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Differing paths to organizational performance: strategic implications of resource transformation and capability reinforcement

Published online by Cambridge University Press:  01 February 2023

Manisha Mathur Open the ORCID record for Manisha Mathur [Opens in a new window]
Manisha Mathur*
Affiliation:
James M. Hull College of Business, Augusta University, Allgood Hall E142, 1120 15th Street, Augusta, GA 30912, USA
*
*Corresponding author: E-mail: mmathur@augusta.edu
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Abstract

Globally, organizations have little insight into mechanisms that enable them to leverage their resources and capabilities successfully. In that endeavor, this study demonstrates that organizations can achieve competitive advantages through resource transformation and capability reinforcement. Using a conceptual framework grounded in the resource-based view and the dynamic capabilities theory in combination with Miles and Snow typology, we show how different types of organizations can succeed in the currently evolving competitive landscape by developing mechanisms that match the strategic performance measures of the organizations, such as return on assets or Tobin's Q. Notably, analyzing data obtained from 114 firms with seemingly unrelated regression, the findings reveal central roles of alternating mechanisms that drive differential organizational performance and enable the organizations to successfully deploy resources and capabilities.

Keywords

Analyzerscapability reinforcementdefendersorganizational performanceprospectorsresource transformationstrategic types

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Type
Research Article
Information
Journal of Management & Organization , First View , pp. 1 - 24
Copyright
Copyright © The Author(s), 2023. Published by Cambridge University Press in association with the Australian and New Zealand Academy of Management

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