Bringing a Resource and Capability Lens to Resource Allocation

Catherine Maritan, Gwendolyn K. Lee

Research output: Contribution to journalComment/debate

2 Citations (Scopus)

Abstract

This article highlights a perspective that has been underexplored in resource allocation research. By viewing resource allocation through a resource and capability lens, three connections are developed between resource-based theories of strategy and strategy research on resource allocation. First, the lens is applied to frame capital investments as investing in capabilities. This framing provides a theoretical path connecting the strategic purpose of investments, through value creation from resource commitments, to the creation of competitive advantage. Second, resource allocation for the purpose of capability development is related to a resource-based model of asset accumulation. Placing resource allocation decisions in the context of capability development suggests that key features of the asset accumulation process can usefully inform research on the resource allocation process. Last, corporate capital allocation is connected to resource redeployment in multibusiness firms. This connection explicates ways in which corporate headquarters can add to firm value. These connections illustrate the potential that resource-based theories have to contribute insights to resource allocation research.

Original languageEnglish (US)
Pages (from-to)2609-2619
Number of pages11
JournalJournal of Management
Volume43
Issue number8
DOIs
StatePublished - Nov 1 2017

Fingerprint

Resources and capabilities
Resource allocation
Assets
Resource-based theory
Capital allocation
Firm value
Strategy research
Capital investment
Placing
Headquarters
Resource-based
Value creation
Resource commitment
Investing
Resources
Competitive advantage

Keywords

  • resource allocation/management
  • resource-based view
  • strategic decision making
  • strategic factor markets

ASJC Scopus subject areas

  • Finance
  • Strategy and Management

Cite this

Bringing a Resource and Capability Lens to Resource Allocation. / Maritan, Catherine; Lee, Gwendolyn K.

In: Journal of Management, Vol. 43, No. 8, 01.11.2017, p. 2609-2619.

Research output: Contribution to journalComment/debate

Maritan, Catherine ; Lee, Gwendolyn K. / Bringing a Resource and Capability Lens to Resource Allocation. In: Journal of Management. 2017 ; Vol. 43, No. 8. pp. 2609-2619.
@article{871caba723d345a4b334346b5f98cf8d,
title = "Bringing a Resource and Capability Lens to Resource Allocation",
abstract = "This article highlights a perspective that has been underexplored in resource allocation research. By viewing resource allocation through a resource and capability lens, three connections are developed between resource-based theories of strategy and strategy research on resource allocation. First, the lens is applied to frame capital investments as investing in capabilities. This framing provides a theoretical path connecting the strategic purpose of investments, through value creation from resource commitments, to the creation of competitive advantage. Second, resource allocation for the purpose of capability development is related to a resource-based model of asset accumulation. Placing resource allocation decisions in the context of capability development suggests that key features of the asset accumulation process can usefully inform research on the resource allocation process. Last, corporate capital allocation is connected to resource redeployment in multibusiness firms. This connection explicates ways in which corporate headquarters can add to firm value. These connections illustrate the potential that resource-based theories have to contribute insights to resource allocation research.",
keywords = "resource allocation/management, resource-based view, strategic decision making, strategic factor markets",
author = "Catherine Maritan and Lee, {Gwendolyn K.}",
year = "2017",
month = "11",
day = "1",
doi = "10.1177/0149206317727585",
language = "English (US)",
volume = "43",
pages = "2609--2619",
journal = "Journal of Management",
issn = "0149-2063",
publisher = "SAGE Publications Inc.",
number = "8",

}

TY - JOUR

T1 - Bringing a Resource and Capability Lens to Resource Allocation

AU - Maritan, Catherine

AU - Lee, Gwendolyn K.

PY - 2017/11/1

Y1 - 2017/11/1

N2 - This article highlights a perspective that has been underexplored in resource allocation research. By viewing resource allocation through a resource and capability lens, three connections are developed between resource-based theories of strategy and strategy research on resource allocation. First, the lens is applied to frame capital investments as investing in capabilities. This framing provides a theoretical path connecting the strategic purpose of investments, through value creation from resource commitments, to the creation of competitive advantage. Second, resource allocation for the purpose of capability development is related to a resource-based model of asset accumulation. Placing resource allocation decisions in the context of capability development suggests that key features of the asset accumulation process can usefully inform research on the resource allocation process. Last, corporate capital allocation is connected to resource redeployment in multibusiness firms. This connection explicates ways in which corporate headquarters can add to firm value. These connections illustrate the potential that resource-based theories have to contribute insights to resource allocation research.

AB - This article highlights a perspective that has been underexplored in resource allocation research. By viewing resource allocation through a resource and capability lens, three connections are developed between resource-based theories of strategy and strategy research on resource allocation. First, the lens is applied to frame capital investments as investing in capabilities. This framing provides a theoretical path connecting the strategic purpose of investments, through value creation from resource commitments, to the creation of competitive advantage. Second, resource allocation for the purpose of capability development is related to a resource-based model of asset accumulation. Placing resource allocation decisions in the context of capability development suggests that key features of the asset accumulation process can usefully inform research on the resource allocation process. Last, corporate capital allocation is connected to resource redeployment in multibusiness firms. This connection explicates ways in which corporate headquarters can add to firm value. These connections illustrate the potential that resource-based theories have to contribute insights to resource allocation research.

KW - resource allocation/management

KW - resource-based view

KW - strategic decision making

KW - strategic factor markets

UR - http://www.scopus.com/inward/record.url?scp=85031784161&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85031784161&partnerID=8YFLogxK

U2 - 10.1177/0149206317727585

DO - 10.1177/0149206317727585

M3 - Comment/debate

AN - SCOPUS:85031784161

VL - 43

SP - 2609

EP - 2619

JO - Journal of Management

JF - Journal of Management

SN - 0149-2063

IS - 8

ER -