Title: Firm performance and market expansion from the point of view of resources

Authors: Jeffrey Yi-Lin Forrest; Lawrence P. Shao; Ralph E. McKinney Jr.; Dale Shao

Addresses: School of Business, Slippery Rock University, Slippery Rock, PA 16057, USA ' School of Business, Slippery Rock University, Slippery Rock, PA 16057, USA ' Lewis College of Business, Marshall University, 1 John Marshall Drive, Huntington, WV 25755, USA ' Lewis College of Business, Marshall University, 1 John Marshall Drive, Huntington, WV 25755, USA

Abstract: Resource-based theory has been widely employed in the research of various marketing and management topics to facilitate explanation and prediction of competitive advantages and performance outcomes. This paper establishes a cohesive theory of resources, starting from several basic axioms, by using systems science and the systemic yoyo model so that organisations and interactions between organisations can be well modelled. Specifically, we show, among others, when a firm develops a competitive advantage, why each capability is a resource, how dynamic capabilities are derivable from capabilities, when firm's performance can be improved, and why expanding into new markets can be risky but beneficial. Because of the approach taken in this paper, results and conclusions established herein are not subject to limitations and uncertainties of empirical analyses and can be generally employed in practical applications.

Keywords: capability; competitive advantage; co-ordinately monopolised market; effect of environmental; industry factors; economy of scale; market entry; systems; technology.

DOI: 10.1504/IJBSR.2021.115989

International Journal of Business and Systems Research, 2021 Vol.15 No.4, pp.468 - 490

Received: 05 Apr 2019
Accepted: 02 Dec 2019
Published online: 06 Jul 2021 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article