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Assessing the Resource Base of Japanese and U.S. Auto Producers: A Stochastic Frontier Production Function Approach

Author

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  • Marvin B. Lieberman

    () (Anderson School of Management, University of California, Los Angeles, Los Angeles, California 90095-1481)

  • Rajeev Dhawan

    () (J. Mack Robinson College of Business, Georgia State University, Atlanta, Georgia 30303)

Abstract

The "resource-based view of the firm" has become an important conceptual framework in strategic management but has been widely criticized for lack of an empirical base. To address this deficit, we utilize a new method for identifying interfirm differences in efficiency within the context of stochastic frontier production functions. Using data on Japanese and U.S. automobile manufacturers, we develop measures of resources and capabilities and test for linkages with firm performance. The results show the influence of manufacturing proficiency and scale economies at the firm and plant level. We apply the parameter estimates to account for Toyota's superior efficiency relative to other producers.

Suggested Citation

  • Marvin B. Lieberman & Rajeev Dhawan, 2005. "Assessing the Resource Base of Japanese and U.S. Auto Producers: A Stochastic Frontier Production Function Approach," Management Science, INFORMS, vol. 51(7), pages 1060-1075, July.
  • Handle: RePEc:inm:ormnsc:v:51:y:2005:i:7:p:1060-1075
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    File URL: http://dx.doi.org/10.1287/mnsc.1050.0416
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    References listed on IDEAS

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    1. Norsworthy, J R & Malmquist, David H, 1983. "Input Measurement and Productivity Growth in Japanese and U.S. Manufacturing," American Economic Review, American Economic Association, vol. 73(5), pages 947-967, December.
    2. Marvin B. Lieberman & Lieven Demeester, 1999. "Inventory Reduction and Productivity Growth: Linkages in the Japanese Automotive Industry," Management Science, INFORMS, vol. 45(4), pages 466-485, April.
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    Citations

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    Cited by:

    1. repec:eee:iburev:v:26:y:2017:i:5:p:839-854 is not listed on IDEAS
    2. Mohammad Reza Dalvi & Robabe Seifi, 2014. "A Study Effects Architectural Marketing Capabilities on Performance Marketing unit Based on: Morgan et al case: Past Industry in Tehran," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(1), pages 441-451, January.
    3. Olivier Bertrand & Laurence Capron, 2015. "Productivity enhancement at home via cross-border acquisitions: The roles of learning and contemporaneous domestic investments," Strategic Management Journal, Wiley Blackwell, vol. 36(5), pages 640-658, May.
    4. Chien-Ming Chen & Magali A. Delmas & Marvin B. Lieberman, 2015. "Production frontier methodologies and efficiency as a performance measure in strategic management research," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 19-36, January.
    5. Creane, Anthony & Davidson, Carl, 2011. "The trade-offs from pattern bargaining with uncertain production costs," European Economic Review, Elsevier, vol. 55(2), pages 246-262, February.
    6. David Atkinson, 2013. "Dynamic capabilities: implications for marketing strategy formulation and implementation," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 5(3), pages 252-267.
    7. Lai, Richard, 2005. "The Geography of Retail Inventory," MPRA Paper 4755, University Library of Munich, Germany.
    8. repec:kap:jbuset:v:143:y:2017:i:3:d:10.1007_s10551-015-2809-8 is not listed on IDEAS
    9. Sáenz-Royo, Carlos & Salas-Fumás, Vicente, 2013. "Learning to learn and productivity growth: Evidence from a new car-assembly plant," Omega, Elsevier, vol. 41(2), pages 336-344.
    10. repec:eee:tefoso:v:123:y:2017:i:c:p:57-67 is not listed on IDEAS
    11. Sáenz-Royo, Carlos & Salas-Fumás, Vicente, 2014. "Long- and short-term efficiency in an automobile factory: An econometric case study," International Journal of Production Economics, Elsevier, vol. 156(C), pages 98-107.
    12. Taylor Randall & Serguei Netessine & Nils Rudi, 2006. "An Empirical Examination of the Decision to Invest in Fulfillment Capabilities: A Study of Internet Retailers," Management Science, INFORMS, vol. 52(4), pages 567-580, April.
    13. Vivek Ghosal & Jiayao Ni, 2015. "Competition and Innovation in Automobile Markets," CESifo Working Paper Series 5504, CESifo Group Munich.
    14. Marvin Lieberman & Jina Kang, 2008. "How to measure company productivity using value-added: A focus on Pohang Steel (POSCO)," Asia Pacific Journal of Management, Springer, vol. 25(2), pages 209-224, June.

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