Rvb-International Business Strategy Essay

11275 Words Oct 29th, 2013 46 Pages
© Academy of Management Journal 1996, Vol. 39, No. 3. 519-543.

THE RESOURCE-BASED VIEW OF THE FIRM IN TWO ENVIRONMENTS: THE HOLLYWOOD FILM STUDIOS FROM 1936 TO 1965
DANNY MILLER Ecole des Hautes Etudes Commerciales, Montreal, and Columbia University JAMAL SHAMSIE New York University
This article continues to operationally define and test the resourcehased view of the firm in a study of the major U.S. film studios from 1936 to 1965. We found that property-hased resources in the form of exclusive long-term contracts with stars and theaters helped financial performance in the stable, predictable environment of 1936-50. In contrast, knowledge-based resources in the form of production and coordinative talent and budgets boosted financial
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Indeed, in this article we attempt to move from a resource-based "view" toward a "theory" by progressing from description to testable prediction. A view is a product

We would like to acknowledge the helpful suggestions of Ming-Jer Chen, Steve Zyglidopoulos, and two anonymous reviewers. 519

520

Academy of Management Journal

June

of evocative description, but theory demands the formulation of falsifiable propositions.
THE NATURE OF RESOURCES

According to Wernerfelt, resources can include "anything that might he thought of as a strength or weakness of a given firm" and so "could he defined as those [tangible and intangible assets] which are tied semipermanently to the firm" (1984: 172). Resources are said to confer enduring competitive advantages to a firm to the extent that they are rare or hard to imitate, have no direct suhstitutes, and enable companies to pursue opportunities or avoid threats (Barney, 1991). The last attribute is the most obvious: resources must have some value—some capacity to generate profits or prevent losses. But if all other firms have them, resources will be unable to contribute to superior returns: their general availability will neutralize any special advantage. And for the same reason, readily availahle suhstitutes for a resource will also nullify its value. Thus, resources must be difficult to create, buy, substitute, or imitate. This last point is central to the

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