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Firm resources, competitive actions and performance: investigating a mediated model with evidence from the in‐vitro diagnostics industry
Author(s) -
Ndofor Hermann Achidi,
Sirmon David G.,
He Xiaoming
Publication year - 2011
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.901
Subject(s) - leverage (statistics) , competitive advantage , industrial organization , mediation , business , resource based view , resource (disambiguation) , knowledge management , microeconomics , marketing , economics , computer science , computer network , political science , law , machine learning
Building on the resource‐based view (RBV) and competitive dynamics literatures, this paper proposes that considering resources or actions independently offers an incomplete understanding of the drivers of superior performance. Instead, we hypothesize that resources enable competitive actions and that when these actions leverage the firm's resources, superior performance results. We tested these hypotheses with panelized data on the technological resources and competitive actions of firms in the in‐vitro medical diagnostic substance manufacturing industry. The results provide substantial support for our hypotheses, specifically with respect to mediation. Our theory and results underscore how the integration of the competitive dynamics and RBV literatures can significantly improve our understanding of firm performance. Copyright © 2011 John Wiley & Sons, Ltd.