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This study examines the diffusion process of corporate sustainability (CS) in the global automotive industry. It discusses the different roles played by the automakers, as the industry’s focal firms, in diffusing CS strategies throughout their respective supply networks. Studies have explained this phenomenon as being the result of the higher levels of stakeholder exposure faced by focal firms, which generate higher levels of supplier sustainability risk. In this context, the authors examine the effects of three network-related firm characteristics – resource dominance, resource substitutability, and network centrality – in determining the effectiveness of a firm in diffusing CS in its network. For that purpose, we present a theoretical framework from which we derive a set of hypotheses and test them on a sample of the global automotive supply network containing 10,726 firms linked by 45,044 inter-firm relationships. The results lend significant support to the argument that these network-related firm attributes are crucial mechanisms to the process of diffusion of CS strategies in a supply network, thus contributing to extant literatures in strategic management, international business, and sustainable supply chain management.

The purpose of this paper is to explore drivers of alliance formation in a specialized supply chain from a manager’s perspective, focussing on firm-specific resources, resources embedded in inter-firm relationships and capabilities under the control of the focal firm.

This paper focusses on the resource-based view to obtain insights from the analysis of a manager survey conducted in Canada’s beef sector, applying a logistic regression approach to study alliance formation.

In identifying significant roles for resource richness and diversification of resource usage, the analysis highlights the importance of resource characteristics underlying factor market imperfections as drivers of alliance formation in a single primary input supply chain. The results suggest that resource heterogeneity is important for alliance formation and organizational success in specialized supply chains.

If previous alliance-related experience of managers, controlled for in the underlying cross-sectional survey, serves as an approximation for persistent unobservables impacting the alliance formation decision, we may face spurious state-dependence.

Managers interested in building compatible alliances in specialized single primary input supply chains may benefit from an improved understanding of the differential role of resource characteristics and resource heterogeneity for alliance formation, as these can function as a source of competitive advantage.

The analysis provides new insights from an individual manager’s perspective on alliance formation drivers in a specialized agri-food supply chain, thereby solidifying extant findings on alliance formation obtained in other sectors. The study contributes to the understanding of the role of resources in alliance formation with regard to prior relationship experience, resource heterogeneity and thus causal ambiguity, thereby also contributing to the debate of the role of relational capabilities vs firm-internal resources for sustained competitive advantage.

Ronald Coase's landmark 1937 article, “The Nature of the Firm,” framed the study of organizational economics for decades. Coase asked three fundamental questions: Why do firms exist? What determines their boundaries? How should firms be organized internally? To answer the first question, Coase famously appealed to “the costs of using the price mechanism,” what we now call transaction costs or contracting costs, a concept that blossomed in the 1970s and 1980s into an elaborate theory of why firms exist (Alchian & Demsetz, 1972; Williamson, 1975, 1979, 1985; Klein, Crawford, & Alchian, 1978; Grossman & Hart, 1986). The second question has generated a huge literature in industrial economics, strategy, corporate finance, and organization theory. “Why,” as Coase (1937, pp. 393–394) put it, “does the entrepreneur not organize one less transaction or one more?” In Williamson's (1996, p. 150) words, “Why can't a large firm do everything that a collection of small firms can do and more?” As Coase recognized in 1937, the transaction-cost advantages of internal organization are not unlimited, and firms have a finite “optimum” size and shape. Describing these limits in detail has proved challenging, however.¹

While the strategic management literature suggests that related diversification is superior to unrelated diversification, there is little evidence that acquirers benefit from pursuing related targets. We argue that the empirical literature is plagued by poor measures of relatedness. Moreover, many empirical studies do not control adequately for the characteristics of the market for corporate control. We argue that not only value creation, but also value appropriation, depend on the relatedness of acquirer and target. Using an improved measure of relatedness, we provide empirical evidence that acquirer returns are positively and significantly correlated with relatedness.

Leveraging Emerson’s theory of power and motivated reasoning, this study aims to explore how the net power of an individual and actual, instead of perceived, vulnerability results in asymmetric trust and distrust development in a dyadic relationship.

Based on extant literature and gaps in the literature, this conceptual paper hypothesises and proposes trust formation based on power dynamics and vulnerability.

This research extends the knowledge base by exploring the role of actual vulnerability over perceived vulnerability in trust formation and distrust formation.

The research propositions imply that the dyadic trust formation process is not rational, and trust itself is not symmetrical but asymmetrical. The net power possessed by one individual over the other drives trust. Net power balance determines the actual vulnerability of the focal individual, and then the individual, through motivated reasoning, trusts or distrusts another individual. Scholars, going forward, could explore how trust formation varies at group and firm levels.

Extant literature has not explored the role of power imbalance in determining actual (versus perceived) vulnerability that influences trust formation between parties. The conceptual paper fills this gap.

The purpose of this investigation was to identify the association between Experience Use History (EUH) and types of substitution choices of hikers with the perspectives of activity involvement and place attachment. On-site surveys were distributed by systematic sampling technique to obtain a representative sample of hikers with 51% response rate. The theoretical expectation was confirmed by these data. Findings indicated that among four EUH classifications, Veterans and Visitors who perceived higher levels of activity involvement and relatively lower levels of place attachment tended to make resource substitutability, while Locals who scored highest on place attachment chose to make temporal substitutability and Beginners who scored lower on both activity involvement and place attachment were apt to make both resource and activity substitutability. Suggestions and managerial implication are further discussed.

Advancements in responsive manufacturing have been supporting companies over the last few decades. However, manufacturers now operate in a context of continuous uncertainty. This research paper explores a mechanism where companies can “elastically” provision and deprovision their production capacity, to enable them in coping with repeated disruptions. Such a mechanism is facilitated by the imitability and substitutability of production resources.

An inductive study was conducted using Gioia methodology for this theory generation research. Respondents from 20 UK manufacturing companies across multiple industrial sectors reflected on their experience during COVID-19. Resource-based view and resource dependence theory were employed to analyse the manufacturers' use of internal and external production resources.

The study identifies elastic responses at four operational levels: production-line, factory, company and supply chain. Elastic responses that imposed variable-costs were particularly well-suited for coping with unforeseen disruptions. Further, the imitability and substitutability of manufacturers helped others produce alternate goods during the crisis.

While uniqueness of production capability helps manufacturers sustain competitive advantage against competitors during stable operations, imitability and substitutability are beneficial during a crisis. Successful manufacturing companies need to combine these two approaches to respond effectively to repeated disruptions in a context of ongoing uncertainties. The theoretical contribution is in characterising responsive manufacturing in terms of resource heterogeneity and resource homogeneity, with elastic resourcing as the underlying mechanism.

The purpose of this paper is to develop an analytical framework that challenges the condescending view of multinationals of emerging countries. In this paper, it is showed that emerging multinational companies (EMNCs) developed valuable resources that leveraged their internationalization strategies.

An exploratory approach was used to investigate the internationalization strategies of EMNCs. A qualitative study was built on secondary data sources, particularly analysis of cases of the internationalization of Latin American companies.

The internationalization strategies deployed by EMNCs are similar to the strategies of traditional multinationals (firms of developed countries). Similarly, EMNCs exploit, acquire or defend their resources in foreign markets. Additionally, the selection of each strategy depends on the availability, transferability and substitutability of the resources involved in the internationalization.

The traditional approaches that study the role of resources in the internationalization of the EMNCs have some shortcomings. It is worth conducting additional research including the approach developed here to advance in the comprehension of the behavior of EMNCs.

Managers must identify and develop key resources to invest abroad. Additionally, managers need to take into account the characteristics of the resources of their firms to select an adequate strategy abroad.

This paper shows that EMNCs are not resource laggards. Consequently, theoretical and empirical evidence is provided to advance the development of comprehensive theories of the internationalization of EMNCs. This paper offers academics and practitioners with a new focus to analyze the internationalization of EMNCs which are recognized as a driving force of the global economy.

Capacity building is a crucial antecedent for socio-economic development. However, an enhanced capacity that is difficult to develop could quickly be eroded, because of rapid changes in competitive forces in industries and markets. Therefore, this paper intends to analyse the extant strategic management and relationship marketing (RM) literature that deal with competition. Eventually, the purpose of this paper is to develop an alternative route for capacity building process that could sustain competitive advantage in a market or industry, which encounters rapid changes in business competition.

An inductive constructivist approach is followed to support arguments, in order to develop a synthesis from the relevant literature to reinforce the current understandings on capacity building and sustained competitive advantage.

An influence of RM on strategic organisational dynamic capabilities (DCs) is recognised, which appears as significant to sustain DCs and subsequent competitive advantage. Based on this influence, this paper proposes a conceptual framework of capacity building that could survive through the “valuable, rare, inimitability and non-substitutability” test, which is fundamental to sustain competitive advantage. Some empirical insights are developed, in support of this conceptual framework.

For research and practice, these insights will be useful to focus on specific attributes in capacity building to sustain the enhanced capacity’s competitive advantage over time, across industries and markets.

Similarly, the insights will be instrumental to sustain the benefit of capacity building to underpin socio-economic progress.

The paper proposes a much needed initial conceptual framework for capacity building to sustain competitive advantage of a hard-earned capacity for socio-economic development.

The purpose of this exploratory study is to identify the most important resources, and emerging issues among Spain’s Cava wineries, including opportunities and challenges, from predominantly winery operators, and through the lens of the resource-based view of the firm (RBVF).

Unstructured, face-to-face, in-depth interviews were conducted with the representatives of five Cava firms, and with the manager of the local Institute of Cava in Sant Sadurnà d’Anoia, Spain. In addition, owners/managers of seven other Cava wineries provided responses and comments via email.

The attributes pertaining to the RBVF, such as valuable, rare, imperfect imitable resources, and (non)substitutability emerged in the present study, illustrated by the local designation of origin, tradition/history, territory, specific grape varietals and increased perceived quality of Cava products. To address pressing challenges and maximise opportunities, particularly the decline of domestic Cava consumption, participants underline strategies to gain more exposure in international wine consumer markets, and also benefit from the growing popularity of gastronomy and wine tourism.

Originality and value in this research are demonstrated in two ways. First, the study focuses on a region, which, despite its long history and tradition, has received limited attention from the academic literature, especially in recent years. Second, the study adopts the RBVF to facilitate understanding of contemporary issues affecting Cava wineries, and in aligning theory and findings. To date, this theoretical framework has been marginally adopted to examine the wine industry; this limitation is even more evident within the Cava industry.