Narrow Results

This study examines the effect of digital capability on firm performance and firm growth. We apply the resource-based view and especially its expansion of the dynamic capabilities perspective to illustrate how digital capability is positively related to firm performance and firm growth, and how firm size is a relevant factor in explaining digital capability in incumbent SMEs. The context of this study is Finnish SMEs. The data were gathered from 242 SME owner-managers and analysed with structural equation modelling. The results show that smaller firms have less digital capability than larger SMEs and that smaller firms struggle with performance indicators. Digital capability is positively related to firm performance and firm growth. Our results indicate that although several factors explain and alter the course of firm growth, digital capability can boost the opportunity creation process, and aid survival in the face of competition. Digital capability is an important resource in SMEs and allows firms to safeguard the sustainability of their business model. We argue that digital capability is strongly related to SME’s management practices and SME owner/manager’s commitment to responding to digital transformation. This research sheds light on the importance of strategic leaders’ perceptions of digital capability on incumbent SMEs’ competitive advantage, and contributes both entrepreneurship theory and practice.

This paper seeks to develop and test a model to examine the relationships between, technical aspects of IS resources (IS alignment, IS resources technical quality, IS advancement), supply chain process integration, and firm performance. A questionnaire-based survey was conducted to collect data from 227 supply chain, logistics, or procurement/purchasing managers of leading manufacturing and retail organizations. Drawing on resources-based view of the firm, and through extending the concept of process integration in supply network, as well as broadening the scope of role of IS resources in relation to process integration and performance gain from the focal firm to the entire supply chain, we found that supply chain process integration is an important multidimensional intermediate organizational capability through which the value of IS resources for supply chain management can be materialized. This capability serves as a catalyst in transforming the value of technical aspects of IS resources into higher performance gain for a firm. Thus, the importance of formation of all dimensions of this capability across supply network should be realized. Moreover, the result suggests that the technical aspects of IS resources need to be jointly developed by supply partners to effectively form supply chain capabilities.

This paper tests a primary postulate of the Resource-Based View (RBV) of Information Technology (IT) business value. From this perspective, IT is not rare but pervasive, and it is only the combination of investments with other resources that makes the investment inimitable. Therefore, the effect of IT on firm performance cannot be direct effects, but rather firm performance can only be affected when IT expenditures are combined with other investments. This study tests this theory using panel data of large firms spanning seven years. Firm-level data is gathered from Compustat and matched to Information Systems (IS) Budget data. The results do not support the RBV postulate that IT Expenditure cannot have direct competitive advantage but must be combined with expenditure on other assets to effect firm performance. Instead, the results support the opposing hypotheses: IT expenditure and capital expenditures have independent, direct effects on firm revenue as well as firm profit, even in the presence of the interaction variable. The results imply that IT investments may be a source of direct competitive advantage, unlike the postulate of the RBV theorists. This may be because an IT system has embedded knowledge and creates knowledge, making it rare and imperfectly imitable. Rather than investing in generic IT systems and trying to obtain uniqueness from investments in complementary resources, firms can try embedding firm-specific knowledge when designing or modifying their systems and using their systems to create knowledge. This is the first study to test the RBV postulate that value from IT comes only with the combination of IT investments and investments in other assets and not from direct effects. By disproving this postulate, this study opens the door to new hypotheses based on knowledge in and from IT systems.

Why and how do Knowledge Management Systems (KMS) contribute to the strategic competitiveness of organizations? This paper reviews the literature and proposes a model in which KMS is viewed from three different perspectives: (1) crucial resource; (2) driver of absorptive capacity; and (3) innovation adopted by the organization. The paper critiques the method used by KMS researchers whereby co-variation of KMS and competitiveness is utilized to study the relationship between these variables. The model proposed here is a multi-stage process. The successful use of KMS generates intermediate outcomes that in turn impact the organization and produces improved strategic competitiveness. The different approaches to KMS and the stage-process allow for the unique attributes of knowledge systems, different from information systems. The advantages and limitations of the model are discussed.

This research aims to develop a conceptual framework in order to inquire into the dynamic growth process of university spin-outs (hereafter referred to as USOs) in China, attempting to understand the configuration of capabilities that are necessary for dynamic growth. Based on the extant literature and empirical cases, the study attempts to address the following question: How do USOs in China build and configure the innovation capabilities to cope with the dynamic growth? This paper aims to contribute to the existing literature by providing a theoretical discussion on the USOs' dynamic entrepreneurial process, by investigating the interconnections between innovation problem-solving and the required configuration of innovation capabilities in four growth phases. Further, it takes particular interest in the integrative capabilities and their impact on the USOs' entrepreneurial innovation process, in terms of knowledge integration, alliance, venture finance and venture governance. To date, studies have investigated the dynamic development process of USOs in China and have recognized the heterogeneity of USOs. Yet studies of capabilities that are required for rapid growth remain sparse. Addressing this research gap will be of great interest to entrepreneurs, policy-makers and venture investors.

This paper aims to contribute to knowledge on start-up cluster development by describing the core resource configurations in the development trajectory of start-up clusters in an emergent country. This research involves two start-up clusters in the Brazilian context. The results provide a framework formed by four stages that indicates the trajectory of start-up cluster development from the basic level, in which the most evident resources are tangible and endogenous, to the more advanced level, which comprises intangible and exogenous resources. In the fourth stage, start-up clusters improve resources, such as quality of life, cultural diversity and political and economic conditions to foster entrepreneurship and innovation.

This paper looks at the vital role of industrial research and development (R&D). The increased outsourcing of industrial R&D is contrasted with a resource-based view of competitive advantage which maintains capabilities that are valuable, rare, imitable, and non-substitutable (VRIN), and should be internalized in the firm. Traditional business formation literature is also supportive of keeping R&D “inhouse”. R&D outsourcing research is leveraged to posit possible reasons for the increased amount of outsourced R&D. Testable propositions are included that look at factors for R&D outsource decisions and also the impact of these decisions on firm performance. An R&D entropy statistic is introduced as well as several R&D characteristics useful in the decision-making process to create R&D.

Incumbent firms’ competitiveness largely depends on the ability to develop digital innovation as novel combination of digital and physical components. This paper provides a better understanding of value creation through digital innovation, focussing on market offerings from incumbent firms. Based on the insights of an exploratory multiple case study with seven cases from the automotive, machine engineering, and consumer goods industries in Germany, we explain the multi-sided changes required for the development and management of digital innovations. Afterwards, we contribute to the further theorization of digital innovation. According to our empirical findings, we decided to discuss the applicability of the resource-based and competence-based approach.

This paper investigates the relevance of patents as a competitive advantage with regard to the luxury industry. Within the framework of an explorative research design, more than two thousand patents were analyzed, using the international patent classification (IPC) to cluster those patents. The analysis shows that the sole ownership of patents as a resource is not sufficient to achieve business success. In addition, the findings suggest a two-sided relevance of patents within the luxury goods industry as two main groups can be identified: First, traditional manufacturers focusing more on craftmanship, secrecy, and tradition than on novelties and patents. Second, large business groups and high technology businesses dominating the IPC group G04 and emphasizing on the latest technology as well as on patents. Furthermore, the internationalization is also reflected in the patent applications: European patents within category G04 have gained in importance over the last 20 years, while national patents have declined.

Licensing technologies are one of the main ways to produce and bring academic research to society. Despite previous studies’ dedicated efforts to identify licensing probabilities, the question of how the expertise and prestige that a university has in a given technological field influences the licensing probabilities is still little addressed. This article aims to identify information in patent documents to estimate the probabilities of licensing technologies produced at the university. For that, we performed a data mining of licensed and unlicensed patents from an important Brazilian University (n = 1,578). We estimated the licensing probabilities using the Logistic Regression technique, based on the Maximum Likelihood Estimation. The results suggest that the variables of know-how in the main field and Technological strength in the main field are the most important/influential variables in estimating the probabilities of licensing a given patent. The main conclusion obtained from the results is that: universities, to obtain more licenses, must increase their know-how (expertise) in some technological fields, maintaining a reasonable level between specialization and diversification. Additionally, the higher the citations received (prestige/recognition) by a university in a given technological field, the greater the probability of patent licensing in that technological field. In terms of practical contributions, this study suggests that: investments in specific technological fields generate more competitive advantages for the university and, thus, more technological successes.

This article explores factors affecting the survival and exit routes of new firms created in 2004 using data from the Kauffman Firm Survey. We draw upon the Resource-Based View to test several hypotheses regarding the impact of both tangible and intangible resources on new firm survival in both service and non-service firms. We also distinguish between two types of exit: closures (permanently stopped operations) and mergers or acquisitions. Our results reveal that, although service and non-service firms may differ in terms of industry structure, the fundamental resources that contribute to their survival are the same: education, work and life experience and adequate levels of startup financial capital. In spite of these similarities, our results did reveal industry differences in terms of exit. We found serial entrepreneurs in the service sector were more likely to exit through merger or acquisition. Conversely, intellectual property decreased the likelihood of exit through merger or acquisition for non-service firms. Thus, our findings revealed a link between human capital, industry and exit route for this sample of new firms.

Failure among SMEs has been attributed to size, age, location and being part of particular industries and not part of a network. These determinants, if used as surrogates for resources, suggest firms that lack such resources are more susceptible to failure. Using the resource-based view of the firm, this paper aims to do a post-mortem examination on the attributes of failed SMEs by analyzing data of more than 13,000 failed firms in the UK between 1999 and 2009. The findings reveal that failure is not merely a function of lack of resources. Although these findings shed new light on attributes of failed SMEs, there are still some limitations to the work that must be taken into consideration when applying the results.

This study investigates the adoption of technological innovation in a least-developed economy: Lao People's Democratic Republic. World Bank Survey data encompassing nearly 380 enterprises from 2009 and 2012 were used to analyze the effects of collaboration between smaller domestic firms and larger firms, both foreign and domestic. Collaboration with larger firms is statistically significant for adopting new technologies and for adopting new processes, with the former significant for sales. In addition, foreign ownership is statistically significant for sales in one of the OLS estimates. This suggests small and medium enterprises (SMEs), particularly the latter at this point in Lao PDR, would benefit from membership in global value/supply chains.

This paper examines how rural female entrepreneurs in Lebanon navigate challenges and opportunities amidst economic crises. It aims to understand how they leverage resources to overcome barriers and enhance their entrepreneurial potential, offering insights for fostering sustainable entrepreneurship in crisis-affected regions. This study employs Integrative Qualitative Methods, combining participatory action research (PAR) and narrative inquiry, to explore the motivations, experiences and aspirations of rural female entrepreneurs in Lebanon. Amidst severe economic crises, 28 female entrepreneurs participated in a three-year program supporting their businesses. The findings indicate that rural female entrepreneurs in Lebanon are primarily motivated by family sustainability, social effect and personal fulfillment. They demonstrate significant adaptability to market changes and are able to leverage support networks to manage resources effectively. Strategic resource allocation, communication and collaboration are key to their success. Overall, these findings highlight the resilience and strategic acumen of rural female entrepreneurs, emphasizing the importance of ongoing support for economic growth and community development.

Recently, the electricity industry in Spain has experienced a deep transformation, aimed to improve the degree of concurrence between the operating firms. This change must be explained in the framework of the regional integration of markets with an European scale. The European Union is shaped as a relevant region in the world energy (and specifically, in electricity) market.

Facing this change, the Spanish electricity firms must adopt a wider business vision, to cope with all the aspects of the new competitive environment in order to obtain business success.

Firms, following the resource-based view, must generate and strengthen the competitive advantage derived from its core competencies. Those competencies, that constitutes the base for the inter-firm heterogeneity, are created (and evolve) from several mechanisms of organisational learning.

Our research tries to show what the business vision of the Spanish electricity firms is, based on the efficient management of its personal, technological and organisational competencies. We have focused on technological competencies, because, in a more competitive scheme, they can support the sustained competitive advantage of the firm. So, we develop a model based on the Strategic Matrix of Technological Competencies (SMTC). The model is tested with a sample of 20 Spanish electricity firms (representing 71.25% of the industry total turnover in 1996). That matrix combines, in a dynamic sense, several scenarios and strategic business units in order to determine the critical technological competencies that the firm must master in each economic situation.

The empirical analysis developed concludes (for the firms in the sample), among other issues, the existence of statistical relationships between certain technological competencies (as "Clean Use of Coal", "Advanced Technologies for Control and Communication", and "Electricity Transmission Technologies"), and several sources of competitive advantage (as the "The firm must difficult its resources' imitability").

In conclusion, facing the new competitive environment (in Spain and in the EU), technological competencies are considered by those firms as sources of competitive advantage. These competencies evolves using several organisational learning systems adopted by the firm. In this changing environment, the SMTC can be a relevant tool for the strategic management of the firms in the electricity industry.

This study articulates and explains the process of resource evolution in long-term new product development collaboration between competing large firms. By adopting a resource-based view of collaboration, the study maps, at a micro level, the evolution of R&D skills within an Italian manufacturer (Olivetti), co-developing mid-range photocopiers with a Japanese manufacturer (Canon), throughout four periods of time (from 1985 to 1998). The study identifies and explores activities leading to resource changes in each period and unravels the underlying explanatory processes behind such behaviour and outcomes. Findings from the study indicate that value in long-term co-development derives from the enduring exchange processes developed throughout the collaboration. The results suggest that investment in processes and mechanisms to adapt and evaluate resources, over time, acts as a critical precursor to effective resource exchange and value creation.

The importance and challenges of supplier–customer cooperation has been widely recognized in the academic literature but the dynamics of such relationship remain understudied. We do not yet fully understand how customer–supplier relationship should be pursued in order to co-create mutual competitive advantage. Our simulation results show that there are differences in absolute profitability and profit distribution between cooperation partners when moving from individual firm-level management to holistic system-based management. We further find that if the supplier manages cooperation from individualistic perspective it is able to achieve the highest short-term profits by sacrificing the profitability of its customer. However, when the supplier acknowledges the profitability logic of its customer, the long-term overall profitability of the cooperation as a whole, i. e., the system, becomes significantly higher than with opportunistic individually-oriented (short-term) management. In described cases, it is actually profitable for the supplier to limit the distribution of its unique resources (e. g., technology).

The knowledge economy is driven by entrepreneurship, and the entrepreneurial university takes on the role of an important catalyst for regional economic and social development. Academics represent key agents of knowledge and technology transfer from university to society. Previous research suggests that academics’ successful engagement in entrepreneurial activities can positively contribute to the development of local society and economy. However, evidence on the antecedents of academic engagement and commercialisation is scarce. This study examines whether aspects related to academics’ human, physical and organisational capital resources influence their engagement in consulting, sponsored research, licensing/assignment of intellectual property (IP) and spin-off creation with industry, government and civil society. The analysis is based on a new and unique data set of 398 individual academic researchers affiliated to South African universities who were awarded a quality rating by South Africa’s National Research Foundation (NRF) and covers the full spectrum of academic disciplines. Data analysis employed generalised linear models (GLMs) and demonstrated that the availability of human, physical and organisational resources relate to the four entrepreneurial activities in different ways. The findings support the concept that individual factors are more significant than institutional factors in determining entrepreneurial activities. A key finding is that academics’ engagement in entrepreneurial activities is primarily influenced by their prior entrepreneurial experiences. The study provides scholars investigating academic entrepreneurship, policy makers and university administrators with the key resource drivers of entrepreneurial activities and may assist them in establishing the appropriate role of institutions and organisations in promoting entrepreneurial activities of academics.

The purpose of the paper is to present the empirical evidence of the innovation capability influencing the operation capability and logistics performance in the Australian courier industry. According to resource-based view, firm capabilities including dynamic capabilities and ordinary capabilities play a vital role in a firm to generate competitive advantages. It is important to understand the role of firm capabilities in order to achieve better performance results. Further, innovation capability is one of the dynamic capabilities, which can be deployed to extend, modify or create the ordinary capability in a firm; operation capability is an ordinary capability in the paper. In addition, the logistics performance is critical for courier firms to deliver value and service to customers. This paper, therefore, gives an attempt to investigate the relationships among innovation capability, operation capability and logistics performance. The results show how innovation capability can coordinate with operation capability in order to influence logistics performance. This provides a starting point for understanding of the role of innovation capability in the Australian courier industry. This has important implications for both managers and academics to improve the logistics performance in the logistics and transport firms. Moreover, the paper makes a contribution to strategic management and innovation management literature.

Innovation partnerships can be a double-edged sword. While they are important vehicles for learning and value creation, such partnerships also increase a firm’s vulnerability to unintended knowledge leakage and imitation by others. In this study, we go beyond previous research by studying the imitation threats induced by innovation partnership portfolios rather than individual alliances. Drawing on the resource-based view, we develop and test a model that links salient structural attributes of partnership portfolios and distinct forms of imitation. Results from our analysis of 803 German manufacturing firms support our prediction that a firm’s probability of being imitated increases with the partnership variety of its portfolio. We also find that firms can mitigate this threat by carefully selecting innovation partners and using appropriation mechanisms.