Sustainable competitive advantage: combining institutional and resource-based views

Article Abstract:

Resource-based strategic management focuses on attributes of resources and the strategic factor markets from which they are obtained to describe firm heterogenicity/sustainable advantage. A study created a model of firm heterogenicity/sustainable advantage that integrates the social context upon which resource selection decisions are embedded. It is argued that resource selection/competitive advantage are deeply affected at the individual, organizational and inter-organizational level by the institutional context of resource decisions. The institutional context pertains to the rules, norms and beliefs surrounding economic activity that define or compel socially acceptable economic behavior. It is believed that firms' ability to generate rents from resources/capabilities will depend mainly on their effectiveness in handling the social context of these resources/capabilities.

Social aspects, Planning, Business enterprises, Strategic planning (Business)

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Operational flexibility and market valuation of earnings

Article Abstract:

A study was conducted to investigate whether or not operations in many geographic locations that enable firms to respond to country-specific environmental shocks and fluctuations have a payoff for companies specifically in terms of the link between their stock returns and accounting earnings. It found that the securities market reacts more to the earnings changes of multinational firms which have subsidiaries in many geographical locations but limit their concentration in any one foreign nation than it does to the earnings changes of domestic and other multinational enterprises. Multinational firms with a broad but less concentrated network achieve a positive net value effect of operational flexibility and associated costs.

Foreign operations, International business enterprises, Multinational corporations, Corporations

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Alliances and networks

Article Abstract:

The social networks within which firms are embedded determine the reasons why they enter strategic alliances and their choice of partners, the ways by which they structure them, and how they manage and change these alliances over time. The success of alliances and the performance benefits that firms derive from them are also defined by the social context in which these firms are situated. Social networks act as information channels that enable companies to discover new alliance opportunities as well as set limits for their future actions. Strategic alliances refer to voluntary partnerships between companies for the sharing, exchange or joint development of products, services and technologies.

Analysis, Social networks, Strategic alliances (Business)

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