Презентация на тему International management

types of resources and the nature of firm capabilities
Relate

resources and capabilities to the value chain

Part 2: Barney’s VRIO framework for analyzing resources and capabilities’ potential for improving firm performance

Part 3: Domestic vs International capabilities
To offshore or not offshore

resources/ assets
Tangibility implies we can observe or quantify (measure/

count)
Intangibility implies that the resource/ asset is not observable and difficult if not impossible to quantify

Capabilities
These are the things the firm is able to do as a result of combining resources (and capabilities) together to perform a specific task

How useful is it to try and separate resources and capabilities from one another, when they interact to such a great degree?

the vertical activities that create value

Upstream (sourcing/ manufacturing) to

down stream (selling)

Primary and secondary areas of activity in the value chain

Apple Store

example companies that are included, which could be described

as onshore and which offshore?

organizational activity to an outside supplier that will perform

the activity on behalf of the focal firm.

Looking Inside for Competitive Advantage. Academy of Management Executive,

9(4): 49-61.
Barney, Jay. 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management 17(1): 99-120.

two foundation assumptions for the resource-based view of the

firm and strategic management

Firm Resource Heterogeneity

Firm Resource Immobility

resources will give a firm a SCA
A resource must

have four attributes to provide a SCA

It must be valuable
It must be rare
It must be imperfectly imitable
The firm needs to be organized to exploit the resource

only when it enables strategies that improve firm efficiency

and effectiveness.

“The traditional ‘strengths-weaknesses-opportunities-threats’ model of firm performance suggests that firms are able to improve their performance only when their strategies exploit opportunities or neutralize threats” (Barney, 1991; p.106).

of resources) is rare when it is not possessed

by many competing firms

Can you think how conditions that would prevent many firms gaining access to a particular resource or resource bundle?

to give a firm a SCA it must however

not only be valuable and rare, it must also be difficult to imitate or obtain

Three sources of resource imperfect imitability are:

Historical dependence
Causally ambiguity
Social complexity

Resource?
Organization of the firm is concerned with (amongst other

things):

The development of new resource(s) / capabilities
The exploitation of current resource(s) / capabilities


Exploration vs exploitation and the multinational enterprise?

resides in the product and the value of the

inputs that are sacrificed to make that product”

The Concept of Value Created

a given resource bundle to the expected value (EV)

to be obtained (by the owners of these resources):

Below-Normal Performance: VC < EV
Normal Performance: VC = EV
Above-Normal Performance: VC > EV

This provides a relative conceptualization of how well a firm has performed with a given set of resources.

1995)
Subsidiary capability development (Birkinshaw & Hood, 1998; Luo &

Peng, 1999)
International strategic human resource management (ISHRM) (Schuler, Dowling & Decieri, 1993; Beechlor and Napier, 1996)

Exploitation vs Exploration?

corporate world and the academic fields of IB and

strategy have experienced an “alliance revolution” (Dunning, 1995).
While strategic alliances is a multi-faceted phenomenon, the RBV focuses on organizational learning.
RBV advances a core proposition that capabilities to learn from partners may be a tacit resource underlying a firm’s competitive advantage (Hamel, 1991).
For MNCs, the intensity and diversity of learning from local partners facilitate local knowledge acquisition and strengthen firm performance in host countries (Luo & Peng, 1999; Makino & Delios, 1996).
For local firms, learning from MNC parents is likely to enhance survivability and performance (Fahy et al., 2000; Lyles & Salk, 1996).

large MNCs, and entrepreneurship studies concentrate on small and

medium-sized enterprises (SMEs) within a domestic context.

How can some SMEs succeed abroad rapidly without going through different stages suggested by the “stage” model?

The answer typically boils down to the superb tacit knowledge about global opportunities (Peng, Hill & Wang, 2000)

unique institutional environment
Emerging market MNEs (EM-MNEs)

Developing capabilities constitutes “one

of the most important SOE strategies during the transitions” (Peng, 2000, p. 100)

Privatized firms
Entrepreneurial start-ups
Conglomerates

OFFSHORE

adoption of offshoring administrative and technical functions every six

months and over several years

Source: Lewin, A.Y. & Peeters, C. (2006) Offshoring Work: Business Hype or the Onset of Fundamental Transformation? Long Range Planning 39:221-239

& Peeters, C. (2006) Offshoring Work: Business Hype or

the Onset of Fundamental Transformation? Long Range Planning 39:221-239

& Peeters, C. (2006) Offshoring Work: Business Hype or

the Onset of Fundamental Transformation? Long Range Planning 39:221-239

& Peeters, C. (2006) Offshoring Work: Business Hype or

the Onset of Fundamental Transformation? Long Range Planning 39:221-239

& Peeters, C. (2006) Offshoring Work: Business Hype or

the Onset of Fundamental Transformation? Long Range Planning 39:221-239

& Peeters, C. (2006) Offshoring Work: Business Hype or

the Onset of Fundamental Transformation? Long Range Planning 39:221-239