To read this content please select one of the options below:

A heterogeneous resource based view for exploring relationships between firm performance and capabilities

Wayne S. DeSarbo (Marketing Department, Smeal College of Business, Pennsylvania State University, State College, Pennsylvania, USA)
C. Anthony Di Benedetto (Marketing Department, Fox School of Business Administration, Temple University, Philadelphia, Pennsylvania, USA)
Michael Song (Department of Marketing, Henry W. Bloch School of Business and Public Administration, University of Missouri‐Kansas City, Kansas City, Missouri, USA)

Journal of Modelling in Management

ISSN: 1746-5664

Article publication date: 10 July 2007

3282

Abstract

Purpose

The resource‐based view (RBV) of the firm has gained much attention in recent years as a means to understand how a strategic business unit obtains a sustainable competitive advantage. In this framework, several research studies have explored the relationships between resources/capabilities and firm performance. This paper seeks to extend this line of research by explicitly modeling the heterogeneity of such relations across firms in various different industries in exploring the interrelationships between capabilities and performance.

Design/methodology/approach

A unique latent structure regression model is developed to provide a discrete representation of this heterogeneity in terms of different clusters or groups of firms who employ different paths to achieve firm performance vis‐à‐vis alternative capabilities. An application of the proposed methodology to a sample of 216 US firms were provided.

Findings

Finds that the derived four group latent structure regression solution statistically dominates the one aggregate sample regression function. Substantive interpretation for the findings is provided.

Originality/value

The paper contributes to the understanding of the performance effects of investing in capabilities in the RBV framework, which has previously been lacking, especially in the areas of information technology capabilities.

Keywords

Citation

DeSarbo, W.S., Di Benedetto, C.A. and Song, M. (2007), "A heterogeneous resource based view for exploring relationships between firm performance and capabilities", Journal of Modelling in Management, Vol. 2 No. 2, pp. 103-130. https://doi.org/10.1108/17465660710763407

Publisher

:

Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited

Related articles