published_or_final_version / Geography and Geology / Master / Master of Philosophy

This thesis answers calls for fine-grained studies of product diversification, in this case, predominantly using the resource based view of the firm. The context is UK providers of banking services. The thesis has developed the concept of resource matching. Resource matching combines levels of: resource heterogeneity, resource similarity and difference, and the external environmental setting of the organisation with the business performance of product diversification. Resource matching significantly increases the limited conceptual underpinning of diversification RBV by adapting and developing concepts from single firm RBV literature. Two new research strategies were developed to gather data on multiple resources and external factors. One was unused due to access issues during the credit crunch. The other, which was used, utilised multiple sources of publicly available information both qualitative and quantitative. These conceptual and methodological developments offer a way to restart the research on the impact of product diversification on business performance. This research has stalled due to conflicting results and methodological issues. Twenty nine providers of banking services in the UK where examined: building societies; other providers of retail banking services; providers of investment banking services; and combined banks which offer both investment and retail banking services. This thesis found: varying amounts of resource heterogeneity, resource bundles can be constructed from publicly available external data, performance in diversification does not adhere to the previously posited curvilinear pattern but to one of the greater the product diversification the greater the business performance risk and reward, with rewards being both positive and negative, and finally the external environment does vary within the industry. The results on product diversification performance suggest of a new way of looking at product diversification which might reconcile the previous conflicting results. A modified version of the conceptual model of resource matching was developed to take account of the results. Opportunities for further work include; studying other industries and providers of banking services in other countries, refining the single industry fine grained research methods and further developing the resource matching model.

<p>This dissertation examines what drives firms' divestiture activity and how it impacts their performance. Divestitures is defined here as the sale, spin-off or liquidation of assets from an ongoing organization. This dissertation seeks to understand what drives firms' reconfiguration activities via divestitures, and in turn how the divestiture activity impacts the future performance in terms of survival and growth. The dissertation identifies differences in the performance of a firm relative to their prior performance as a driver for divestitures, as well as other financial constraints. Moreover, it shows that, counter-intuitively, divestitures are a tool for growth and helps strong firms continue to grow and helps them avoid becoming a target for acquisitions; whereas in the case of weak firms, divesting does not help them avoid shutting down. This dissertation argues that divestitures are tools firms use to reconfigure and reallocate their financial and managerial resources; in the case of weak firms, divestitures are a mode used primarily to free the necessary monetary funds necessary for firms to address problems and regain competitiveness, whereas for strong firms divestitures are a tool to free scarce managerial resources that can be more efficiently allocated in areas that can provide further growth. This dissertation contributes to our understanding of what drives firms divestitures and corporate strategic decisions in general, and provides evidence that even firms coming from positions of strength can eliminate parts of the organization as a way to grow.</p> / Dissertation

Det är viktigt med en ständig tillförsel av mindre företag i ett land för att kunna erhålla en långsiktig ekonomisk tillväxt i landet. Många tekniska framsteg och nya uppfinningar kommer ifrån akademin, och för att detta ska nå allmänheten behöver forskarna hitta ett sätt att få ut sina idéer på marknaden. Idag är det svårt för företag skapade av forskare direkt från akademien att överleva, mycket för att de saknar den affärsmässiga kompetensen som krävs för att starta och driva ett framgångsrikt företag. Detta gjorde det intressant att undersöka vad denna typ av företag besitter för affärsmässig kompetens och hur de gör för att införskaffa sig denna.   Vi har utfört en kvalitativ fallstudie på tre högteknologiska spinoff-företag i Umeå som har tagit hjälp av företagsinkubatorn Uminova. Vi har genom intervjuer med grundare och företagsledare försökt bilda oss en uppfattning om vad för typ av affärsmässig kompetens som finns och har funnits i de tre företagen. Intervjuerna har varit semistrukturerade och baserade på teorier om viktiga kompetenser ett akademisk spinoff-företag bör inneha, samt vilka olika faser av utveckling ett sådant företag går igenom. Vi har undersökt kompetenserna genom ett resource based view, där vi sett kompetenser som immateriella resurser som skapar fördelar för företagen om de innehar dem.   De resultat vi erhöll och de slutsatser vi dragit är att som väntat fanns inom utbildningen ingen källa till affärsmässig kompetens, den kompetens som funnits hos grundaren har i så fall kommit genom erfarenheter från annat håll än genom akademien. I samband med att akademiska spinoff-företag erhåller en större mängd kapital från investerare eller finansiärer så införskaffar de ofta den stora delen av sin affärsmässiga kompetens genom rekrytering av personal. Detta görs dock ofta i för stor utsträckning eller i ett för tidigt skede och kan ha som resultat att företaget är tvungen att göra nedskärningar av den nyligen erhållna personalen.

A review of the innovation and diffusion literature indicates a considerable amount of research, where attention is given to a range of features which may support integration technologies adoption. However, some literature suggests that the findings derived from the study of large enterprises cannot be generalised and applied in SMEs due to the distinct characteristics of SMEs. Although the adoption of integration technologies is recognised as being different between large and small companies, the literature on its adoption by SMEs remains limited. Nevertheless, in existing work, there is a lack of studies emphasising the reasons why SMEs and large companies take the decision to adopt integration technologies, focusing specifically on the different factors. This thesis therefore identifies the significant differences in the way that SMEs and large companies approach integration technologies, based on the existing literature, theoretical diffusion theories, and resource-based theory. In doing so, the parameters that can be used to explain the adoption of integration technologies in SMEs and large firms are identified, as nature of organisations, company size, integration needs, adoption factors for SMEs and large organisations, and time. Additionally, adoption factors are found and classified into three categories: adoption factors explicit to SMEs, adoption factors explicit to large organisations, and common factors. Based on this, a conceptual model is introduced to explain the different factors that influence adoption between SMEs and large organisations. The empirical contexts of the research are one project on integration technologies adoption, and four case studies on a large firm and three SMEs, which are analysed using an interpretive and qualitative research approach. The evidence suggests that the empirical data complement the identified dimensions nature of organisations, integration needs, company size and time. The empirical data also confirm that the current integration technologies adoption factors reported in the literature can be classified into common factors, factors explicit to SMEs, and factors explicit to large firms, to support a more comprehensive view of this area. An additional factor perceived future prospect has been considered as an influence on adoption in large organisations. The findings of this research can be useful to guide analysts and researchers in determining critical aspects of the complex issues involved for integration technologies adoption, and lead to suggestions for further valid research.

Over the past two decades, the resource-based view of the firm (RBV) has emerged as one of the more influential paradigms from the field of strategic management. However, the theory has been subjected to a number of criticisms, particularly related to the use of methodologies in past research. Many RBV studies have tended to use averaged findings across broad industry samples. Approaches reliant on "averaging" methods will only uncover what is the case for the average, "representative" firm, and will not identify those unique, firm-specific assets that can result in sustained profitability. In order to examine the implications of methodological choice and the RBV, the subjective approach of Q methodology was used in a sample of music industry firms to identify a key resource set for the context of interest, identify strategic groups within the sample based on resource emphasis, and explore the ways in which managers use their resources to generate firm profits. A comparative approach examined resource outcomes by performance group, over multiple levels of analysis. The findings revealed (i) a number of relevant and new, context-specific resources from the music industry, (ii) the identification of three distinct clusters of firms that emerged from the sample based on resource preferences, firm characteristics, and managerial perceptions (iii) key resource findings that varied by level of analysis and by firm performance, and (iv) distinct processes through which the resources become valuable at the level of the firm--even when the same resources are considered. The outcomes of this thesis illustrate how methodological choice can affect findings when using the RBV to uncover important sources of advantage. Furthermore, the outcomes in this thesis point to the weaknesses of many past RBV studies that investigate the impact of resources and capabilities on firm performance, and remind scholars that a defining feature of the RBV is that its intention was to identify sources of advantage at the level of the firm. Moreover, the findings show that past RBV research using aggregated data across multi-industry samples can be misleading in its prescription to managers.

Thesis (M.A.)--Ohio University, June, 2008. / Title from PDF t.p. Includes bibliographical references.

This study has addressed a central issue, a gap in our existing knowledge, literature, analysis, an understanding of the role of state in resource seeking. Whilst the role and operations of the firm, has long been a primary focus of research in Strategic Management, analysis of the role and influence of the state with respect to firms has been relatively under-researched. To investigate this core research question, the study identified and applied the well-established theoretical and methodological approach, the Resource Based View of the ‘firm’ (RBV), developing it further to incorporate and mainstream the factor of the state and elaborating a fresh analytical approach, termed the resource-based view of the ‘state’ (RBS). The new RBS conceptual framework has been proposed by extending the central proposition of the RBV of the firm- that a firm must acquire and control valuable and non-substitutable resources and capabilities, into a multidisciplinary integration of both the institution based view (IBV) approach and the role of the contemporary state in providing resources and capabilities to firms. The central problematic this research is seeking to explore is the new resource-based approach of the Indian state. The state is seeking the acquisition of energy assets overseas, using institutional support mechanisms and the deployment of specific state capabilities and resources. Using an in-depth case analysis of the Indian state, this thesis provides evidence of the resource-based approach, in which the state provides a strategic intent for its firms, creates strategic markets for the firms to compete in as well as providing intangible resources. The state is also presented as a source of new intangible resources that provide competitive advantage and insulate firms from competition in specific markets. Insights from elite interviewees representing a cross-section of institutional actors such as academics, ambassadors, senior government officials, policy planners, advises the state, personnel from state-owned and private resource seeking firms as well as from the fourth estate, in the thesis has provided a rich contextual information to evidence resource seeking in the contemporary Indian state. The key contribution of the new conceptual framework, the RBS model has been in integrating a multidisciplinary approach to the traditional resource based view theory of the firm. Using the institutional context of the Indian state, this thesis has provided an appropriate context for the validation of the RBV of the firm.

KIBS providers are organizations that perform knowledge intensive business activities mainly for other organizations and in the present age have become key components of industrialized economies. The primary purpose of KIBS providers is to deliver customized solutions to clients through the implementation of three core knowledge processes: knowledge acquisition, knowledge recombination, and knowledge diffusion. Existing research has predominantly focused on understanding the importance of these providers in creating a competitive edge for their clients. However, little is known in terms of how such providers can create an improved competitive position for themselves. This research helps to understand whether the use of knowledge processes influences the competitive advantage¬ of KIBS providers. A guiding framework developed from literature posits that such generic knowledge processes may provide competitive advantage for a given provider if they are transformed into valuable, rare, inimitable, and well-exploited resources (VRIO). The study follows a holistic multiple case research design of three IT service providers to refine the existing theory on the influence of knowledge processes on the competitive advantage of KIBS providers. Data was collected through interviews of employees occupying different roles in a company to provide their perspectives on the various parts of the framework. The findings of this study reveal that participants perceive knowledge processes to provide competitive advantage to their companies. However, data analysis using the VRIO framework indicates that knowledge processes do not confer competitive advantage by themselves, but rather through an emerging theme called delivery. Findings also indicate that delivery influences other factors of competitive advantage. The study contributes to the existing literature as it leads to a refined understanding of the relationship between knowledge processes and competitive advantage by highlighting the importance of delivery as a dynamic capability. The study has practical implications for managers as it informs them that delivery improves brand name, reduces costs, and helps to achieve client satisfaction.

Corporate strategy forms the platform to consider fundamental strategic alternatives for an organisation. The recent financial crisis has been a sobering reality check for most companies. Diversification or specialisation are two of the more common configurations that corporate strategy theory would propose to grow and sustain financial performance, particularly during though times. Research conducted in developed markets since the 1950’s have tried to establish if diversification creates or destroys value. Conglomerates, defined as unrelated diversification, are often believed to translate into diversification discounts in developed economies. The application of this theory has been questioned with respect to emerging markets and the empirical results in these markets have been mixed. A conceptual approach using different approaches, institutional, resourcebased, adaptive and learning theories was used to try and explain the deviation in results attained by conglomerates within emerging markets and those in developed markets. Specific arguments and propositions were developed based on these different theoretical lenses for South Africa. These propositions were tested by statistical analysis of organisations listed on the Industrial sector of the Johannesburg Securities Exchange (JSE). The organisations were categorised into conglomerates or focused groups. The two groups were compared in terms of financial measures from the period 2001 to 2009 to determine which group performed better. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted