This document first has a comprehensive summary of the conclusion and hypotheses of all papers need to be read. Then, an extensive summary is given per paper. At last, college notes are added as well.
Summary of the papers
L2: competitive dynamics (external environment)
Performance implications of delayed competitive responses: evidence from the US retail indust
(Boyd & Bresser)
Deductive:
H1: responder performance and response delay are related in an inverted U-shape manner:
lower performance will result for fast and late responders, and higher performance for firms
with intermediate response delays
H2: First mover performance and response delay are related in a linear matter: as response
delays are longer, performance decreases are smaller and vice versa.
Conclusion: Lower performance for fast and slow responders, and higher performance for responders
with intermediate response delays
The clock is ticking! Executive temporal depth, industry velocity, and competitive aggressiveness
(Nadkarni et al. )
Deductive:
H1: Industry velocity will moderate the relationship between executive PTD and competitive
aggressiveness such that this relationship will be positive in low-velocity industries but
negative in high-velocity industries.
H2: industry velocity will moderate the relationship between executive FTD and competitive
aggressiveness such that this relationship will be linear in low-velocity industries, but inverted
U in high-velocity industries.
H3: industry velocity will moderate the relationship between competitive aggressiveness and
firm performance such that this relationship will be more positive in high-velocity industries
than in low-velocity industries (marginally supported)
Conclusion: Executive PTD promoted aggressiveness in low-velocity industries but hindered it in high-
velocity industries, whereas FTD promoted aggressiveness in low-velocity industries but had an
inverted U-relationship in high-velocity industries
L3: RBV, KBV, dynamic capabilities (internal environment)
The dynamic interplay of capability strengths and weaknesses: investigating the bases of temporary
competitive advantage (Sirmon et al)
Deductive:
H1: there is positive curvilinear relationship between a firm’s strength set and relative
performance. The relationship grows increasingly positive as the firm’s strength set increases
H2: there is a negative curvilinear relationship between the firm’s weakness set and relative
performance. The relationship grows increasingly negative as the firm’s weakness set
degrades (grows larger).
H3a: the integration of a high strength set with a low weakness set has a positive effect on
relative performance.
H3b: the integration of a low strength set with a high weakness set has a negative effect on
relative performance.
, H3c: the integration of a high strength set with a high weakness set has a positive effect on
relative performance.
H3d: precarious advantage produces greater variation in performance outcome than does a
robust advantage.
H4a: higher munificence leads to a decrease in firm’s weakness sets over time
H4b: higher prior performance leads to an increase in firms’ strength sets over time
H4c: higher prior performance leads to a decrease in firms’ weakness sets over time
Conclusion: Both strengths and weaknesses matter for competitive advantages via its empirical
correlate, relative performance. Firm’s set of capability strengths has an increasingly positive
relationship with relative performance due to synergies. Strong negative relationship instead of
negative curvilinear relationship between direct effects of weakness sets on competitive advantage
and relative performance. Firms holding a precarious advantage (less durable) could benefit by
directing profits toward the elimination of weakness, thereby reducing their vulnerability to attacks
and prolonging their advantage
On the contingent value of dynamic capabilities for competitive advantage: the nonlinear
moderating effect of environmental dynamism (Schilke)
Deductive:
H1: The relationship between alliance management capability and competitive advantage is
strongest under intermediate levels of environmental dynamism but comparatively weaker
when dynamism is low or high
H2: the relationship between new product development capability and competitive
advantage is strongest under intermediate levels of environmental dynamism but
comparatively weaker when dynamism is low or high
Conclusion: there is an inverted U-shaped contingent relationship, where the effects of product
development and alliance management capabilities on competitive advantages are highest when
environmental dynamism is moderate and comparatively lower when environmental dynamism is
low or high
L4: CSR and competitive advantage
Corporate Social Responsibility and shareholder reaction: The environmental awareness of
investors (Flammer)
Deductive:
H1: Shareholders react positively to the announcement of eco-friendly corporate initiatives
H2: shareholders react negatively to the announcement of eco-harmful corporate events
H3: shareholders’ negative reaction to the announcement of eco-harmful corporate events
increases over time
H4: Shareholders’ positive reaction to the announcement of eco-friendly corporate initiatives
decreases over time
H5a: Shareholders of companies with stronger environmental performance react less
positively to the announcement of eco-friendly initiatives
H5b: shareholders of companies subject to more severe environmental concerns react more
positively to the announcement of eco-friendly initiatives
H6a: shareholders of companies with stronger environmental performance react less
negatively to the announcement of eco-harmful behavior
, H6b: Shareholders of companies subject to more severe environmental concerns react more
negatively to the announcement of eco-harmful events
Conclusion: 3 main insights:
Shareholders react positively to the announcement of eco-friendly initiatives, and negatively
to the announcement of eco-harmful behavior
External pressure to become green is setting the institutional norm of environmental CSR
the more the norm is institutionalized, the more that eco-harmful behavior has a negative
effect on perceptions of a firm < > the less shareholders reward firms for eco-friendly
initiatives (Positive reaction to the announcement has significantly decreased, whereas the
negative reaction on eco-harmful behavior announcements has significantly increased)
Environmental CSR is a resource with decreasing marginal returns the higher the stock of
environmental CSR , the less shareholders reward and punish on firm’s behavior
Mind the gap: the interplay between internal and external actions in the case of corporate social
responsibility (Hawn & Ioannou, 2016)
Deductive:
H1: the more prior internal and current external actions that a firm undertakes, the higher its
market value
H2: the wider the gap between a firm’s current external and prior internal actions, the lower
its market value
Conclusion: Gap between external and internal actions is on average due to insufficient external
actions. The wider the gap, the more a firm is penalized in terms of market value. Internal and
external CSR actions jointly have a significant positive association w market value
L5: human capital and competitive advantage
Human capital and learning as a source of sustainable competitive advantage (Hatch & Dyer)
Deductive
H1a: higher human resource education levels increase learning by doing performance (limited
support)
H1b: pre-employment screening tests improve learning by doing performance
H2: greater investments in human resource training increase learning by doing performance
H3: Greater deployment of human capital to learning activities increases learning by doing
performance
H4a: greater prior industry experience in newly hired human resources reduces learning by
doing performance
H4b: Greater human resource turnover reduces learning by doing performance
Conclusion: Finding: managing the selection, development, and deployment of human capital can
significantly improve learning by doing and firm performance. Firms that attempt to obtain human
capital by hiring operators with experience in rival firms suffer significant performance losses (less
productive + dynamic adjustment costs). Impact of turnover on learning performance reveals the
challenge of imitating value of human capital without taking time to develop it
Human capital matters: market valuation of firm investments in training and the role of
complementary assets (Riley et al.)
Deductive
, H1: a signal of firms’ effective investments in human capital leads to a positive stock price
reaction
H2: the higher the firms’ R&D intensity, the greater the positive stock reaction to the signal of
effective investments in human capital
H3: the higher the firms’ physical capital intensity, the lesser the positive stock price reaction
to the signal of effective investments in human capital
H4: the higher the interaction of R&D intensity and physical capital intensity, the greater the
positive stock price reaction to the signal of effective investments in human capitals
H5: the higher the firms’ advertising intensity, the greater the positive stock price reaction to
the signal of effective investments in human capital
Conclusion: Significant positive impact of human capital interacting with R&D intensity and physical
capital intensity, and human capital interacting with advertising intensity support logic of
complementarities
L6: innovation and competitive advantage
In search of complementarity in innovation strategy: internal R&D and external knowledge
acquisition (Cassiman & Veugelers)
Inductive:
3 steps
o Directly test for existence of complementarity (productivity approach) combined with
adoption (indirect) approach
o Multinominal logit to understand variables affecting the choice of different
innovation strategies
o Use latter information to refine our search for complementarity
Conclusion: Existence of complementarity between internal and external innovation activities. Extent
to which innovation process relies on basic R&D affects the strength of the complementarity between
innovation activities context specific
Entry timing and innovation strategy in feature phones (klingebiel & Joseph, 2016)
Inductive:
Qualitative: watch meetings, see how decisions were made, talk to managers
Quantitative: check the data (mentions, refers)
Conclusion: firms entry timing seems not to impact performance per se, but aligning innovation
portfolio strategy with timing does, especially as regards breadth (early entry) and selectiveness (late
entry)
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