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Unraveling asset recombination through the lens of firm-specific advantages: A dynamic capabilities perspective

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  • Lee, Jong Min
  • Narula, Rajneesh
  • Hillemann, Jenny

Abstract

The dynamic capabilities perspective highlights that continuous asset augmentation enables firms to address changing environments and sustain competitiveness. However, the literature is still unclear about the nature, interaction, and configuration of dynamic capabilities, and why not all firms are able to successfully upgrade. We propose that the parallel and ongoing IB discussion on asset recombination and firm-specific advantages (FSAs) sheds light on this debate. Continuous asset upgrading is achievable through asset recombination, but this requires a certain set of ‘recombinant FSAs’. We delve into asset recombination by decomposing it into three different types (namely intra-firm, extra-firm, and network) depending on the source of complementary assets and organizational boundaries. We address the three procedural activities of sensing, seizing, and transforming that underlie asset recombination and discuss the associated recombinant FSAs. This study provides a better understanding of the mechanisms available to augment the firm’s asset portfolio in cross-border settings.

Suggested Citation

  • Lee, Jong Min & Narula, Rajneesh & Hillemann, Jenny, 2021. "Unraveling asset recombination through the lens of firm-specific advantages: A dynamic capabilities perspective," Journal of World Business, Elsevier, vol. 56(2).
    • Handle: RePEc:eee:worbus:v:56:y:2021:i:2:s1090951621000055
    DOI: 10.1016/j.jwb.2021.101193
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    Cited by:

    1. Athreye, Suma & Saeed, Abubakr & Saad Baloch, Muhammad, 2023. "The survival of outward investments from China and India: Is there a North-South divide?," Journal of Business Research, Elsevier, vol. 154(C).
    2. Yong Suhk Pak & Jong Min Lee, 2023. "Organizational learning platforms for knowledge creation in international joint ventures: the mediating role of formal and informal communication," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 2135-2163, November.
    3. Dan Prud’homme & Tony W. Tong, 2024. "Rethinking firm-specific advantages from intellectual property rights: Boundary conditions for MNEs," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(1), pages 91-109, February.
    4. Christian Asmussen & Tailan Chi & Rajneesh Narula, 2022. "Quasi-internalization, recombination advantages, and global value chains: Clarifying the role of ownership and control," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1747-1765, October.
    5. Asmund Rygh & Gabriel R. G. Benito, 2023. "Subsidiary Capital Structure in Multinational Enterprises: A New Internalization Theory Perspective," Management International Review, Springer, vol. 63(6), pages 979-1019, December.
    6. Nadia Zahoor & Yong Kyu Lew, 2022. "Sustaining superior international performance: Strategic orientations and dynamic capability of environmentally concerned small‐ and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1002-1017, March.
    7. Blomkvist, Katarina & Kappen, Philip & Zander, Ivo, 2023. "Weathering storms – Technological exploration of MNCs in times of financial crisis," Journal of World Business, Elsevier, vol. 58(2).
    8. Osabutey, Ellis L.C. & Papanastassiou, Marina & Jin, Zhongqi & Navare, Jyoti & Agyapong, Ahmed, 2023. "Revisiting FSAs and CSAs in Sub-Saharan Africa: Evidence from Ghanaian Firms," International Business Review, Elsevier, vol. 32(4).
    9. Yang, Jie & Mohammad, Shoeb, 2023. "Is the cure worse than the disease? The effect of emerging market MNEs on host country corruption," International Business Review, Elsevier, vol. 32(3).
    10. Liang Chen & Sali Li & Jiang Wei & Yang Yang, 2022. "Externalization in the platform economy: Social platforms and institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1805-1816, October.
    11. Jaideep Anand & Gerald McDermott & Ram Mudambi & Rajneesh Narula, 2021. "Innovation in and from emerging economies: New insights and lessons for international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(4), pages 545-559, June.
    12. Rong (Ratchel) Zeng & Birgitte Grøgaard & Ingmar Björkman, 2023. "Navigating MNE control and coordination: A critical review and directions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1599-1622, December.
    13. Randolph Luca Bruno & Riccardo Crescenzi & Saul Estrin & Sergio Petralia, 2022. "Multinationals, innovation, and institutional context: IPR protection and distance effects," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 1945-1970, December.
    14. Douglas Cumming & Sofia Johan & Zaheer Khan & Martin Meyer, 2023. "E-Commerce Policy and International Business," Management International Review, Springer, vol. 63(1), pages 3-25, February.
    15. Yunok Cho & Nigel Driffield & Sourindra Banerjee & Byung Il Park, 2023. "Returns to Internationalization: Business Group-Affiliated Firms vs Standalone Firms," Management International Review, Springer, vol. 63(4), pages 603-639, August.
    16. Amankwah-Amoah, Joseph & Boso, Nathaniel & Kutsoati, James Kofi, 2022. "Institutionalization of protection for intangible assets: Insights from the counterfeit and pirated goods trade in sub-Saharan Africa," Journal of World Business, Elsevier, vol. 57(2).
    17. Benlu Hai & Ximing Yin & Jie Xiong & Jin Chen, 2022. "Could more innovation output bring better financial performance? The role of financial constraints," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-26, December.
    18. Gooderham, Paul N. & Elter, Frank & Pedersen, Torben & Sandvik, Alexander Madsen, 2022. "The Digital Challenge for Multinational Mobile Network Operators. More marginalization or rejuvenation?," Journal of International Management, Elsevier, vol. 28(4).

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