Determinants of firm performance: a structural equation approach
Conference Paper
Overview
Research
Additional Document Info
View All
Overview
abstract
This research analyzes specific determinants of firm
Performance (FP) taking the Resource Based View (RBV) theory into account.
Our conceptual model defines the Dynamic Capabilities (DC) as the result of
firm’s Learning (LO), Market (MO) and Entrepreneurial Orientations (EO),
which mediate the development of Competitive Advantages (CA) and
improving firm Performance (FP). For the first time, the mediator role of DC
between specific business orientations – MO, EO and LO – and the
development of CA and FP is analyzed. The study supports the view that DC
enhances CA (Differentiation and Cost Leadership) as well as enhances FP.
This research analyzes specific determinants of firm Performance taking the Resource Based View (RBV) theory to explaining how firms achieve sustained competitive advantages based on their VRIN (valuable, rare, inimitable and not replaceable) resources and capabilities (BARNEY, 1991). TEECE et al. (1997) introduced the concept of Dynamic Capabilities (DC) as an RBV extension. Our conceptual model defines these capabilities as the result of firm’s Learning, Market and Entrepreneurial Orientations, which mediate the development of Competitive Advantages (CA) and improving firm Performance.
