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This paper seeks to contribute to the RBV by focusing on a central construct, the “Keystone step”, within the firms' capability management field. It aims at providing a conceptual framework for top managers to understand the main related issues and steps, and to position their own organizational perspective.

The study explores the associated conceptual and empirical literature, borrowing from a strategic and a cognitive perspective, and defines and characterizes the central construct.

The author identifies a three‐step managerial process to handle capabilities: the Analytical step, the Action step, and the Keystone step. After briefly reviewing the resource‐based view, he suggests definitions and critical dimensions to design a conceptual frame articulated around the Keystone step, within which top managers can position and build their own approach. The critical founding rationale of capability management, rooted in underlying assumptions and beliefs, often implicit, hidden or neglected, increases the odds of blind managerial conceptual foundations. The author's claim focuses on the criticality of the Keystone step and the necessity of introspection to achieve sound strategic and capabilities‐related decisions.

Managers must recognize the importance of the Keystone step, devote resources to understand their own organizational “RBV position”, and acknowledge the mental flexibility to do so. The RBV should shift from an epistemology of “possession” to an epistemology of “embodiment”.

The paper offers an original vision of the capabilities management within the RBV, details out the issues of the current conceptual foundation of that managerial activity, and offers propositions for the Keystone step construct.

There is a dearth of research that investigates the impact of national culture on budgeting and management indexes in the public sector across developing countries. Limited studies in accounting and management have explained the role of national culture in shaping organisational and individual values. It is posited that national cultural variables impact budget transparency and performance management. This study contributes to the literature by examining these relations in 16 developing countries.

Adopting an unbalanced timing framework, the current paper seeks to fulfill this gap and applies four cultural dimensions from the GLOBE study (House et al., 2004) as explanatory variables to investigate whether national culture is associated with budget transparency and performance management or not, particularly in the context of developing countries. The paper uses budget transparency as the first dependent variable, based on the OECD database from Qi and Mensah (2011), along with performance management as the second dependent variable, from the BTI Project (2016), according to the leadership's political performance management.

Generally, the empirical findings reveal a minimal relation among GLOBE cultural variables with budget transparency and performance management. Particularly, the empirical findings indicate that only performance orientation has a significant relation with budget transparency and performance management.

The findings of this paper suggest that any plan to improve a nation's budget transparency should consider the links between budgeting, performance management and the culture of those that run them.

The formal adoption of new methods by performance management may not be enough without accompanying efforts to transform performance orientation as an index of national culture.

This case discusses Qihoo 360's free business model, how it used this free model to overpower competitors, and how the model evolved over time. Qihoo 360 is a company that took just six years to become a company listed on the New York Stock Exchange (with a market value of over US$ 2 billion). At Qihoo 360's Initial Public Offering (IPO) at the New York Stock Exchange (NYSE), Qihoo's founder Zhou Hongyi reflected on how Qihoo's free business model had brought its current success and speculates on its future challenges.

The authors used both secondary data and field interviews when preparing this case. After reading through various company reports, competitor information, and financial filings, the authors interviewed five top manager team (TMT) members of Qihoo 360, three TMT members of its competitors, and two partners of venture capital investors who have invested in these companies in Beijing or Shenzhen during the last three years. The authors collected 347 media reports related to these companies in Chinese covering seven years of history. This long span of data collection improves the interpretation of the company and helps construct the storyline of the case.

This case is suitable for an MBA course or an advanced undergraduate course in strategic management or a technology-oriented entrepreneurship course, focussing on the topic of the free business model, business model innovation, disruptive innovation, and evolution of the business model during the entrepreneurial process.