Resource Complementarity, Institutional Compatibility, and Some Ensuing Methodological Issues in Testing the Resource-Based View

Abstract

We argue that resource-based view (RBV) researchers must take into account three interdependencies, (i) intrafirm resource complementarity, (ii) interfirm resource complementarity or rivalry, and (iii) compatibility or incompatibility of firm resources to broader socio-economic institutions, when attempting to empirically verify the RBV. However, these interdependencies lead to three potential causes of statistical bias, which can reduce the interpretability of such empirical examinations. First, omitted variable bias results from a researcher's inability to find and include in empirical analyses appropriate operationalizations of constructs. Second, selection bias can arise when a researcher samples only from one subset of the population, and not others. Bias in estimates can occur if a correlation between unobserved determinants of the outcome and factors affecting the selection process exist. Finally, joint dependence, where two explanatory variables are themselves mutual determinants, can lead to biased estimation.

Citation

Chi, T. and Levitas, E. (2007), "Resource Complementarity, Institutional Compatibility, and Some Ensuing Methodological Issues in Testing the Resource-Based View", Ketchen, D.J. and Bergh, D.D. (Ed.) Research Methodology in Strategy and Management (Research Methodology in Strategy and Management, Vol. 4), Emerald Group Publishing Limited, Leeds, pp. 19-35. https://doi.org/10.1016/S1479-8387(07)04002-7