Session 65

Resourceful competitors: Competitive strategies and the resource based view

Track E

Date: Monday, October 8, 2012


Time: 09:30 – 10:45


Room: North Hall

Session Chair:

  • Joydeep Chatterjee, University of Washington Bothell

Title: Is The Price Right?: The Impact of Pricing Resources, Routines, and Skills on Firm Profitability


  • Gavin Beckford, IE University

Abstract: This study quantitatively tests and expands upon the work of Dutta et al (2003), which proposes that the effective price-setting capability of managers can be considered a strategic resource. Pricing resources, routines, and skills can aid or cripple a firm’s ability to set the optimal price in the market, affecting its ability to appropriate the value created and limit the valued ceded to the consumer. The discussion is enhanced through the application of the Institutional Isomorphism perspective, which addresses the widespread application of Cost-Plus pricing by firms in order to avoid complexity. The superiority of investing in pricing capabilities over Cost-Plus pricing is illustrated through panel regression analysis applied to a sample of 2126 Spanish industrial firms.

Title: Performance Implications of Industry and Firm-Level Strategic Rent Creation Foci


  • Dominic S. K. Lim, Western University, Canada
  • Chang Hoon Oh, Simon Fraser University

Abstract: This paper examines the competing hypotheses about strategic purity vs. strategic balance. We focus on two distinct mechanisms of rent creation—Ricardian rent creation based on the exploitation of resources and Schumpeterian rent creation based on explorative capabilities—and investigate whether pursuing both of these orthogonally conceptualized strategic rent creation foci leads to superior performance. We further examine the effect of alignment (or misalignment) between firm-level and industry-level strategic rent creation foci on financial performance. We test our hypotheses by employing a multilevel modeling technique on a sample of non-diversified public European firms.

Title: Service Diversity, Offshore Leverage, Vendor Reputation, and Performance of Customer Accounts in Software Outsourcing


  • Joydeep Chatterjee, University of Washington Bothell
  • Amitava Bandyopadhayay, Indian Statistical Institute

Abstract: This paper studies the impact of delivering widely diverse services, managing dispersed teams across time zones, and building vendor reputation for quality services, on performance at the customer account level and shows how firms can sustain competitive advantage. We provide quantitative measures for these capabilities using detailed pre-sales data from a leading global IT services firm and examine their impact on business performance. We find that increasing service diversity decreases account profitability at a decreasing rate and increasing the ability to manage dispersed teams increases profitability at an increasing rate and reputation enhances performance. These findings are applicable to a wide variety of businesses engaged in knowledge intensive services domain. Theoretical and practical implications of these capabilities are discussed.

Title: Strategic, Ordinary and Junk Resources: Considering the Complete Range of Resources


  • Xavier Weppe, University of Lille
  • Vanessa Warnier, University of Lille
  • Xavier Lecocq, University of Lille

Abstract: Resources of the firm are the particular focus of Resource-Based Theory (RBT). However, studies adopting this approach tend to concentrate on “strategic” resources, i.e. those with VRIN attributes (Valuable, Rare, Inimitable and Non-substitutable) and therefore those resources offering a sustainable competitive advantage. While recognizing the importance of strategic resources in constructing and sustaining a competitive advantage, we defend the idea in this article that a symmetric analysis of other resources can shed new light on the sources and mechanisms of superior performance. Alongside strategic resources, we introduce the concepts of “ordinary resources” and “junk resources”, showing how they may contribute to performance. We suggest some consequences for RBT and resources management.

All Sessions in Track E...

Sun: 08:00 – 09:15
Session 270: New Frontiers in the Computational Approaches to Strategy and Organization
Sun: 09:30 – 10:45
Session 271: Competing for Innovation
Sun: 11:15 – 12:30
Session 272: Unified Theory of Industry Evolution
Sun: 15:15 – 16:30
Session 52: Networks and competition
Session 66: Competitive strategies in transition
Mon: 08:00 – 09:15
Session 55: Risk, uncertainty and competitive advantage
Session 64: Diverse strategies: Diversification and the evolution of competition
Mon: 09:30 – 10:45
Session 65: Resourceful competitors: Competitive strategies and the resource based view
Mon: 13:30 – 14:45
Session 54: The dynamics of dynamic capabilities
Mon: 16:30 – 17:45
Session 57: Finding your niche: Niche Strategies and Competitive Advantage
Session 245: Competitors, strategy, and competitive dynamics
Tue: 08:00 – 09:15
Session 56: Competitive dynamics meet competitive strategy
Session 254: Capital Markets and Efficiency
Tue: 11:00 – 12:15
Session 58: Innovation and competitive strategy
Tue: 14:15 – 15:30
Session 60: The sustainability of competitive advantage
Session 61: Value creation and value capture
Tue: 15:45 – 17:00
Session 62: Acquiring competitive success? Mergers and acquisitions
Tue: 17:30 – 18:45
Session 59: Tempus fugit? Competitive strategy over time

Strategic Management Society