How can David orchestrate resources to enhance firm performance? A dynamic approach to coping with resource constraints
- 주제(키워드) Dynamic resource orchestration , Technology , Market , Focus escalation , Focus alternation , Firm performance
- 주제(기타) Business
- 주제(기타) Development Studies
- 주제(기타) Management
- 설명문(일반) [Lee, Juil] Univ Ulsan, Dept Business Adm, 93 Daehak Ro, Ulsan, South Korea; [Kim, Sang-Joon] Ewha Womans Univ, Ewha Sch Business, 52 Ewhayeodae Gil, Seoul 03760, South Korea
- 등재 SSCI, SCOPUS
- 발행기관 ELSEVIER SCI LTD
- 발행년도 2021
- 총서유형 Journal
- URI http://www.dcollection.net/handler/ewha/000000182335
- 본문언어 영어
- Published As http://dx.doi.org/10.1016/j.lrp.2021.102090
초록/요약
Given that the possession of abundant resources does not always guarantee superior firm performance, this study proposes a dynamic approach to enhancing firm value. Building on the resource orchestration thesis, we investigate how firms facing resource constraints enhance their capabilities over time by orchestrating resources and how this resource orchestration can play a role in improving firm performance. Using the dynamic perspective, this study identifies four resource orchestration modes, which are specified based on how a given firm dynamically allocates its resources to technology (enacted by R&D activities) and marketing (enacted by advertising activities). Accordingly, we claim that firms with resource constraints can enhance their performance by escalating or altering their resources over time. To test our hypotheses, we used a sample of 4078 small and medium-sized enterprises in manufacturing industries between 1984 and 2018. We found that focus escalation for technology positively affects firm performance, captured by Tobin's q, and that focus alternation toward either technology or market is positively related to firm performance. Finally, we discuss the theoretical and practical implications of our findings.
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