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The paper seeks to analyze the evolution of competitive advantage using both “classic” and “extended” resource‐based theory (RBT). The aim is to examine the different ways in which “classic” and “extended” resource‐based advantage develops and how they might combine to create long‐term advantage.

A single case study method is used to examine the process by which competitive advantage has accumulated over a 50‐year period at Food Services Group Inc., a highly successful food service company based on the West Coast of the USA with an annual growth rate currently running at 10 percent.

Preliminary conclusions suggest support for the sequential, iterative, and slow‐cycle development model associated with proprietary bounded resources and, the strategic resource‐rigidity paradox. The work also highlights preliminary evidence for a faster cycle development process possible with inter‐firm resources associated with extended resource‐based theory (ERBT) and, long‐run sustainable advantage requiring synchronization and integration of both bounded and relational resources.

This is the first rich empirical study of the way competitive advantage evolves using both RBT and ERBT. The research provides insights into how organizations can combine both classic and extended resources in seeking to establish competitive advantage. It illustrates how unbounded external resources, such as the role of suppliers engaged in new product development, can create an initial advantage for firms who then build on this by investing in bounded resources such as specific skills within their organization.

The purpose of this paper is to analyze the mechanism of the role of government subsidies on corporate environmental investment and explore how specific characteristics of firms affect corporate environmental responsibility.

This paper examines the relationship between government subsidies and corporate environmental investment and models with a sample of 78,854 industries. The authors measure the corporate environmental investment by the natural logarithm of the volume of waste gas treatment facilities.

The results show the positive effect of government subsidies on corporate environmental investment. In addition, state ownership positively regulates the relationship between government and corporations, but the relationship between them is negatively regulated by the slack resources.

When people are increasingly concerned about corporate social and environmental responsibility, clarifying the link between government subsidies and corporate environmental investments can help policymakers formulate policies and allocate limited resources.

This study uses the resource-based view as a theoretical framework to reveal the mechanism of action between government subsidies and corporate environmental responsibility, enriching the previous literature that explores the issue based on the legitimacy perspective.

We investigate whether active involvement of private equity firms in their portfolio companies during the holding period of a later-stage private equity investment is related to increased levels in operating performance of these companies. Our analysis of unique survey data on 267 European buyouts and secondary performance data on 29 portfolio companies using partial least squares structural equation modeling indicates that private equity firms, that is, their board representatives, can increase operating performance not only by monitoring the behavior of top managers of portfolio companies, but also by becoming involved in strategic decisions and supporting top managers through the provision of strategic resources. Strategic resources, in particular expertise and networks, provided by private equity firm representatives in the form of financial and strategic involvement are associated with increases in the financial performance and competitive prospects of portfolio companies. Operational involvement, however, is not related to changes in operating performance. In addition to empirical insights into the different types of involvement and their effects, this chapter contributes to the buyout literature by providing support for the suggested broadening of the theoretical discussion beyond the dominant perspective of agency theory through developing and testing a complementary resource-based view of involvement. This allows taking into account not only the monitoring, but also the more entrepreneurial supporting element of involvement by private equity firms.

The purpose of this paper is to assess the financial performance of microenterprises in Ghana by applying the resource‐based theory of the firm. Specifically, it is tested that if firm‐specific resources dominate sector and market‐wide effects in explaining microenterprise performance, as suggested by the resource‐based theory.

The relevant literature for both microenterprise performance and the resource‐based theory is reviewed. Data from the 1998/1999 Ghana Living Standards Survey are analysed using ordinary least squares, followed by robustness checks.

Factors embodied in firm‐specific resources jointly impact enterprise performance. However, sector/market factors also play a role, suggesting that the interaction between microenterprise, sector, and market factors helps explain enterprise performance.

All the constructs of the resource‐based theory cannot be tested due to data limitations.

Small enterprises play a key role in promoting developing country growth, but no study has evaluated microenterprise performance using this particular data set and the resource‐based theory of the firm. Future research should focus on collecting data to further validate this theory.

The purpose of this study is to explore the investment of supply chain technology-to-performance path relationship through the lens of the resource-based view (RBV) as illuminated by the organizational learning literature.

This study surveyed top-level managers who are registered members of the Council of Supply Chain Management Professionals.

Using factor analysis and OLS regression on 300+ supply chain professionals, this study confirms that investments in both enterprise- and radio frequency identification (RFID)-specific knowledge management (KM) tools yield substantial benefits to the firm’s knowledge management system (KMS) which is the dependent path to higher supply chain performance.

This sample was taken with supply chain professionals who are more likely to value supply chain investments as part of their responsibility.

The authors believe that the empirical study on supply chain investment from a resource-based perspective will contribute to the ongoing RBV theoretical discussions while providing insights for practitioners in the realm of supply chain investment.

Every investment in supply technology should be driven by an understanding of the inextricably inter-connectedness of knowledge management capabilities and the firm’s ability to effectively implement its corporate strategies. By emphasizing the inter-connection between knowledge management and supply chain technology investments, firms improve their potential for developing a competitive advantage.

On the basis of behavioural agency theory and resource-based view, this study investigates the influence of family firm birth mode (i.e. indirect-established or direct-established), family entering time on R&D investment and the moderating role of the family entering time on the relationship between birth mode and R&D investment.

The authors collected 2,990 firm-year observations from family firms listed on A-share in China from 2008 to 2016 in the China Stock Market and Accounting Research database. They used pooled regression for data analysis and Tobit regression for robustness checks.

Indirect-established family firms show more inclined behaviour towards R&D investment than direct-established counterparts. Family entering time positively affects the R&D investment of family firms. Moreover, family entering time plays a significant moderating role in the relationship between family firm birth mode (i.e. indirect-established or direct-established) and R&D investment.

To the best of the authors’ knowledge, this work is a pioneering study that introduced the concept of family firm birth mode (i.e. indirect-established or direct-established) and family entering time. This work is novel because it differentiated family firms according to their birth modes, an approach which is a contribution to the existing literature of family firms. Moreover, the investigation of the moderating role of family entering time has also produced notable results that help understand the impact of family entering time on different types of family firms. The interpretation of outcomes according to behavioural agency theory also produced useful insights for future researchers as well as for policymakers.

Though prior studies have attempted to explore the various effects of managing information technology (IT) investment on firm performance, the mechanism through which management of IT impact on firm performance rests less clear. The purpose of this study is to examine the impact of managing IT and business-IT alignment on firm performance.

Drawing on the resource-based theory and process theory, this study examines how managing IT impacts business-IT alignment and firm performance. The primary survey of 182 responses from IT and business managers from Sri Lanka was empirically examined.

The findings reveal that managing IT has a positive and strong impact on business-IT alignment and firm performance. Further, business-IT alignment partially mediates between managing IT investment and firm performance relationships.

Today, businesses have invested a massive amount of money in IT investment, and the return on this investment is always a serious concern for managers and industry practitioners. This study finding proposes meaningful insights on managing IT, business-IT alignment and firm performance.

This study opens up the black box on the above nomological linkage and contributes to the literature by extending the theoretical lenses while suggesting insightful and practical implications.

Nowadays, China is one of the most important destinations for international expansion of firms from all over the world. Based on the traditional theory on foreign direct investment and the resource‐based view of the firm, this paper analyzes the influence of various tangible and intangible firm‐specific factors on the choice amongst three different modes of entry into China: representative office, joint venture and wholly‐owned subsidiary. The results obtained suggest that the size of the investing firm, its performance as well as its experience regarding the country have a positive influence on the choice of types of foreign direct investment that involve a high level of resources commitment. In addition, the specific aim of the project affects these relationships.

The purpose of this paper is to offer a critical perspective on China's official outward foreign direct investment (OFDI) data, commonly used in most research on the internationalization of Chinese companies. Owing to the deficiencies of China's statistical system, official OFDI data leave us with only a limited understanding of the pattern of Chinese OFDI in general and cross‐border mergers and acquisitions (M&As) in particular.

Based on a theoretical discussion of the internationalization of companies, some propositions about the development pattern of Chinese M&As are derived. This study uses the Dealogic database, which covers Chinese cross‐border M&As during the period from January 1999 to May 2007 in order to analyse the development trend, geographical destination, sectoral distribution, and equity participation of Chinese cross‐border M&As.

First, the growth of China's OFDI has not been as fast as expected, while the development of cross‐border M&As has been very impressive. Second, although official OFDI statistics reveal that Asia remains the most important investment destination, our M&A data analysis shows that the developed countries in the West have attracted most Chinese cross‐border M&A investments. Third, in contrast to the official OFDI statistics, our findings reveal a heavy concentration of M&As in mining and manufacturing. Finally, our cross‐border M&A data suggest that Chinese companies predominantly seek high‐level equity participation in the acquired target companies abroad.

This paper fills a gap in the study of the development pattern of Chinese cross‐border M&A investments and offers a complementary view and a better understanding of the internationalization of Chinese companies.