IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v85y2018icp32-50.html
   My bibliography  Save this article

Resource configurations, product development capability, and competitive advantage: An empirical analysis of their evolution

Author

Listed:
  • Saranga, Haritha
  • George, Rejie
  • Beine, Judith
  • Arnold, Ulli

Abstract

We draw on prior work in the strategy domain and provide empirical evidence of how interactions of resources (or resource configurations) underlying an important capability (i.e., product development capability) lead to differential levels of competitive advantage in a unique emerging economy setting. Our work provides a nuanced understanding of how the efficacy of a specific capability varies depending on changes in the product market environment, such that certain resource configurations facilitate competitive advantage during particular periods of time, while others do not. The study uses rich qualitative and quantitative data gathered through primary and secondary sources to test the conjectures. Our work also demonstrates that while interactions of resources matter significantly in providing competitive advantage, in isolation, these resources do not matter.

Suggested Citation

  • Saranga, Haritha & George, Rejie & Beine, Judith & Arnold, Ulli, 2018. "Resource configurations, product development capability, and competitive advantage: An empirical analysis of their evolution," Journal of Business Research, Elsevier, vol. 85(C), pages 32-50.
  • Handle: RePEc:eee:jbrese:v:85:y:2018:i:c:p:32-50
    DOI: 10.1016/j.jbusres.2017.11.045
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296317304915
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2017.11.045?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Okada, Aya, 2004. "Skills Development and Interfirm Learning Linkages under Globalization: Lessons from the Indian Automobile Industry," World Development, Elsevier, vol. 32(7), pages 1265-1288, July.
    2. D'costa, Anthony P., 1995. "The restructuring of the Indian automobile industry: Indian state and Japanese capital," World Development, Elsevier, vol. 23(3), pages 485-502, March.
    3. Sidney G. Winter, 2000. "The Satisficing Principle in Capability Learning," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 981-996, October.
    4. Jonnalagedda, Sreelata & Saranga, Haritha, 2017. "Commonality decisions when designing for multiple markets," European Journal of Operational Research, Elsevier, vol. 258(3), pages 902-911.
    5. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    6. Daniel Levinthal & Jennifer Myatt, 1994. "Co‐Evolution of Capabilities and Industry: The Evolution of Mutual Fund Processing," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 45-62, December.
    7. Gary P. Pisano, 1994. "Knowledge, Integration, and the Locus of Learning: An Empirical Analysis of Process Development," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 85-100, December.
    8. Benjamin A. Campbell & Martin Ganco & April M. Franco & Rajshree Agarwal, 2012. "Who leaves, where to, and why worry? employee mobility, entrepreneurship and effects on source firm performance," Strategic Management Journal, Wiley Blackwell, vol. 33(1), pages 65-87, January.
    9. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    10. Rebecca Henderson & Iain Cockburn, 1994. "Measuring Competence? Exploring Firm Effects in Pharmaceutical Research," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 63-84, December.
    11. Ken Kusunoki & Ikujiro Nonaka & Akiya Nagata, 1998. "Organizational Capabilities in Product Development of Japanese Firms: A Conceptual Framework and Empirical Findings," Organization Science, INFORMS, vol. 9(6), pages 699-718, December.
    12. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    13. Arie Y. Lewin & Silvia Massini & Carine Peeters, 2011. "Microfoundations of Internal and External Absorptive Capacity Routines," Organization Science, INFORMS, vol. 22(1), pages 81-98, February.
    14. Allen S. Lee, 1991. "Integrating Positivist and Interpretive Approaches to Organizational Research," Organization Science, INFORMS, vol. 2(4), pages 342-365, November.
    15. Saranga, Haritha, 2009. "The Indian auto component industry - Estimation of operational efficiency and its determinants using DEA," European Journal of Operational Research, Elsevier, vol. 196(2), pages 707-718, July.
    16. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    17. Arun Kumaraswamy & Ram Mudambi & Haritha Saranga & Arindam Tripathy, 2012. "Catch-up strategies in the Indian auto components industry: Domestic firms’ responses to market liberalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(4), pages 368-395, May.
    18. Masaaki Kotabe & Xavier Martin & Hiroshi Domoto, 2003. "Gaining from vertical partnerships: knowledge transfer, relationship duration, and supplier performance improvement in the U.S. and Japanese automotive industries," Strategic Management Journal, Wiley Blackwell, vol. 24(4), pages 293-316, April.
    19. Martha S. Feldman, 2000. "Organizational Routines as a Source of Continuous Change," Organization Science, INFORMS, vol. 11(6), pages 611-629, December.
    20. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    21. Melissa A. Schilling & Patricia Vidal & Robert E. Ployhart & Alexandre Marangoni, 2003. "Learning by Doing Something Else: Variation, Relatedness, and the Learning Curve," Management Science, INFORMS, vol. 49(1), pages 39-56, January.
    22. Janice A. Black & Kimberly B. Boal, 1994. "Strategic resources: Traits, configurations and paths to sustainable competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S2), pages 131-148, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tsui-Yii Shih, 2018. "Determinants of Enterprises Radical Innovation and Performance: Insights into Strategic Orientation of Cultural and Creative Enterprises," Sustainability, MDPI, vol. 10(6), pages 1-22, June.
    2. Huemer, Lars & Wang, Xiaobei, 2021. "Resource bundles and value creation: An analytical framework," Journal of Business Research, Elsevier, vol. 134(C), pages 720-728.
    3. Saranga, Haritha & Schotter, Andreas P.J. & Mudambi, Ram, 2019. "The double helix effect: Catch-up and local-foreign co-evolution in the Indian and Chinese automotive industries," International Business Review, Elsevier, vol. 28(5), pages 1-1.
    4. Ilinova, Alina & Dmitrieva, Diana & Kraslawski, Andrzej, 2021. "Influence of COVID-19 pandemic on fertilizer companies: The role of competitive advantages," Resources Policy, Elsevier, vol. 71(C).
    5. Matthias Brönner & Skander Salah & Markus Lienkamp, 2020. "Production Challenges in Least Developed Countries," Challenges, MDPI, vol. 11(1), pages 1-20, January.
    6. Wei‐Jr Juo & Chao‐Hung Wang, 2022. "Does green innovation mediate the relationship between green relational view and competitive advantage?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2456-2468, July.
    7. Tien-Li Chen & Chin-Chuan Chen & Yen-Ching Chuang & James J. H. Liou, 2020. "A Hybrid MADM Model for Product Design Evaluation and Improvement," Sustainability, MDPI, vol. 12(17), pages 1-22, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schriber, Svante & Löwstedt, Jan, 2015. "Tangible resources and the development of organizational capabilities," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 54-68.
    2. Giovanni. Gavetti & Daniel A. Levinthal, 2004. "50th Anniversay Article: The Strategy Field from the Perspective of Management Science: Divergent Strands and Possible Integration," Management Science, INFORMS, vol. 50(10), pages 1309-1318, October.
    3. Georg Schreyögg & Jörg Sydow, 2010. "CROSSROADS---Organizing for Fluidity? Dilemmas of New Organizational Forms," Organization Science, INFORMS, vol. 21(6), pages 1251-1262, December.
    4. Wolfgang H. Güttel & Stefan Konlechner & Barbara Müller, 2012. "Entscheidungsmuster und Veränderungsarchitekturen in Wandelprozessen: Eine Dynamic Capabilities-Perspektive," Schmalenbach Journal of Business Research, Springer, vol. 64(6), pages 630-654, September.
    5. Rakesh B. Sambharya & Jooh Lee, 2014. "Renewing Dynamic Capabilities Globally: An Empirical Study of the World’s Largest MNCs," Management International Review, Springer, vol. 54(2), pages 137-169, April.
    6. Chen, Hung-hsin & Lee, Po-yen & Lay, Tzyy-jane, 2009. "Drivers of dynamic learning and dynamic competitive capabilities in international strategic alliances," Journal of Business Research, Elsevier, vol. 62(12), pages 1289-1295, December.
    7. Vlatka Skokic & Marko Coh & Marko Torkkeli, 2015. "Dynamic Capabilities in SMEs: The Integration of External Competencies," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 6(3), pages 54-70, September.
    8. Isobe, Takehiko & Makino, Shige & Montgomery, David B., 2002. "Performance Impact of Technological Assets and Reconfiguration Capabilities: The Case of Small Manufacturing Firms in Japan," Research Papers 1768, Stanford University, Graduate School of Business.
    9. Wu, Lei-Yu, 2010. "Applicability of the resource-based and dynamic-capability views under environmental volatility," Journal of Business Research, Elsevier, vol. 63(1), pages 27-31, January.
    10. Wójcik Piotr, 2015. "Exploring Links Between Dynamic Capabilities Perspective and Resource-Based View: A Literature Overview," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 45(1), pages 83-107, March.
    11. Dixit, M. R. & Sharma, Sunil & Karna, Amit, 2007. "Role of ‘corporate persistence’ and ‘environmental support’ in building breakthrough capability: Empirical investigation of Samsung’s initiatives in memory and microwave oven business," IIMA Working Papers WP2007-10-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    12. repec:dau:papers:123456789/9209 is not listed on IDEAS
    13. Nickerson, Jack A. & Yen, C. James & Mahoney, Joseph T., 2011. "Exploring the Problem-Finding and Problem-Solving Approach for Designing Organizations," Working Papers 11-0107, University of Illinois at Urbana-Champaign, College of Business.
    14. Lee, Po-Yen & Lin, Hui-Tzu & Chen, Hung-Hsin & Shyr, Yi-Hwan, 2011. "Dynamic capabilities exploitation of market and hierarchy governance structures: An empirical comparison of Taiwan and South Korea," Journal of World Business, Elsevier, vol. 46(3), pages 359-370, July.
    15. Scott F. Rockart & Nilanjana Dutt, 2015. "The rate and potential of capability development trajectories," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 53-75, January.
    16. Gligor, David M. & Holcomb, Mary C. & Feizabadi, Javad, 2016. "An exploration of the strategic antecedents of firm supply chain agility: The role of a firm's orientations," International Journal of Production Economics, Elsevier, vol. 179(C), pages 24-34.
    17. Takehiko Isobe & Shige Makino & David Montgomery, 2008. "Technological capabilities and firm performance: The case of small manufacturing firms in Japan," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 413-428, September.
    18. Maria Chiara Di Guardo & Kathryn Rudie Harrigan & Elona Marku, 2019. "M&A and diversification strategies: what effect on quality of inventive activity?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 669-692, September.
    19. Neil M Kay, 2018. "We need to talk: opposing narratives and conflicting perspectives in the conversation on routines," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(6), pages 943-956.
    20. Hazhir Rahmandad & Nelson Repenning, 2016. "Capability erosion dynamics," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 649-672, April.
    21. Hazhir Rahmandad, 2012. "Impact of Growth Opportunities and Competition on Firm-Level Capability Development Trade-offs," Organization Science, INFORMS, vol. 23(1), pages 138-154, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:85:y:2018:i:c:p:32-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.