What drives firm performance: environment or capabilities?

O’Regan, Nicholas; Kluth, Carole; Parnell, John A.

doi:10.1002/jsc.901

Cited by 9 publications

(6 citation statements)

References 51 publications

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“…The increased emphasis on NMS as an integrated part of an organization's broad strategic effort rekindles a decades-old debate over the relative influence of industry and firm-specific factors on organizational performance (Karniouchina et al, 2013). The fallout from this debate transitioned the field from an industrial organization orientation to one that focuses on firm-level resources and capabilities (O'Regan et al, 2011;Barney, 1996). Regardless of one's perspective on integration, MS and NMS represent distinct paths to firm performance (Bach and Allen, 2010;dos Reis et al, 2012;Henisz and Zelner, 2012;Lux et al, 2011;Cavazos and Rutherford, 2012;Vázquez-Maguirre and Hartmann, 2013).…”

Section: Discussionmentioning

confidence: 99%

Nonmarket and market strategies, strategic uncertainty and strategic capabilities

Parnell

2018

MRR

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Purpose Amidst rapid development in emerging economies, greater emphasis on public–private partnerships and a more complex regulatory environment, nonmarket strategy (NMS) is now widely viewed as a key component of a firm’s overall strategy. This paper aims to investigate how nonmarket and market strategies are influenced by strategic uncertainties and capabilities and ultimately drive firm performance. Design/methodology/approach A survey addressing strategic uncertainties, capabilities, NMS and market strategy and firm performance was administered online to 193 practicing managers in the USA. Measures for competitive strategy (i.e. cost leadership and differentiation), NMS, management and marketing capabilities, competitive and technology uncertainties and firm performance were adopted from or based on previous work. Hypotheses were tested via SmartPLS. Findings Emphasis on NMS was linked to high marketing capability, high competitive uncertainty and high technology uncertainty. Cost leaders were more likely than differentiators to emphasize on NMS, although all three strategies were positive drivers of performance. NMS appears to be viewed as a part of an integrated strategic approach by managers in many organizations. Research limitations/implications The sample included mangers in multiple industries. Self-typing scales were used to assess strategic emphasis and firm performance. Practical implications Emphasis on NMS can promote firm performance, but the relationship is complex. Strategic managers should align the NMS with organizational capabilities and a market-oriented strategy appropriate for the firm. Originality/value This paper provides empirical support for a model linking select strategic uncertainties, capabilities, market strategy and NMS and firm performance. It supports NMS as a key performance driver, but with links to uncertainties and capabilities that differ from those of market strategies.

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Section: Discussionmentioning

confidence: 99%

Nonmarket and market strategies, strategic uncertainty and strategic capabilities

Parnell

2018

MRR

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“…Scholars have long evaluated the relative influence of industry and firm-specific factors on firm performance. The complex resolution of this debate is linked to the shift from I/O to organizational resources and capabilities over the past few decades (Barney, 1996;O'Regan et al, 2011). Several limitations should be noted.…”

Section: Discussionmentioning

confidence: 99%

Strategic political emphasis, strategic capabilities and uncertainty

Parnell

2015

Journal of Strategy and Management

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Purpose – With heightened regulations in many nations, increasing political influence, greater emphasis on government-business partnerships, and the rapid development of emerging markets, the notion of nonmarket strategy (NMS) is now widely viewed as a key component of a firm’s overall strategic orientation. The purpose of this paper is to investigate factors associated with strategic political emphasis (SPE), a key part of NMS. Design/methodology/approach – A survey instrument including items related to competitive strategy, environmental uncertainty, strategic capability, performance, and SPE was administered to 275 managers in the USA. Strategy along Porter’s typology, strategic capabilities, uncertainty, and performance were measured via existing scales. Items were created to assess SPE. Findings – Managers in firms with greater SPE also reported greater uncertainty about competition and markets, and lower capabilities with regard to management and technology. Managers in organizations with weaker market orientations (MOs) – including greater uncertainty about competition and markets, and lower capabilities in management and technology – emphasized greater SPE. Managers reporting lower capability levels in their firms were more likely to report higher SPE and to have increased SPE in the last decade. Select uncertainties and capabilities – not competitive strategy per se – appears to have prompted an increase in SPE in these firms. Originality/value – An effective NMS is vital from the perspectives of both profit maximization for shareholders and the satisfaction of broader, social objectives. However, many executives are trained to excel in the market arena and may not have the skill set and temperament necessary for success in NMS and specifically, the political arena. Moreover, SPE and market strategies are not always consistent, challenging executives to integrate and balance the two orientations.

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“…Indeed, evidence has been accumulating (e.g. O’Regan et al 2011; Srivastava 2005) which suggests that firm-specific factors of production as the source of competitive advantage outweigh factors of exchange. Yet the RBV has not provided a definitive answer to how and why this is the case, and so Marx’s transformation of values into production prices, discussed below, will be used to this effect.…”

Section: The Rbv In the Context Of Marx’s Value Theorymentioning

confidence: 99%

“…The RBV is the attempt within mainstream management theory to analyse production, and thus economic performance, as the result of firm-specific factors (e.g. O'Regan et al 2011). This means that the RBV constitutes a natural playing field for Marx.…”

Section: Introductionmentioning

confidence: 99%

The significance of Marx’s value for strategy theory: Competitive advantage and the issue of tautology within the resource-based view of the firm

Dassler¹

2016

Capital & Class

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Marxian thinking following the TSSI (temporal single system interpretation) of Marx's work is applied to refute the allegation of a tautology in the resource-based view of the firm, paired with the provision of an explanation of how and why resources create value, where resources are synonymous with Marx's categories of constant and variable capital. Refuting the allegation naturally leads to the Holy Grail of resource-based thinking: the question of what, conceptually, constitutes a firm's competitive advantage within the industry context. This article achieves its objectives by tying the resource-based view into Marx's theory of value.

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What drives firm performance: environment or capabilities?

Abstract: This study of plastics processing companies in the United Kingdom finds little evidence to support a link between the competitive environment and firm performance whereas differences in performance are more likely attributable to firm‐specific factors.

Cited by 9 publications

References 51 publications

Nonmarket and market strategies, strategic uncertainty and strategic capabilities

Nonmarket and market strategies, strategic uncertainty and strategic capabilities

Strategic political emphasis, strategic capabilities and uncertainty

The significance of Marx’s value for strategy theory: Competitive advantage and the issue of tautology within the resource-based view of the firm

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