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Relationship Between Competitive Intensity, Internal Resources, and Firm Performance: Evidence from Indian ITES Industry
Author(s) -
Lahiri Somnath
Publication year - 2013
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.21545
Subject(s) - business , competition (biology) , sample (material) , industrial organization , competitive advantage , capital intensity , tertiary sector of the economy , service (business) , marketing , human capital , economics , market economy , ecology , chemistry , chromatography , biology
Abstract The purpose of this article is to investigate how competitive intensity impacts the relationship between crucial firm resources (human capital, organizational capital, management capability) and firm performance. Using a sample of 105 service providers from the Indian information technology–enabled services (ITES) industry, I find that competitive intensity positively moderates the relationship between firm resources and firm performance such that the relationships become stronger when competitive intensity is high than when it is low. Results imply that top managers' evaluation of the performance implications of internal firm resources are significantly shaped by the perceptions of intensity of competition encountered by their firms. © 2013 Wiley Periodicals, Inc.