Extending Resource-Based Logic

Abstract

This article argues that resource-based logic can be extended by conceptualizing the firm in resource-investment terms. It establishes that investing in resources is essentially a bilateral process involving managers and the owners of capital and that all resource-investments are necessarily made within an institutional superstructure. As a result, the capital invested into the firm is necessarily highly structured. These ideas are developed in this article from a payments perspective because this perspective allows scholars to explore the ex ante investment decisions that allow firms to grow, and to focus on firms' resource payments, which can be considered a proxy for firms' ex post resource-investments. The article concludes with a discussion of the implications of these ideas, including the implications for performance, theory of the firm, and endogenous growth research.

Exploring a market-like organizational system’s performance by considering the efficiency/effectiveness trade-off in micro-level exchanges

“…The simulation results uncover that the efficiency-focused institution will experience rapid emergence during the early stage but struggle to sustain economic dynamics in the long run. This finding also contributes to the theoretical framework proposed in Zubac et al. (2010) by suggesting that over time, a growth promoting institutional structure may turn into a growth constraining institutional structure, and vice versa.…”

“…Second, the paper solves a major difficulty in determining how economies grow due to the interactions among different psychologies and knowledge bases by specifying a particular way to understand the mechanics of a market-like organizational system’s endogenous growth (Jacobides et al. , 2018; Zubac et al. , 2010) and a configuration of subprocesses that can be linked to high performance (Zubac et al.…”

“…The model proposed in this study addresses resource markets, referred to as applied capital by Zubac and her colleagues (2010), that contain administrative mechanisms and value flows. In this study, another essential concept in Zubac et al. (2010) – financial capital – is taken as a default existence that underlies the existence of a market-like organizational system.…”

“…(2010) – financial capital – is taken as a default existence that underlies the existence of a market-like organizational system. Therefore, the aggregated exchange values resulting from micro-level exchanges provide one illustration on Payments ≡ Revenue ≡ Cost as theorized in Zubac et al. ’s (2010) payments perspective.…”

“…Second, the paper solves a major difficulty in determining how economies grow due to the interactions among different psychologies and knowledge bases by specifying a particular way to understand the mechanics of a market-like organizational system's endogenous growth (Jacobides et al, 2018;Zubac et al, 2010) and a configuration of subprocesses that can be linked to high performance (Zubac et al, 2021). The model proposed in this study addresses resource markets, referred to as applied capital by Zubac and her colleagues (2010), that contain administrative mechanisms and value flows.…”