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Resources, capabilities, and the performance of industrial firms: A multivariate analysis

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  • Abraham Carmeli

    (Graduate School of Business Administration and Department of Political Science, Bar-Ilan University, Ramat-Gan 52900, Israel)

  • Asher Tishler

    (Faculty of Management, Tel Aviv University, Ramat Aviv, Tel Aviv 69978, Israel)

Abstract

This study uses multivariate analysis to assess the basic question asked by resource-based view researchers: Do organizational resources and capabilities account for variations in firm performance? An analysis of survey responses of 93 industrial enterprises in Israel indicates that superiority of an industrial enterprise, in terms of four performance measures (return on sales, return on equity, market share change, and customer satisfaction), can be explained by a set of four core organizational resources and capabilities (managerial skills, organizational culture, organizational communication, and perceived organizational reputation). The results lend significant support to the premise of the resource-based view of strategic management. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Abraham Carmeli & Asher Tishler, 2004. "Resources, capabilities, and the performance of industrial firms: A multivariate analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(6-7), pages 299-315.
    • Handle: RePEc:wly:mgtdec:v:25:y:2004:i:6-7:p:299-315
    DOI: 10.1002/mde.1192
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    1. Hossein Mombeini & Abdolreza Yazdani-Chamzini & Dalia Streimikiene & Edmundas Kazimieras Zavadskas, 2018. "New fuzzy logic approach for the capability assessment of renewable energy technologies: Case of Iran," Energy & Environment, , vol. 29(4), pages 511-532, June.
    2. Annika Veh & Markus Göbel & Rick Vogel, 2019. "Corporate reputation in management research: a review of the literature and assessment of the concept," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 315-353, December.
    3. Kevin Money & Anastasiya Saraeva & Irene Garnelo-Gomez & Stephen Pain & Carola Hillenbrand, 2017. "Corporate Reputation Past and Future: A Review and Integration of Existing Literature and a Framework for Future Research," Corporate Reputation Review, Palgrave Macmillan, vol. 20(3), pages 193-211, November.
    4. Colombelli, Alessandra, 2014. "The Impact of Top Management Team Characteristics on Firms Growth," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201428, University of Turin.
    5. Susana Iglesias-Antelo & Vicente López-López & Antonio Vázquez-Sanmartín, 2021. "Assessing the Influence of Strategic Resources on the Quality of Life in Spanish Cities," Sustainability, MDPI, vol. 13(23), pages 1-19, November.
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    7. Simon Pek & Chang Hoon Oh & Jorge Rivera, 2018. "MNC foreign investment and industrial disasters: The moderating role of technological, safety management, and philanthropic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 502-526, February.
    8. Nisha Paul Kulangara & Markus Biehl & Edmund L. Prater, 2022. "Environmentally sustainable development initiatives in upstream strategic outsourcing relationships: Examining the role of innovative capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3014-3027, November.
    9. John Mugambwa Serumaga-Zake & John Andrew van der Poll, 2021. "Addressing the Impact of Fourth Industrial Revolution on South African Manufacturing Small and Medium Enterprises (SMEs)," Sustainability, MDPI, vol. 13(21), pages 1-31, October.
    10. Frohwein, Torsten, 2015. "The regulated firm: Effects of regulation on competence development and sustainable competitive advantage," Research Papers on Innovation, Services and Technology 1/2015, University of Stuttgart, Institute of Business Administration, Department I - Institute of Research & Development and Innovation Management.
    11. Pilar Portillo-Tarragona & Sabina Scarpellini & Jose M. Moneva & Jesus Valero-Gil & Alfonso Aranda-Usón, 2018. "Classification and Measurement of the Firms’ Resources and Capabilities Applied to Eco-Innovation Projects from a Resource-Based View Perspective," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    12. Nayak, Bishwajit & Bhattacharyya, Som Sekhar & Krishnamoorthy, Bala, 2022. "Exploring the black box of competitive advantage – An integrated bibliometric and chronological literature review approach," Journal of Business Research, Elsevier, vol. 139(C), pages 964-982.
    13. Isabel Olmedo-Cifuentes & Inocencia Martínez-León & Gary Davies, 2014. "Managing internal stakeholders’ views of corporate reputation," Service Business, Springer;Pan-Pacific Business Association, vol. 8(1), pages 83-111, March.
    14. Yilmaz, Cengiz & Ergun, Ercan, 2008. "Organizational culture and firm effectiveness: An examination of relative effects of culture traits and the balanced culture hypothesis in an emerging economy," Journal of World Business, Elsevier, vol. 43(3), pages 290-306, July.
    15. Nayak, Bishwajit & Bhattacharyya, Som Sekhar & Krishnamoorthy, Bala, 2021. "Explicating the role of emerging technologies and firm capabilities towards attainment of competitive advantage in health insurance service firms," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    16. Yahel Ma’ayan & Abraham Carmeli, 2016. "Internal Audits as a Source of Ethical Behavior, Efficiency, and Effectiveness in Work Units," Journal of Business Ethics, Springer, vol. 137(2), pages 347-363, August.
    17. Westfall, Tiffany J. & Myring, Mark, 2022. "Are voluntary internal control weakness disclosures in initial public offerings associated with managerial ability and subsequent financial reporting quality?," Advances in accounting, Elsevier, vol. 59(C).
    18. Ilaria Galavotti, 2019. "Firm-level recent profitability and acquisition performance: exploring competing theoretical perspectives," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(3), pages 319-345, September.
    19. Yang, Ching-Chiao & Marlow, Peter B. & Lu, Chin-Shan, 2009. "Assessing resources, logistics service capabilities, innovation capabilities and the performance of container shipping services in Taiwan," International Journal of Production Economics, Elsevier, vol. 122(1), pages 4-20, November.
    20. Mumin Dayan & Poh Yen Ng & Nelson Oly Ndubisi, 2019. "Mindfulness, socioemotional wealth, and environmental strategy of family businesses," Business Strategy and the Environment, Wiley Blackwell, vol. 28(3), pages 466-481, March.
    21. Ng, Poh Yen & Dayan, Mumin & Di Benedetto, Anthony, 2019. "Performance in family firm: Influences of socioemotional wealth and managerial capabilities," Journal of Business Research, Elsevier, vol. 102(C), pages 178-190.
    22. Jyotiranjan Gochhayat & Vijai N. Giri & Damodar Suar, 2017. "Influence of Organizational Culture on Organizational Effectiveness: The Mediating Role of Organizational Communication," Global Business Review, International Management Institute, vol. 18(3), pages 691-702, June.
    23. Carmeli, Abraham & Zisu, Malka, 2009. "The relational underpinnings of quality internal auditing in medical clinics in Israel," Social Science & Medicine, Elsevier, vol. 68(5), pages 894-902, March.

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