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Performance of the Firms in a Free‐Trade Zone: The Role of Institutional Factors and Resources
Author(s) -
Akbari Mohsen,
Azbari Mostafa Ebrahimpour,
Chaijani Milad Hooshmand
Publication year - 2018
Publication title -
european management review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.784
H-Index - 32
eISSN - 1740-4762
pISSN - 1740-4754
DOI - 10.1111/emre.12163
Subject(s) - competitive advantage , business , order (exchange) , legitimacy , competition (biology) , industrial organization , government (linguistics) , resource (disambiguation) , comparative advantage , institutional theory , human resources , resource based view , politics , economic system , economics , marketing , international trade , finance , ecology , computer network , linguistics , philosophy , management , political science , computer science , law , biology
Many countries have tried to establish free zones in order to strengthen the competitive advantage of their local companies in global competition. Judging the role of free zones in the performance of companies without analyzing the relevant institutional factors can be confusing, especially in countries like Iran where the government extensively intervenes in the economy. In such economies, institutional factors (institutional support, political relationship, and legitimacy) coupled with resources (financial, human and physical resources) can be more effective at addressing companies’ performance. Using the resource‐based view (RBV) and institutional theory, this paper surveyed 151 companies located in the Anzali Free Trade and Industrial Zone (AFTIZ). The results show that the resources have a positive impact on the firms’ competitive advantage and performance. While institutional factors strengthen the resources, they do not moderate the relationship among resources, competitive advantage, and performance.