1999)
Top management team diversity, group process, and strategic consensusStrategic Management Journal, 20
-
R. Veliyath (1996)
Hypercompetition: Managing the Dynamics of Strategic ManeuveringAcademy of Management Review, 21
-
M. Jacobides, S. Winter (2005)
The Co-evolution of Capabilities and Transaction Costs: Explaining the Institutional Structure of ProductionNew Institutional Economics
- Publisher
- Wiley
- Copyright
- Copyright © 2010 John Wiley & Sons, Ltd.
- ISSN
- 0143-2095
- eISSN
- 1097-0266
- DOI
- 10.1002/smj.893
- Publisher site
- See Article on Publisher Site
Abstract
Foundational RBV work suggests that firms possess capabilities that represent strengths and others that represent weaknesses. In contrast, contemporary research has examined capability strengths while largely ignoring weaknesses. Addressing this oversight, we examine the direct and integrated effects of sets of capability strengths and capability weaknesses on competitive advantage and its empirical correlate—relative performance. Additionally, we explore how environmental and firm‐specific factors influence change in these drivers of competitive advantage over time. Results suggest that weakness sets have a negative effect on relative performance, while strength sets have an increasingly positive effect. The integrative effects of strength and weakness sets affect relative performance in a complex manner. For example, while high strength/low weakness firms perform at high levels, firms integrating high strength with high weakness perform well, but experience considerably more variance in their realized outcomes. Lastly, we find that the strength and weakness sets change significantly over time in markets where competition is more intense, thereby undermining the durability of competitive advantage. Our theory and results indicate that achieving temporary advantage is more difficult than previously thought and that the erosion of advantage occurs routinely as a result of dynamic and interactive rivalry. Copyright © 2010 John Wiley & Sons, Ltd.
Journal
Strategic Management Journal – Wiley
Published: Dec 1, 2010