Session 159

Strategic Factor Markets: Antecedents, Consequences and Dynamics

Track E

Date: Monday, October 12, 2009

 

Time: 12:45 – 14:00

Paper

Room: Meeting Room 4


Session Chair:
Jay Barney, University of Utah

Title: Information, Complementarity, and Resource Complexity in Strategic Factor Markets

Authors

  • Anthony Scime, Purdue University
  • Mona Bahl, Youngstown State University
  • Aldas Kriauciunas, Purdue University
  • Charlotte Ren, Temple University

Abstract: This paper extends strategic factor market theory through the development of an additive model to jointly consider how information and complementarity influence resource-picking. The model incorporates the complexity of the resource and the economic state (over-priced market or under-priced market) in which resource-picking occurs. Our findings indicate that when information advantages and complementarity advantages favor different firms, asymmetries between firms determine resource acquisition and performance. Further, information asymmetry is more influential for high-complexity resources and complementarity asymmetry is more influential for low-complexity resources.

Title: Interactive Effects of Firm Resources and Actions on Performance

Authors

  • David Major, Indiana University
  • Ken Smith, University of Rhode Island
  • Curtis Grimm, University of Maryland
  • Richard D'Aveni, Dartmouth College

Abstract: Though valuable, rare, inimitable, and non-substitutable resources have the potential for enduring impact on performance, it is still unclear how they impact performance. Expressly, how resources combine with firm actions to generate performance for a firm is yet underexplored. This study tests direct and interactive effects of firm resources and actions on performance. Using RBV and competitive dynamics, it examines the extent to which firm resources and firm actions each directly predict variation in performance; and the extent to which the impact of resources on performance is moderated by actions. The study sheds new light on the resource-performance “black box” using a ten-year, longitudinal sample drawn from the US automobile market – consisting of 980 model-years of resource stocks and 3,439 firm competitive actions.

Title: Opportunities and Rents: The Relationship Among Routines, Path Dependence, and Sustained Competitive Advantage

Authors

  • Sharon Alvarez, University of Denver
  • Jay Barney, University of Utah

Abstract: The central assertion of resource-based theory is that valuable and costly to copy resources and capabilities are heterogeneously distributed across competing firms can be sources of sustained competitive advantage. While progress continues in developing the assertions of resource-based theory, relatively little work examines where these resources come from in the first place. This paper links two core resource-based concepts—path dependence and the development of resources and capabilities and routines with ideas developed in entrepreneurship. This paper develops a Bayesian learning model of the path dependent process by which firms build routines in exploiting these different types of opportunities. Routines developed in discovery settings are less likely to have sustained competitive advantage, whereas routines developed in creation settings are likely to have these attributes.

Title: Resource Learning and the Dynamics of Strategic Factor Markets

Authors

  • Thorbjørn Knudsen, University of Southern Denmark
  • Michael Christensen, Strategic Organization Design
  • Nils Stieglitz, Frankfurt School of Finance and Management

Abstract: The strategy literature assumes too much knowledge about resource value among owners and sellers of resources. We relax this assumption and explore resource trading in contexts where both sellers and buyers have limited information about the resources they trade. We develop a modeling structure to study the learning processes of sellers and buyers and how they influence trading on markets for resources. Our results reconcile contradictory empirical evidence showing that trade does not vanish even if buyers of resources are often short-changed. The consideration of resource scarcity, grades of idiosyncratic resources, and different contexts of resource learning (stable technology, continuous or discontinuous technological improvement) offer detailed insights into conditions where resource learning is a source of trading advantage in strategic factor markets.

All Sessions in Track E...

Sun: 10:00 – 11:30
Session 256: Discipline Based Theories: What Do Theories of the Firm Say About Organizational Dynamics
Sun: 13:00 – 14:30
Session 257: Applying Theories: What Does Strategy & Organization Say About Health Care?
Sun: 15:00 – 16:30
Session 258: Integrating Theories of Problem Formation
Sun: 16:30 – 17:30
Session 309: Competitive Strategy, IG Meeting
Mon: 12:45 – 14:00
Session 159: Strategic Factor Markets: Antecedents, Consequences and Dynamics
Session 166: Competitive Strategy and the Business of Science
Mon: 15:45 – 17:00
Session 160: Emerging Strategies in Acquisition
Session 220: Contemporary Challenges to Organization Theory
Mon: 17:15 – 18:30
Session 157: Managerial Cognition and Dynamic Capabilities at the Crossroads: Current Issues and Novel Strands of Development
Session 222: Challenging Traditional Notions of Competitive Strategies and Competitive Advantage
Tue: 10:00 – 11:15
Session 161: Demand-based Approaches to Strategy: The Role of Customers and Communities
Session 163: Resources and Capabilities to Strengthen Alliance Formation and Execution
Tue: 11:30 – 12:45
Session 164: Competitive Strategy and Firm Performance
Session 165: Emerging Organizational Solutions for Exploration Strategies
Tue: 14:30 – 15:45
Session 158: Strategic Change and Dynamic Capabilities
Session 169: Unpacking Sources of Heterogeneity: Market Frictions, Firm Resources, Strategic Actions
Wed: 10:00 – 11:15
Session 216: Industry Evolution and Resource Architecture
Session 217: Designing Organizations to Sustain Performance
Wed: 11:30 – 12:45
Session 214: Managerial Capabilities and the Microfoundations of Strategy


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