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Resource-Based Advantages in an International Context{dagger}

Keith D. Brouthers

King's College London, University of London, 150 Stamford St., London SE1 9NH, Keith.brouthers{at}kcl.ac.uk

Lance Eliot Brouthers

Department of Marketing and Management, University of Texas at El Paso, El Paso, TX 79968

Steve Werner

Department of Management, C.T. Bauer College of Business, University of Houston, Houston, TX 77204-6021

How universal are resource-based advantages? In this study, the authors suggest that differences in nations' institutional environments may influence the applicability of resource-based advantages; for this reason, the effectiveness of such advantages may vary cross-nationally. They hypothesize and find that adding the moderating influence of national institutional environment to a resource-based perspective better explains strategic decisions (entry mode choice) in an international context than does a mere resource-based approach. The analysis also shows that decisions predicted by a model incorporating both perspectives yield better subsidiary performance. Thus, results suggest that, at least in an international setting, resource-based advantages appear to be context specific. Based on these results, the authors conclude that considering country-specific contextual influences on the value of resource-based advantages allows firms to make strategic decisions that improve international subsidiary performance.

Key Words: resource-based view • institutional theory • context specificity • performance • dynamic capabilities

Journal of Management, Vol. 34, No. 2, 189-217 (2008)
DOI: 10.1177/0149206307312508
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