The appropriate resources are necessary but insufficient to achieve a competitive advantage. Resources must also be managed effectively. Herein, we develop a resource management process model composed of three components that can lead to a competitive advantage. These components include the resource inventory (evaluating, adding, and shedding), resource bundling, and resource leveraging. We examine resource management in family firms and thus explore the unique characteristics of five resources and attributes of family firms that provide potential advantages over nonfamily firms. The resources are human capital, social capital, patient capital, survivability capital, along with the governance structure attribute.
Get full access to this article
View all access options for this article.
References
1.
AdlerP.S. & KwonS.–W. (2002).Social capital: Prospects for a new concept. Academy of Management Review, 27, 17–40.
2.
AhujaG. & LampertC.M. (2001).Entrepreneurship in the large corporation: A longitudinal study of how established firms create breakthrough inventions. Strategic Management Journal, 22(6, 7), 521–543.
3.
AmitR., LucierC., HittM.A. & NixonR.D. (2002).Strategies for creating value in the entrepreneurial millennium. In M.A. Hitt, R. Amit, C. Lucier, & R.D. Nixon (eds.), Creating value: Winners in the new business environment, 1–12. Oxford, UK: Blackwell Publishing.
AstrachanJ.H. & KolenkoT.A. (1994).A neglected factor explaining family business success: Human resource practices. Family Business Review, 7, 251–262.
6.
BarkemaH.G. & VermeulenF. (1998).International expansion through start–up or acquisition: A learning perspective. Academy of Management Journal, 41(1), 7–26.
7.
BarnettW.P., GreveH.R. & ParkD.Y. (1994).An evolutionary model of organizational performance. Strategic Management Journal, 15(special issue), 11–28.
8.
BarneyJ. (1986).Strategic factor markets: Expectations, luck, and business strategy. Management Science, 32, 1231–1241.
9.
BarneyJ. (1991).Firm resources and sustained competitive advantage. Journal of Management, 17, 99–120.
10.
BarneyJ. & ArikanA.M. (2001).The resource–based view: Origins and implications. In M.A. Hitt, R.E. Freeman, & J.R. Harrison (eds.), Handbook of strategic management, 124–188. Oxford, UK: Blackwell Publishers.
BjuggrenP.–O. & SundL.–G. (2001).Strategic decision making in intergenerational successions of small– and medium–size family–owned businesses. Family Business Review, 14, 11–24.
13.
BrushT.H. & ArtzK.W. (1999).Toward a contingent resource–based theory: The impact of information asymmetry on the value of capabilities in veterinary medicine. Strategic Management Journal, 20, 223–250.
14.
BurackE.H. & CaleroC.M. (1981).Seven perils of family business. Nation's Business, January, 62–64.
15.
BurgelmanR.A. & DozY.L. (2001).The power of strategic integration. Sloan Management Review, 42(3), 28–38.
16.
BurtR.S. (1997).The contingent value of social capital. Administrative Science Quarterly, 42, 339–365.
17.
Cabrera–SuarezK., De Saa–PerezP. & Garcia–AlmeidaD. (2001).The succession process from a resource– and knowledge–based view of the family firm. Family Business Review, 14, 37–47.
18.
CarpenterM.A., SandersW.G. & GregersenH.B. (2001).Bundling human capital with organizational context: The impact of international assignment experience on multinational firm performance and CEO pay. Academy of Management Journal, 44, 493–511.
19.
ColemanJ.S. (1988).Social capital in the creation of human capital. American Journal of Sociology, 94, S95––S120.
20.
CooperA.C. (2002).Networks, alliances and entrepreneurship. In M.A. Hitt, R.D. Ireland, S.M. Camp, & D.L. Sexton (eds.). Strategic entrepreneurship: Creating a new integrated mindset, 203–222. Oxford, UK: Blackwell Publishers.
21.
CovinT.J. (1994a).Perceptions of family–owned firms: The impact of gender and educational level. Journal of Small Business Management, 32(3), 29–39.
22.
CovinT.J. (1994b).Profiling preferences for employment in family–owned firms. Family Business Review, 7, 287–296.
23.
D'AveniR. (1994). Hypercompetition: Managing the dynamics of strategic maneuvering. New York: Freedom Press.
24.
DavisP.S. & HarvestonP.D. (2000).Internationalization and organizational growth: The impact of Internet usage and technology involvement among entrepreneur–led family businesses. Family Business Review, 13, 107–120.
25.
DobrzynskiJ.H. (1993).Relationship investing. Business Week, 3309, 68–75.
26.
DonnelleyR. (1964).The family business. Harvard Business Review, 42(2), 93–105.
27.
DreuxD.R.IV (1990).Financing family businesses: Alternatives to selling out or going public. Family Business Review, 3, 225–243.
28.
DunnB. (1995).Success themes in Scottish family enterprises: Philosophies and practices through the generations. Family Business Review, 8, 17–28.
29.
DyerJ.H. & SinghH. (1998).The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23, 660–679.
30.
FiegenerM.K., BrownB.M., PrinceR.A. & FileK.M. (1996).Passing on strategic vision. Journal of Small Business Management, 34(3), 15–26.
31.
FinkelsteinS. & HambrickD.C. (1990).Top–management tenure and organizational outcomes: The moderating role of managerial discretion. Administrative Science Quarterly, 35, 484–503.
32.
FinkelsteinS. & HambrickD.C. (1996). Strategic leadership: Top executives and their effect on organizations. St. Paul: West.
33.
GalloM.A. & VilasecaA. (1996).Finance in family business. Family Business Review, 9, 387–402.
34.
GalunicD.C. & RodanS. (1998).Resource recombinations in the firm: Knowledge structures and the potential for Schumpeterian innovation. Strategic Management Journal, 19(12), 1193–1201.
35.
GlaisterK.W. & BuckleyP.J. (1996).Strategic motives for international alliance formation. Journal of Management Studies, 33, 301–332.
36.
Gomez–MejiaL.R., Nunez–NickelM. & GutierrezI. (2001).Role of family ties in agency contracts. Academy of Management Journal, 44(1), 81–95.
37.
GulatiR. (1998).Alliances and networks. Strategic Management Journal, 19, 293–317.
38.
HabbershonT.G. & WilliamsM.L. (1999).A resource–based framework for assessing the strategic advantages of family firms. Family Business Review, 12, 1–25.
39.
HamelG. (2000). Leading the revolution. Boston: Harvard Business School Press.
40.
HaynesG.W., WalkerR., RoweB.R. & HongG.–S. (1999).The intermingling of business and family finances in family–owned businesses. Family Business Review, 12, 225–239.
41.
HittM.A., BiermanL., ShimizuK. & KochharR. (2001).Direct and moderating effects of human capital on strategy and performance in professional service firms: A resource–based perspective. Academy of Management Journal, 44, 13–28.
HittM.A., DacinM.T., LevitasE., ArregleJ.L. & BorzaA. (2000).Partner selection in a merging and developed market context: Resource–based and organizational learning perspectives. Academy of Management Journal, 43, 449–467.
44.
HittM.A. & IrelandR.D. (1985).Corporate distinctive competence, strategy, industry and performance. Strategic Management Journal, 6, 273–293.
HittM.A., IrelandR.D., CampS.M. & SextonD.L. (2002).Strategic entrepreneurship: Integrating entrepreneurial and strategic management perspectives. In M.A. Hitt, R.D. Ireland, S.M. Camp, and D.L. Sexton, (eds.), Strategic entrepreneurship: Creating a new integrated mindset, 1–16. Oxford, UK: Blackwell Publishers.
47.
HittM.A., IrelandR.D. & HoskissonR.E. (2001). Strategic management: Competitiveness and globalization. Cincinnati, OH: Southwestern College Publishing Company.
48.
HolbrookD., CohenW.M., HounshellD.A. & KlepperS. (2000).The nature, sources and consequences of firm differences in the early history of the semiconductor industry. Strategic Management Journal, 21(Special Issue), 1017–1041.
49.
HortonT.P. (1986).Managing in a family way. Management Review, 75(2), 3.
50.
InkpenA.C. (2000).A note on the dynamics of learning alliances: Competition, cooperation, and relative scope. Strategic Management Journal, 21, 775–779.
51.
IrelandR.D., HittM.A., CampS.M. & SextonD. L. (2001).Integrating entrepreneurship actions and strategic management actions to create firm wealth. Academy of Management Executive, 15(1), 49–63.
52.
IrelandR.D., HittM.A. & VaidyanathD. (2002).Managing strategic alliances to achieve a competitive advantage. Journal of Management, 28(3), 413–446.
53.
JensenM.C. & MecklingW.F. (1976).Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360.
54.
KangD. (2000). The impact of family ownership on performance in public organizations. A study of the U.S. Fortune 500, 1982–1994. 2000 Academy of Management Meeting, Toronto.
55.
KarimS. & MitchellW. (2000). Path–dependent and path–breaking change: reconfiguring business resources following acquisitions in the U.S. medical sector, 1978–1995. Strategic Management Journal, 21(Special Issue), 1061–1081.
56.
KhannaT., GulatiR. & NohriaN. (1998).The dynamics of learning alliances: Competition, cooperation and relative scope. Strategic Management Journal, 19, 193–210.
LeeC., LeeK. & PenningsJ.M. (2001).Internal capabilities, external networks, and performance: A study on technology based ventures. Strategic Management Journal, 22(special issue), 615–640.
59.
LeiD., HittM.A. & BettisR. (1996).Dynamic core competencies through meta–learning and strategic context. Journal of Management, 22, 549–569.
60.
LeidtkeJ.M. (2001).Strategy formulation: The roles of conversation and design. In M.A. Hitt, R.E. Freeman & J.R. Harrison (eds.), Handbook of strategic management, 70–93. Oxford, U.K.: Blackwell Publishers.
LitzR.A. (1995). The family business: Toward definitional clarity. Proceedings of The Academy of Management, 100–104.
63.
LounsburyM. & GlynnM.A. (2001).Cultural entrepreneurship: Stories, legitimacy, and the value of acquisition of resources. Strategic Management Journal, 22, 545–564.
64.
LubatkinL.H., LaneP.J. & SchulzeW.S. (2001).Agency relationships in firm governance. In M.A. Hitt, R.E. Freeman, & J.R. Harrison (eds.), Handbook of strategic management, 124–188). Oxford, UK: Blackwell Publishing.
65.
MahoneyJ.T. (1995).The management of resources and the resource of management. Journal of Business Research, 33, 91–101.
66.
MakadokR. (2001).Toward a synthesis of the resource–based and dynamic–capability view of rent creation. Strategic Management Journal, 22, 387–401.
67.
Management Review.1981. All in the family. 70(7), 4–5.
68.
McConaughyD.L. & PhillipsG.M. (1999).Founders versus descendants: The profitability, efficiency, growth characteristics and financing in large, public, founding–family–controlled firms. Family Business Review, 12, 123–132.
69.
McGrathR. (1995).Advantage from adversity: Learning from disappointment in internal corporate ventures. Journal of Business Venturing, 10, 121–142.
70.
McGrathR.G. (1999).Falling forward: Real options reasoning and entrepreneurial failure. Academy of Management Review, 24, 13–30.
71.
McGrathR.G. & MacMillanI. (2000). The entrepreneurial mindset. Boston: Harvard Business School Press.
72.
MeyerA.D. (1991).What is strategy's distinctive competence?Journal of Management, 17, 821–833.
73.
MillerD. & ShamsieJ. (1996).The resource–based view of the firm in two environments: The Hollywood film studios from 1936 to 1965. Academy of Management Journal, 39, 519–543.
74.
MosakowskiE. (2002).Overcoming resource disadvantages in entrepreneurial firms: When less is more. In M.A. Hitt, R.D. Ireland, S.M. Camp, & D.L. Sexton (eds.), Strategic entrepreneurship: Creating a new integrated mindset, 106–126. Oxford, UK: Blackwell Publishing.
75.
NahapietJ. & GhoshalS. (1998).Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2): 242–266.
76.
PenroseE.T. (1959). The theory of the growth of the firm. New York: John Wiley & Sons.
77.
PriemR.L. & ButlerJ.E. (2001).Is the resource–based view a useful perspective for strategic research?Academy of Management Review, 26, 22–40.
78.
PriemR.L. & CycyotaC.S. (2001).On strategic judgment. In M.A. Hitt, R.E. Freeman, & J.R. Harrison (eds.), Handbook of strategic management, 403–519. Oxford, UK: Blackwell Publishing.
79.
ReynoldsL. (1992).Changing mind–sets: Taking the long view of investment planning. Management Review, 81(12), 31–33.
80.
RossJ. & StawB.M. (1993).Organizational escalation and exit: Lessons from the Shoreham nuclear power plant. Academy of Management Journal, 36, 701–732.
81.
RothaermelF.T. (2001).Incumbent's advantage through exploiting complementary assets via interfirm cooperation. Strategic Management Journal, 22(special issue), 687–699.
SchweigerD.M., SandbergW.R. & RaganJ.W. (1986).Group approaches for improving strategic decision–making: A comparative analysis of dialectical inquiry, devil's advocacy and consensus. Academy of Management Journal, 29(1), 51–71.
84.
ShaneS. & VenkataramanS. (2000).The promise of entrepreneurship as a field of research. Academy of Management Review, 25, 217–226.
85.
SharmaP., ChrismanJ.J., ChuaJ.H.(eds.). (1996). A review and annotated bibliography of family business studies. Assinippi Park: Kluwer Academic Publishers.
86.
SmithK.G. & DeGregorioD. (2002).Bisociation, discovery and the role of entrepreneurial action. In M.A. Hitt, R.D. Ireland, S.M. Camp, & D.L. Sexton (eds.), Strategic entrepreneurship: Creating a new integrated mindset, 129–150. Oxford, U.K.: Blackwell Publishing.
87.
TeeceD.J. (1992).Foreign investment and technological development in Silicon Valley. California Management Review, 34(2), 88–106.
TripsasM. & GavettiG. (2000).Capabilities, cognition & inertia: Evidence from digital imaging. Strategic Management Journal, 21(Special Issue), 1147–1162.
90.
VenkataramanS. & SarasvathyS.D. (2001).Strategy and entrepreneurship. In M.A. Hitt, R.E. Freeman, & J.R. Harrison (eds.), Handbook of strategic management, 650–668. Oxford, U.K.: Blackwell Publishing.
91.
VermeulenF. & BarkemaH. (2001).Learning through acquisitions. Academy of Management Journal, 44(3), 457–476.
92.
WernerfeltB. (1984).A resource–based view of the firm. Strategic Management Journal, 5, 171–180.
93.
WiersemaM.F. & BantelK.A. (1992).Top management team demography and corporate strategic change. Strategic Management Journal, 35(1), 91–121.
