The dynamic managerial capabilities literature has developed over the past decade to the point where a review and synthesis of relevant literature can move the scholarly conversation forward. The concept of dynamic managerial capabilities—the capabilities with which managers create, extend, and modify the ways in which firms make a living—helps to explain the relationship between the qualit…
This paper is a response to Bandura’s 2012 Guest Editorial, which defends the functional properties of self-efficacy by criticizing published studies that have demonstrated a negative relationship between self-efficacy and performance at the within-person level of analysis. We focus on the theoretical and methodological criticisms that Bandura has made in relation to our (Yeo & Neal) 2006 pie…
Immigration from abroad has increased dramatically since the 1960s, as workers from less developed countries have moved to the US in search of higher wages. One way immigration affects the economy is through the labor market. At the national level, immigration is widely believed to harm native workers with similar skills by reducing their wages or their probability of obtaining a job. Some nati…
We estimate a structural model of resource allocation on work hours of Federal Reserve bank supervisors to disentangle how supervisory technology, preferences, and resource constraints impact bank outcomes. We find a significant effect of supervision on bank risk and large technological scale economies with respect to bank size. Consistent with macroprudential objectives, revealed supervisory p…
In this study, the authors evaluate the usefulness of customer lifetime value (CLV) as a metric for customer selection and marketing resource allocation. They first develop a dynamic framework for measuring CLV that enables managers (1) proactively to maintain and improve customer relationships through marketing contacts across various channels and (2) simultaneously to maximize customer lifeti…
Firms spend billions of dollars on advertising every year but remain uncertain about allocation across various advertising vehicles. Allocation decisions are even more complex as online advertising has proliferated and consumers? media usage patterns have become more fragmented. To determine advertising effectiveness, the authors group firms? advertising vehicle choices into three theoretically…
The informal economy comprises business activities that are unregistered and unregulated but not otherwise illegal (Hart, 2006). Studying informal activity yields important insights for mainstream theories of management, pointing to areas for new theorizing on the boundaries of the firm, diversification, dynamic capabilities, absorptive capacity, property rights, governance, stakeholder theory,…
Our study demonstrates empirically that the choice of resource allocation strategy affects innovation performance. Allocating resources to a broader range of innovation projects increases new product sales, an effect that appears to outweigh that of resource intensity. In addition, we find that the performance benefit of breadth is higher for firms that allocate resources selectively at later s…
Models of firm microstructure are becoming now a standard building block in macroeconomics, trade, and development. This literature builds on the recognition that firm heterogeneity and the allocation of resources across firms plays a key role in determining aggregate productivity and the gains from trade. Barriers to the efficient allocation of resources across firms have been recently recogni…
We integrate insights from organization design, economic game theory, and social psychology to examine the role of prior resource allocation and communication in alleviating behavioral uncertainty arising in interunit coordination settings. We use the context of post-acquisition coordination, focusing on the extent to which routines created under one organizational architecture (i.e., interorga…
The purpose of this editorial is to review the basic definitions, assumptions, and propositions offered by the resource-based, strategic factor market, and dynamic capability literature streams. Considering the underlying definitions and assumptions associated with these approaches leads directly to a set of refutable propositions that highlight the distinct insights offered by each of these li…
Resource-based theory (RBT) has become one of the dominant perspectives in strategic management, and a very large body of work has developed; yet, there are aspects of RBT that remain underexplored and less developed than others. One of these aspects concerns how the heterogeneous resource positions that lie at the core of RBT come to exist. Two separate mechanisms have been described in the li…
Previous research on capital investment has identified a tendency in multibusiness firms toward cross-subsidization from well-performing to poorly performing divisions, a phenomenon that has previously been attributed to principal-agent conflicts between headquarters and divisions (Stein, 2003). In this paper, we argue that cross-subsidization reflects a more general tendency toward even alloca…
In this study, we examine how the relationship between the level of strategic change in the pattern of resource allocation and firm performance differs between firms led by outside CEOs and those led by inside CEOs. Based on longitudinal data on the tenure histories of 193 CEOs who left office between 1993 and 1998, we find that the level of strategic change has an inverted U-shaped relationshi…
A firm that manages for stakeholders allocates more resources to satisfy the needs and demands of its legitimate stakeholders than would be necessary to simply retain their willful participation in the firm's productive activities. We explain why this sort of behavior unlocks additional potential for value creation, as well as the conditions that either facilitate or disrupt the value-creation …
The marketing profession is being challenged to assess and communicate the value created by its actions on shareholder value. These demands create a need to translate marketing resource allocations and their performance consequences into financial and firm value effects. The objective of this article is to integrate the existing knowledge on the impact of marketing on firm value. The authors fi…
The authors develop a conceptual framework of the factors that motivate a retailer's decision to rely on demand conditions and past prices in setting current and future prices. Specifically, they examine the circumstances under which retailers choose demand-based pricing versus past-price dependence for different brands and categories. Given scarce resources and costs of price adjustments, dema…
The objective of this article is to analyze the strategies or patterns of adaptation of firms for responding to environmental requirements or expectations. We specifically analyze the influence of the different pressure agents or stakeholders on the degree of proactivity of these patterns. We therefore propose and validate four types of environmental response pattern, representing particular co…
I exploit the exogenous component of a formula-based allocation of government funds across banks in Argentina to test for financial constraints and underinvestment by local banks. Banks are found to expand lending by $0.66 in response to an additional dollar of external financing. Using novel data to measure risk and return on marginal lending, I show that the profitability of lending does not …
Technologies are often amenable to uses for a range of markets, but yet are often underutilized, and consequently not all value is extracted from them. This article presents a longitudinal case study of a firm that successfully applied a fungible technology to products for its served market, but was unable to tap its considerable potential in new markets. The processes of resource allocation an…