Abstract
To help understand how firms develop and maintain dynamic capabilities, we examine the effects of the dynamics, management, and governance of R&D and marketing resource deployments on firm-level economic performance. In a sample of technology-based entrepreneurial firms, we find that a history of increased investments in marketing is an enduring source of competitive advantage. We also find that managers' firm-specific experience positively moderates the relationship between R&D deployment intensity and economic returns. In addition, institutional ownership boosts economic returns from marketing deployments by subjecting these deployments to increased scrutiny and by sending positive signals to the market about the firm.
Original language | English (US) |
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Pages (from-to) | 489-496 |
Number of pages | 8 |
Journal | Strategic Management Journal |
Volume | 26 |
Issue number | 5 |
DOIs | |
State | Published - May 2005 |
Keywords
- Agency theory
- Dynamic capabilities
- Firm performance
- R&D and marketing investments
- Resource-based theory
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management