SlideShare una empresa de Scribd logo
1 de 16
Descargar para leer sin conexión
International Journal of Operations & Production Management
Emerald Article: Use of resource-based view in industrial cluster
strategic analysis
Eduardo de Oliveira Wilk, Jaime Evaldo Fensterseifer



Article information:
To cite this document: Eduardo de Oliveira Wilk, Jaime Evaldo Fensterseifer, (2003),"Use of resource-based view in industrial
cluster strategic analysis", International Journal of Operations & Production Management, Vol. 23 Iss: 9 pp. 995 - 1009
Permanent link to this document:
http://dx.doi.org/10.1108/01443570310491747
Downloaded on: 07-12-2012
References: This document contains references to 37 other documents
Citations: This document has been cited by 12 other documents
To copy this document: permissions@emeraldinsight.com
This document has been downloaded 4741 times since 2005. *




Access to this document was granted through an Emerald subscription provided by UNIVERSITY OF THE ARTS LONDON

For Authors:
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service.
Information about how to choose which publication to write for and submission guidelines are available for all. Please visit
www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in
business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as
well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is
a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive
preservation.
                                                                        *Related content and download information correct at time of download.
The Emerald Research Register for this journal is available at   The current issue and full text archive of this journal is available at
  http://www.emeraldinsight.com/researchregister                   http://www.emeraldinsight.com/0144-3577.htm




                                                                                                            Industrial cluster
 Use of resource-based view in                                                                                       strategic
  industrial cluster strategic                                                                                       analysis

            analysis                                                                                                                    995
  Eduardo de Oliveira Wilk and Jaime Evaldo Fensterseifer
School of Administration (PPGA/EA) and Agribusiness Research Center
 (CEPAN), Federal University of Rio Grande do Sul (UFRGS), Brazil
Keywords Resources, Cluster analysis, Strategic evaluation, Industrial performance,
Winemaking, Brazil
Abstract The resource-based view of the firm has recently emerged as a new paradigm in
strategic analysis. According to this view, firms are heterogeneous collections of resources that lead
them to distinct market performance. This paper uses this approach not to analyse an individual
firm but a cluster of firms, whose competitiveness depends not only on their individual resources
and capabilities but also on those shared by the cluster as a whole. The analysis was developed for a
wine cluster located in southern Brazil. The main objective was the identification of the resources
and capabilities shared by the cluster in its effort to formulate sustainable competitive strategies.
The research method employed combined the techniques of cognitive mapping analysis with the
theoretical basis of the resource-based view approach. The results of the study produced a
significant improvement in managers’ and strategists’ perceptions about the competitive potential
of the cluster.

Introduction
One of the central purposes of strategy formulation and implementation is the
development and sustaining of competitive advantages. The theories in this
field are under constant scrutiny and frameworks and analytical models that
search to explain the nature of competition among firms abound in the strategy
literature. In essence, there is a need for an understanding of why some firms
perform better than others while the competitive environment remains the
same for all firms. Amongst the most relevant contributions in this sense are
Porter’s (1980, 1985) five competitive forces model, with its roots in industrial
organisation. Despite the strong contribution of this analytic approach, more
recent research is paying greater attention to the firms’ internal environment,
looking for factors like knowledge and other intangible strategic assets to
explain differences in performance. This type of approach is embodied in the
so-called “resource-based view (RBV) of the firm”.
    This paper follows this stream of research. It presents the results obtained in
a process of strategic analysis carried out for a wine cluster in southern Brazil.
The main objectives were to identify the strategic resources and capabilities of
                                                                                                            International Journal of Operations &
the cluster and to develop an understanding of their interactions and the                                                Production Management
                                                                                                                               Vol. 23 No. 9, 2003
conditioning factors that can lead to sustainable competitive advantages.                                                             pp. 995-1009
    The research method employed combined the techniques of cognitive                                                         q MCB UP Limited
                                                                                                                                        0144-3577
mapping analysis with the theoretical basis of the RBV approach. The results                                     DOI 10.1108/01443570310491747
IJOPM   of the study produced a significant improvement in managers’ and strategists’
23,9    perceptions about the cluster’s strategic resources and capabilities and hence of
        its competitive potential.
           Although individual firms have been the preferred unit of analysis in
        strategy literature, today, in a world of alliances and coalitions, competition
        increasingly occurs between supply chains, networks of firms, or clusters. A
996     cluster, whose role in competition has only recently been widely recognised,
        can be defined as a geographical concentration of inter-related firms,
        specialised suppliers, knowledge producers and research centres, brokers,
        consultants and consumers, connected in a value producing chain (Porter,
        1990).
           In this study, the same principles and constructs of the resource-based
        approach applicable to the individual firm were applied to the cluster and its
        collective resources and capabilities.
           The study is structured as follows. The next section presents the main
        theoretical concepts of the resource-based approach, exploring issues like
        strategic attributes and relationship between resources. The following section
        discusses the methodological steps taken in this research study, where the
        elaboration of cognitive maps plays a central role. Finally, the wine cluster
        analysis and a discussion of the main results are presented.

        The RBV of the firm
        Positioning a firm for competitive advantage through the correct
        understanding of its strengths and weaknesses has been one of the basic
        prescriptions in the strategy field since the developments of Ansoff (1968) and
        Andrews (1971). This prescription, however, remained for a long time at a
        conceptual level, lacking tools for a deeper analysis of firms’ resources, which
        constitute the ultimate basis for firms “strengths and weaknesses”.
           Today, the RBV of the firm has rediscovered its roots in the studies of
        Selznick (1957) and Penrose (1959), and is establishing itself as a promising and
        insightful field of research. This approach “views” firms as different amalgams
        of productive and strategic resources and capabilities that lead them to
        different performance potentials. As Barney (1991) noted, all firms are different
        because they do not have the same history, the same experiences, the same
        organisational culture or the same assets and abilities.
           In its modern form, the RBV approach has been object of the works of
        Wernerfelt (1984), Rumelt (1984, 1991), Dierickx and Cool (1989), Barney (1986,
        1991, 2001), Teece (1986), Grant (1991), Mahoney and Pandian (1992), Amit and
        Shoemaker (1993), Peteraf (1993), Foss (1997), Teece et al. (1997), Castanias and
        Helfat (2001), Lockett and Thompson (2001) and Mahoney (2001), among
        others.
           Some important research themes concerning the RBV approach includes the
        classification of strategic resources (Barney, 1991; Grant, 1991; Zahra and Das,
1993), the identification of strategic resources and their interactions (Amit and Industrial cluster
Shoemaker, 1993; Black and Boal, 1994), the valuation of strategic resources              strategic
(Collis, 1994), and the resource acquisition and formation processes (Barney,             analysis
1986; Bernardo and Chowdhry, 2002). This paper deals with the second theme
and the approach taken here is to explore the conditions that make a resource
become strategic.
                                                                                             997

The strategic nature of a resource
Resources can be classified in three main categories (Penrose, 1959; Barney,
1991; Grant, 1991):
  (1) physical resources, like plants and equipment, land, natural resources
      and raw materials;
  (2) human resources, including the productive, technical and managerial
      workers; and
  (3) organisational resources, formed by the routines that coordinate the
      human and physical resources in a productive way.
Resources can also be “tangible”, which can be observed and evaluated with
clarity, like physical resources, and “intangible”, which cannot be directly
observed or quantified, like the reputation of a company or a product,
organisational culture, management and coordination abilities,
non-documented technologies and knowledge, among others.
   Resources and capabilities can be defined as “strategic” when they are
valuable, rare, inimitable, non-substitutable, or still, ambiguous to
competitors and can be used as basis for the achievement of competitive
advantages. Additionally, a fundamental distinction between resources and
capabilities is that resources consist of a bundle of potential services
whereas capabilities can be defined as the services, activities or functions
itself, played by these resources (Penrose, 1959; Mahoney and Pandian,
1992).
   The search for special attributes that characterise the strategic value of a
resource leads us to an extensive list of terms. Although researchers have
explored these attributes under different names, a deeper analysis of the main
studies of Wernerfelt (1984), Rumelt (1984), Teece (1986), Dierickx and Cool
(1989), Barney (1991), Grant (1991), Amit and Shoemaker (1993) and Black and
Boal (1994) shows a strong similarity of ideas.
   Peteraf (1993) developed a framework that synthesised most of these ideas in
four necessary conditions that must exist for a resource to be considered
strategic, referred to as the “cornerstones of competitive advantage”:
heterogeneity, imperfect mobility, ex ante limits to competition and ex post
limits to competition. Each one is next briefly described, as they constitute
important elements of the conceptual basis of our study.
IJOPM   Heterogeneity
23,9    According to Peteraf (1993), heterogeneity in an industry can involve situations
        in which the amount of strategic resources is limited and scarce in relation to its
        demand. Under this condition, inferior or inefficient resources are used in
        production in order to supply the residual demand. In this context, a possibility
        of superior profits (economic rent) emerges for the most efficient firms. This
998     argument can be more clearly understood if we assume that firms with superior
        resources have lower average production costs than the other firms. However,
        being limited by the scarcity of the resources they cannot expand production
        quickly even if prices are very high. The high prices, however, can induce
        other, less efficient, firms to enter the market. When equilibrium occurs
        between demand and supply, and prices reach its own equilibrium, these
        companies will have their profits lowered to the equilibrium point and the
        lower cost firms will obtain higher profits by using their superior resources.
           Thus, the more efficient firms are able to sustain their competitive
        advantages as long as their resources cannot be imitated or expanded to the
        demand level. The efficiency differential (heterogeneity) in relation to other
        firms’ resources and the existence of scarcity in relation to demand are essential
        conditions to improve profit performance through the use of a strategic
        (superior) resource.

        Ex ante limits to competition
        The existence of ex ante limits to competition, as defined by Peteraf (1993),
        implies that prior to the establishment of a superior position in resources there
        must exist a limited competition for that position.
           Peteraf (1993) states that a position in resources can only be a source of
        superior performance if the firm has an opportunity to acquire them in the
        absence of competition. Thus, the value of the resources cannot be known to all
        competitors prior to their acquisition and use, for otherwise it would generate a
        competition for these resources and consequently profits would be eroded.
        Concerning this point, unless a difference exists between the ex post value of
        the necessary resources and their ex ante acquisition cost, the generated above
        normal profits (economic rent) can be null (Rumelt, cited in Peteraf, 1993).

        Ex post limits to competition
        The need of ex post limits to competition implies that after a firm establishes a
        superior competitive position through heterogeneous resources in relation to its
        competitors, there must exist factors that sustain the durability of this
        heterogeneity condition in a way that preserves the attained superior position.
           Peteraf (1993) considers as main conditions that limit ex post competition the
        presence of “imperfect imitability” and “imperfect substitutability” of a
        resource. The performance of competitors through imitation or substitution,
        increasing the supply of a resource initially scarce, can dissipate the profits in a
        competitive environment. The capacity to protect a resource against imitation
or substitution depends on a series of factors. Among these are issues described Industrial cluster
by Rumelt (1984) and Dierickx and Cool (1989) as “isolation mechanisms”                   strategic
(Peteraf, 1993). The most important isolation mechanisms are the                          analysis
indetermination or causal ambiguity of the knowledge involved in the
acquisition of a resource, the degree of asset complementarities and the
existence of “path-dependent” factors.
                                                                                              999
   “ Indetermination” or “causal ambiguity” exists when the competitors are
unable to identify which are the valuable resources or how to recreate or define
them (Reed and DeFillippi, 1990). For example, in the case of non-codified
knowledge, causal ambiguity renders difficult to identify, from a competitive
position standpoint, which resources sustain that position. Thus, the
idiosyncrasies of the learning process, rather than representing a problem
are, in some cases, a desirable condition to sustain a competitive advantage.
   A “path-dependence” condition, in turn, means that a resource or asset was
developed and accumulated in a process through time, generally in a learning
sequence involving trial and error.



Imperfect mobility
The “imperfect mobility” condition of a resource implies that, although this
resource can be traded, it is much more valuable in the firm in which it is
currently being used than it would be in another firm. The resources are
imperfectly mobile when they are somewhat specialised or exclusively
developed or adapted for the needs of the company that possesses them.
   Concerning this aspect, Teece (1986) argues that certain groups of resources
only produce value when used jointly, referring to them as “co-specialised
assets”. Another source of “imperfect resource mobility” is present when the
associated transaction or mobility costs for this resource are excessively high
in relation to its value (Rumelt, cited in Peteraf, 1993).
   Certain resources, however, are configured or related in such a way that it
becomes difficult for both sellers and buyers to analyse them and determine
their costs or individual values. These “information asymmetries” prevent a
likely buyer to have access to a proper evaluation of these resources, hindering
therefore their negotiation or change of hands (Barney, 1991).
   The consideration of the conditioning factors described above is hence an
essential step in the evaluation of the resources and capabilities of a firm and in
signalling the path for the identification of the ones that have strategic value.
And, since the strategic value of a firm’s resources resides not only in its
individual attributes but also in the total effect of its complex and systemic
interaction (Black and Boal, 1994), a systemic understanding of these attributes
and interactions provides the foundations for a firm, or a cluster, to identify its
sources of advantages and possible scope of competition.
IJOPM   Research methodology
23,9    Strategy formulation in the managerial field is characterised by a strong
        dependence on the context in which a firm is embedded, which renders direct
        observation of resources and capabilities very difficult. But, on the other hand,
        it is precisely in this difficulty of observation and codification that lies their
        strategic value, since competitors cannot easily emulate them. In other words,
1000    the same conditions that create a problem for competitors, as well as for
        empirical researchers, are precisely the sources of strategic value of these
        resources and capabilities.
            Concerning this problem, Godfrey and Hill (1995) noted that the evidence of
        unobservable factors could be checked through the observation of their effects,
        independently of the possibility of formal and direct observation of these
        factors. According to the authors, qualitative methodologies and case studies
        are of extreme value in the investigation of these unobservable factors and it
        was the methodology chosen for this study.
            In order to identify the resources and capabilities of the wine cluster we used
        in-depth interviews with experts from the wine sector, followed by the
        elaboration and analysis of cognitive maps, which constitute graphic
        representations of the collective knowledge of the interviewed experts.
        Cognitive maps can be defined as “graphs” elaborated by a person or a group of
        persons on the subjective aspects of a problem, which are rendered explicit by
        the use of induction (Howard, 1989; Calori et al., 1994). These maps contribute
        to the understanding of the images and the words used for the mental
        representation of a reasoning process and are thus useful in the process of
        analysing and modelling complex problems characterised by subjective ideas
        about the reality.
            The methodological steps of the research are depicted in Figure 1 and
        described below.
            The first step consisted of forming a group of experts on the wine industry.
        Eight experts were chosen among managers, agronomists, oenologists and
        economists, as shown in Table I. They were selected based on their
        involvement with different aspects of the wine cluster. This group was one of
        the main sources of information throughout the study.
            The data collection was accomplished through in-depth semi-structured
        interviews (step 2) with the group of experts. The interviews were recorded
        with the interviewees’ acquiescence, had an average duration of 90 minutes and
        were transcribed in its entirety immediately after its conclusion. The main
        objective of this step was to characterise the set of resources of the cluster as a
        starting point for the identification of its strategic resources and capabilities. In
        these interviews the strategic value of the resources were appraised based on
        Peteraf’s (1993) four conditions for a resource to be strategic.
            The third step consisted of the content analysis. This was carried out in
        three different stages, adapted from Moraes (1993):
Industrial cluster
                                                                                                 strategic
                                                                                                 analysis

                                                                                                     1001




                                                                                                   Figure 1.
                                                                                          Main methodological
                                                                                                        steps



Expert             Function                            Experience in industry (years)

1                  Oenologist                                       18
2                  Marketing director of a winery                   20
3                  Researcher from Embrapaa                         10
4                  Researcher from Embrapaa                         15
5                  Economist                                        20
6                  Viticulturist                                    35
7                  Owner of small winery                            15                               Table I.
8                  Director of large winery                         40                   Group of experts from
Note: a Federal Agricultural Research Centre                                                       wine sector


  (1) Preparation of the information. Working with the transcribed
      interviews, this first stage consisted of selecting and highlighting the
      important aspects pertinent to the study, like history, learning trajectory
      and industry infrastructure.
  (2) Transformation of the general content into concepts. This stage was
      carried out in two different moments: separation of text into paragraphs,
      in accordance to the thematic content; and successive synthesis of each
      paragraph in order to identify concepts that represent central ideas,
      knowledge fragments and important events, conserving the original
      meaning as well as the interviewees’ own words.
IJOPM                      (3) Classification of the identified concepts into categories. Consisted of
23,9                           grouping the concepts of each interview by thematic similarity and
                               eliminating duplicate ones.
                         Having concluded the content analysis, the next step (step 4) consisted of the
                         elaboration of the basic cognitive maps. These basic maps will evolve, in the
1002                     sequence of steps, to intermediary maps and finally to a global map. Since
                         cognitive mapping is the central technique used in our study, further details are
                         next provided.
                            As shown in Figure 2, there are three basic types of concepts in the general
                         structure of a cognitive map:
                            (1) tail concepts, which indicate primary concepts that can represent single
                                ideas, actions, or initial events;
                            (2) branch concepts, which represent key ideas, actions or events that
                                synthesize the reasoning of the experts and identify convergences
                                between primary concepts and their final effects; and
                            (3) head concepts, which indicate the final effects.
                         Thus, in step 4, a basic cognitive map was elaborated for each processed
                         interview. This was accomplished with the aid of a mapping software, having
                         as input the concepts generated in the content analysis of step 3. At the end of
                         this section we provide information on the software used.
                            Next, in step 5, each basic map and its links were reviewed with each
                         interviewee and the relationships between concepts were analysed in terms of
                         two aspects: domain and centrality.




Figure 2.
General structure of a
cognitive map
The domain analysis examines each concept and calculates how many Industrial cluster
concepts are “immediately” linked to it. It provides a first level measure of the  strategic
density of a concept and serves mainly as a support to selective examination      analysis
when working with large and complex maps.
   The centrality analysis examines each concept and calculates a “centrality
score” based on how many concepts are directly or indirectly linked to it.
Through centrality analysis it is possible to identify which concepts have a
                                                                                     1003
high density of links and thus a high weight on the entire map; these are
considered to be “central concepts”. This analysis may provide some insight
into discovering which concepts are key issues and may need further
examination in order to identify evidences of their strategic nature.
   In step 6, the basic maps generated were compared and similarities between
them were identified. Then, in step 7, maps were combined and merged into
new ones, called intermediary maps.
   In step 8 the intermediary maps were validated in a series of meetings with
the entire group of experts. In these meetings, mediated by a negotiation
process within the group, the intermediary maps were reviewed one by one and
relationships between them were identified.
   The negotiation and established relations between maps led to the
emergence of a shared view among experts, represented by a global cognitive
map (step 9). At this step the group of experts concentrated on the content of
the generated global map in order to identify new relationships among the
individually generated concepts. It is the global view at this step of the method
that allows for the possibility of a synthesis and of a new view of the data.
   The global map with all relationships between concepts validated is the
input to step 10, which consisted of identifying the strategic resources and
capabilities of the cluster of firms. This was accomplished by the means of a
centrality score for each concept, this time calculated for the global map. Since
the map is a representation of history, knowledge and the inter-related
resources and capabilities of the cluster, each concept with a high centrality
score was judged by the group of experts on whether or not it represents a
strategic resource or capability.


Cognitive mapping with the aid of a mapping software
The identification of a collection of strategic resources and capabilities of a firm
or a cluster of firms requires analysis of a complex web of information and
cause-effect relationships between concepts. Mapping software can be very
useful aids in this process. In our research we made use of the software COPE,
developed at the University of Strathclyde, Scotland. It belongs to the category
of tools called IGDSS (interactive group decision support systems), which make
use of graphic resources that allow members of a group to acquire a shared
global perspective on a complex problem.
IJOPM   The case of the southern Brazil wine cluster
23,9    According to the Office International de la Vigne et du Vin (OIV), wine
        production activities are present in all five continents in more than 40 countries
        (Tonietto and Carbonneau, 1999).
           The world expansion of viniculture is intimately connected to the migratory
        flows and to the process of fixation of the populations. Thus, in the early stages
1004    of development the choice of the ideal ecosystems did not constitute one of the
        main concerns. Historical circumstances and economic needs demanded
        sometimes, by lack of totally appropriate areas, art and ingenuity on the part of
        the viticulturists in order to surpass the inadequacies of the physical
        environment (Aguiar, 1999a).
           Similarly to other industries, the wine business followed the progressive
        globalisation of activities and internationalisation of markets. The product
        “wine”, however, has some important peculiarities that must be mentioned. In
        fact, as Aguiar (1999a, p. 25) points out, “wine is not a common merchandise: it
        cannot be produced anywhere and must obey rules that are far more complex
        than the simple minimisation of production costs”. According to the author, the
        location of the vineyards, like any other unit of agro-industrial production, is
        subject to the rules of competitive as well as comparative advantages; each area
        has its own and they are more important and decisive for its image and position
        in the market than production costs alone. In addition, the final product of the
        wine industry is not a simple output of natural factors, but of a combination of
        culture, talent and multiple and complex expertise. No producing area can be
        simply classified as good or bad land, but as different in its potentialities. This
        way, the exploration of each differentiating factor becomes necessary in the
        formulation of cluster strategies.

        Structural context
        The evolution of the wine and grape business in southern Brazil is an
        interesting example because, according to Aguiar (1999b), it constitutes
        simultaneously a repository of the expertise brought by immigrants from their
        original countries and the expression of adaptation capabilities to adverse
        topographical conditions and climatic matters. Additionally, there is presently
        an increasing awareness of the need for a qualitative upgrade towards a
        strategic positioning that better exploits new market opportunities.
           The Brazilian wine history dates back to the Portuguese colonisation in the
        sixteenth century, even though its current development is due primarily to the
        arrival of Italian immigrants, beginning in 1875. Brazil now occupies the 17th
        position in the world ranking of wine producers and the wine and grape
        business is a consolidated activity in 12 producing areas in the states of
                                                  ´ ˜
        Rio Grande do Sul, Santa Catarina, Parana, Sao Paulo, Minas Gerais and, of late
                            ˜
        prominence, the Sao Francisco Valley, in the northeast (Falcade and Mandelli,
        1999).
The national production of wine in recent years averages approximately 300 Industrial cluster
million litres per year. The Brazilian wine and grape business is conducted, for       strategic
its most part, in small family-owned properties, generally involving a great           analysis
variety of grapes. About 65 per cent of the grape production is destined for
wine, juice, distilled and other derived products, while 35 per cent is destined
for consumption in natura. Southern Brazil’s wineries, mainly concentrated in
the state of Rio Grande do Sul, account for 93 per cent of the national
                                                                                          1005
production. The cluster object of this study is located in this state, averaging
about 120km from the capital city of Porto Alegre, and comprises about 400
wineries and family canteens.
   One of Brazil’s main competitors is Argentina, with a production of 2.17
million litres/year. Being the main producer as well as the main consumer
market in the Mercosur area (a custom union formed by Argentina, Brazil,
Paraguay and Uruguay), this country stands out at the world level, being the
fourth largest producer and having the fourth highest per capita consumption
(40 litres per person/year), according to data from EMBRAPA (Brazilian
Agricultural Research Company). Compared to other countries, Brazilian wine
consumption is extremely low, limited to about two litres per person/year,
while in France and Italy it is around 70 litres per person/year. Thus, the
Brazilian wine market, rather than being considered unattractive, should be
looked at for its great expansion potential.
   The Brazilian wine industry has been systematically searching for ways of
developing its potentialities to attain a better market position for its wines. The
present study aims at contributing towards this end and constitutes an
important first step in that direction, being useful for strategic decision making
for the cluster as a whole as well as for individual firms.

Results and discussion
The global cognitive map comprises 170 concepts. As a basis for discussion of
the results, Figure 3 presents a condensed view of the map, considering only
the concepts with higher centrality scores and their neighbouring links. For
identification purposes, each concept received a number, assigned by COPE as
it was registered in the cognitive map.
   Analysing the map, we observe as starting points some initial events that
influenced the directions of the development trajectory adopted by the industry
(tail concepts 7 and 29). These events lead to abilities in mountain agriculture
(concept 11) and grape varieties adaptation (concept 26), which reveal a great
specialisation and path dependency; this is in turn related to the attributes of
long learning curve and thus high training costs demanded in technical schools
(concepts 145 and 22). Also, certain non-codified knowledge mentioned by the
experts (concepts 46 and 38) constitutes barriers to competition. Other
capabilities acquired by successive studies and experiments were the
exploration of topographical variations and climatic conditions (concepts 12,
IJOPM
23,9


1006




Figure 3.
Partial view of
cognitive map



                  24 and 33) that related with mountain agriculture (concept 11), leads to multiple
                  and unique wine types (concept 111). In turn, these multiple wine types
                  associated with the concept of mountain agriculture (concept 11) and the good
                  road infrastructure (concept 53) enables tourism exploration (concept 129),
                  which is one of the strategic advantages of the analysed cluster.
                     From the exploration of each part of the map, the group of experts was able
                  to identify many complex connections and paths between concepts, as well as
                  direct and indirect effects that unveil attributes related to their strategic nature.
                     The strategic resources and capabilities identified in this process are listed
                  in Table II, which also shows the attributes that sustain them as sources of
                  competitive advantage.
Strategic resources and capabilities           Conditions that sustain competitive advantage
                                                                                               Industrial cluster
                                                                                                        strategic
Expertise in exploitation of multiple          Path dependence, topographical knowledge                 analysis
  topographies with vineyards                    with long learning curve, non-codified
                                                 expertise
Tourist attractiveness of mountainous          Immobility, inimitability
   topography, exploitation of “mountain wine”                                                                 1007
   concept
Grape varieties adaptation capabilities        Path dependence, long term investments in
                                                 physical and personnel research structure
Increasing technology incorporation, selective Path dependence, long term investments in
   technification of production without losing    technical schools and research institutes
   human “touch” in wine making
Small family-owned wineries with their own     Path dependence, long term investments in
   “family oenologists”                          technical schools and research institutes,
                                                 imperfect mobility
Potential for achieving “controlled origin”,   Complexity, specialisation, adaptation,
   wine authenticity and uniqueness              inimitability, immobility
Collective efficiency, 400 wineries             Complexity, co-specialisation, path
                                                 dependence, information asymmetries,
                                                 imperfect mobility                                           Table II.
Long term contracts between wineries and       Co-specialization                                Strategic resources and
   grape-growers                                                                                  capabilities and their
Distinct climatic characteristics              Specificity, inimitability                                  sustainability


An important result from the analysis is that the strategic resources and
capabilities of the southern Brazil wine cluster have their own exclusive and
idiosyncratic characteristics that should be valued. Associated with the
tourism potential, the proximity of the capital city of Porto Alegre and the good
road infrastructure are at the origin of unique conditions for sustained
competitiveness.
   Finally, it is necessary to note that these results represent the view of eight
experts and could possibly be enriched by a higher number of participants.
However, since the process of reaching consensus within a group is very time
consuming, this possible enrichment could be very costly.

Conclusion
Every company can be seen as a unique collection of resources and capabilities,
whose form of combination in productive use is dependent upon management’s
perceptions. Each one acts in the market limited by these perceptions and,
sometimes, does not explore its full potentialities. Enlarging these perceptions
is a major challenge, both for the companies and for the strategists that are
responsible for the formulation of industrial and regional development policies.
   This study was conducted having as its central purpose the identification of
the strategic resources and capabilities of a cluster and their sustainability,
combining the resource-based perspective with cognitive mapping techniques
IJOPM   as a basis for strategy formulation. Although RBV constructs are still in
23,9    consolidation, Peteraf’s (1993) framework has proven to be very useful and
        insightful for pursued objective.
           The approach used here also contributed to improving the understanding of
        the linkages between firm-level resources, as highlighted by the RBV approach,
        and the collective, systemic, and sector-wide resources of the industrial
1008    organisation tradition. Since firms are influenced by both types of resources,
        industrial clusters’ as well as firms’ strategies must be formulated not only
        from the point of view of individual resources and capabilities, but also taking
        into account the collective and shared resources and capabilities of the whole
        cluster. How to manage and co-ordinate this process in an integrated way
        remains a challenge for practitioners and constitutes an important area for
        empirical research.
           It also became clear in this study that history matters and the cumulative
        development and upgrading of resources and capabilities can fundamentally
        shape the future strategic options of a cluster.


        References
                                                   ¸˜                  ´
        Aguiar, F.B. (1999a), “A internacionalizacao do mercado vinıcola”, Annals of the IX Congresso
               Brasileiro de Viticultura e Enologia, pp. 25-30.
        Aguiar, F.B. (1999b), “Introductory note”, in Falcade, I. and Mandelli, F. (Eds), Vale dos Vinhedos,
                           ¸˜         ´           ˜
               Caracterizacao Geografica da Regiao, EDUCS, Caxias do Sul.
        Amit, R. and Shoemaker, P.J. (1993), “Strategic assets and organisational rent”, Strategic
               Management Journal, Vol. 14 No. 1, pp. 33-46.
        Andrews, K.R. (1971), The Concept of Corporate Strategy, Irwin, Homewood, IL.
        Ansoff, H.I. (1968), Corporate Strategy, McGraw-Hill, New York, NY.
        Barney, J.B. (1986), “Strategic factor markets: expectations, luck and business strategy”,
               Management Science, Vol. 42 No. 9, pp. 1231-41.
        Barney, J.B. (1991), “Firm resources and sustained competitive advantage”, Journal of
               Management, Vol. 17 No. 1, pp. 99-120.
        Barney, J.B. (2001), “Resource-based theories of competitive advantage: a ten-year retrospective
               on the resource-based view”, Journal of Management, Vol. 27 No. 6, pp. 643-50.
        Bernardo, A. and Chowdhry, B. (2002), “Resources, real options and corporate strategy”, Journal
               of Financial Economics, Vol. 63 No. 2, pp. 211-34.
        Black, J.A. and Boal, K.B. (1994), “Strategic resources: traits, configurations and paths to
               sustainable competitive advantage”, Strategic Management Journal, Vol. 15, Summer,
               pp. 131-48.
        Calori, R., Johnson, G. and Sarnin, P. (1994), “CEO’S cognitive maps and the scope of the
               organization”, Strategic Management Journal, Vol. 15, pp. 437-57.
        Castanias, R. and Helfat, C. (2001), “The managerial rents model: theory and empirical analysis”,
               Journal of Management, Vol. 6, pp. 661-78.
        Collis, D.J. (1994), “Research note: how valuable are organisational capabilities?”, Strategic
               Management Journal, Vol. 15, Winter, pp. 143-52.
Dierickx, I. and Cool, K. (1989), “Asset stock accumulation and sustainability of competitive       Industrial cluster
      advantage”, Management Science, Vol. 35 No. 12, pp. pp1504-14.
                                                                         ¸˜       ´           ˜
Falcade, I. and Mandelli, F. (Eds) (1999), Vale dos Vinhedos, Caracterizacao Geografica da Regiao,
                                                                                                             strategic
      EDUCS, Caxias do Sul.                                                                                  analysis
Foss, N. (1997), Resources and Strategy: A Reader, Oxford University Press, Oxford.
Godfrey, P.C. and Hill, C. (1995), “The problem of unobservables in strategic management
      research”, Strategic Management Journal, Vol. 16, pp. 519-33.                                            1009
Grant, R.M. (1991), “The resource-based theory of competitive advantage: implications for
      strategy formulation”, California Management Review, Vol. 33 No. 3, pp. 114-35.
Howard, R. (1989), “Knowledge maps”, Management Science, Vol. 35 No. 8, pp. 903-22.
Lockett, A. and Thompson, S. (2001), “The resource-based view and economics”, Journal of
      Management, Vol. 27 No. 6, pp. 723-54.
Mahoney, J. (2001), “A resource-based theory of sustainable rents”, Journal of Management,
      Vol. 27 No. 6, pp. 651-60.
Mahoney, J. and Pandian, R. (1992), “The resource-based view within the conversation of
      strategic management”, Strategic Management Journal, Vol. 13 No. 5, pp. 363-80.
                       ´              ´
Moraes, R. (1993), Analise de Conteudo, PUCRS, Porto Alegre.
Penrose, E.T. (1959), The Theory of the Growth of the Firm, Wiley, New York, NY.
Peteraf, M.A. (1993), “The cornerstones of competitive advantage: a resource based view”,
      Strategic Management Journal, Vol. 14 No. 3, pp. 179-91.
Porter, M.E. (1980), Competitive Strategy: Techniques for Analyzing Industries and Competitors,
      The Free Press, New York, NY.
Porter, M.E. (1985), Competitive Advantage, The Free Press, New York, NY.
Porter, M.E. (1990), Competitive Advantage of Nations, The Free Press, New York, NY.
Reed, R. and DeFillippi, R.J. (1990), “Causal ambiguity, barriers to imitation and sustainable
      competitive advantage”, Academy of Management Review, Vol. 15 No. 1, pp. 88-102.
Rumelt, R. (1991), “How much does industry matter?”, Strategic Management Journal, Vol. 12,
      pp. 167-85.
Rumelt, R.P. (1984), “Toward a strategic theory of the firm”, in Lamb, R. (Ed.), Competitive
      Strategic Management, Prentice-Hall, Englewood Cliffs, NJ, pp. 556-70.
Selznick, P. (1957), Leadership in Administration: A Sociological Perspective, Harper & Row,
      New York, NY.
Teece, D.J. (1986), “Firm boundaries, technological innnovation and strategic management”, in
      Thomas, L.G. III (Ed.), The Economics of Strategic Planning, Lexington Books, Lexington,
      MA, pp. 87-199.
Teece, D.J., Pisano, G. and Shuen, A. (1997), “Dynamic capabilities and strategic management”,
      Strategic Management Journal, Vol. 18 No. 7, pp. 509-33.
                                              ´                              ˜     ´
Tonietto, J. and Carbonneau, A. (1999), “Analise mundial do clima das regioes vitıcolas e de sua
            ˆ
      influencia sobre a tipicidade dos vinhos”, Annals of the IX Congresso Brasileiro de
      Viticultura e Enologia, Bento Goncalves, pp. 75-90.
                                           ¸
Wernerfelt, B. (1984), “A resource-based view of the firm”, Strategic Management Journal, Vol. 5
      No. 2, pp. 171-80.
Zahra, S.A. and Das, S.R. (1993), “Building competitive advantage on manufacturing resources”,
      Long Range Planning, Vol. 26 No. 2, pp. 90-100.

Más contenido relacionado

La actualidad más candente

Explicating resource-based view 
critiques from a competitive heterogeneity p...
Explicating resource-based view 
critiques from a competitive heterogeneity p...Explicating resource-based view 
critiques from a competitive heterogeneity p...
Explicating resource-based view 
critiques from a competitive heterogeneity p...Kevin Rommen
 
A Resourced Based View of Entreprenuership
A Resourced Based View of EntreprenuershipA Resourced Based View of Entreprenuership
A Resourced Based View of EntreprenuershipFahim Akhtar
 
Resource-based Views of Competitive Strategy
Resource-based Views of Competitive StrategyResource-based Views of Competitive Strategy
Resource-based Views of Competitive StrategyKivanc Ozuolmez
 
Resource based view of the firm [lockett, morgenstern and thompson, internati...
Resource based view of the firm [lockett, morgenstern and thompson, internati...Resource based view of the firm [lockett, morgenstern and thompson, internati...
Resource based view of the firm [lockett, morgenstern and thompson, internati...tamoni
 
Peteraf 19931 (1)
Peteraf 19931 (1)Peteraf 19931 (1)
Peteraf 19931 (1)Rafik Jemai
 
Firm Resources and Sustained Competitive Advantage
Firm Resources and Sustained Competitive AdvantageFirm Resources and Sustained Competitive Advantage
Firm Resources and Sustained Competitive AdvantageRiri Kusumarani
 
Resource Based view (RBV) and 13 Criticisms
Resource Based view (RBV) and 13 CriticismsResource Based view (RBV) and 13 Criticisms
Resource Based view (RBV) and 13 CriticismsHassanShahzad48
 
Firm`s resources
Firm`s resourcesFirm`s resources
Firm`s resourcesTet Velasco
 
Resources based view
Resources based viewResources based view
Resources based viewRetno Kusuma
 
Functional Capability and Resource Analysis Presentation
Functional Capability and Resource Analysis PresentationFunctional Capability and Resource Analysis Presentation
Functional Capability and Resource Analysis PresentationBrandon Thomson
 
Functional Capability and Resource Analysis Methodology Report
Functional Capability and Resource Analysis Methodology ReportFunctional Capability and Resource Analysis Methodology Report
Functional Capability and Resource Analysis Methodology ReportBrandon Thomson
 
Io & resource based model
Io & resource based modelIo & resource based model
Io & resource based modelSagar Mistry
 
Dynamic Capabilities
Dynamic CapabilitiesDynamic Capabilities
Dynamic CapabilitiesSrini Kumar
 
Media Management Module 1 Strategy teigland jan24
Media Management Module 1 Strategy teigland jan24Media Management Module 1 Strategy teigland jan24
Media Management Module 1 Strategy teigland jan24Robin Teigland
 
##Looking inside for competitive advantage
##Looking inside for competitive advantage##Looking inside for competitive advantage
##Looking inside for competitive advantageMayank Parashar
 
Mahmood Qasim Strategic Management Chap001
Mahmood Qasim Strategic Management Chap001Mahmood Qasim Strategic Management Chap001
Mahmood Qasim Strategic Management Chap001mahmoodku
 

La actualidad más candente (18)

Explicating resource-based view 
critiques from a competitive heterogeneity p...
Explicating resource-based view 
critiques from a competitive heterogeneity p...Explicating resource-based view 
critiques from a competitive heterogeneity p...
Explicating resource-based view 
critiques from a competitive heterogeneity p...
 
A Resourced Based View of Entreprenuership
A Resourced Based View of EntreprenuershipA Resourced Based View of Entreprenuership
A Resourced Based View of Entreprenuership
 
Resource-based Views of Competitive Strategy
Resource-based Views of Competitive StrategyResource-based Views of Competitive Strategy
Resource-based Views of Competitive Strategy
 
Resource based view of the firm [lockett, morgenstern and thompson, internati...
Resource based view of the firm [lockett, morgenstern and thompson, internati...Resource based view of the firm [lockett, morgenstern and thompson, internati...
Resource based view of the firm [lockett, morgenstern and thompson, internati...
 
Peteraf 19931 (1)
Peteraf 19931 (1)Peteraf 19931 (1)
Peteraf 19931 (1)
 
Firm Resources and Sustained Competitive Advantage
Firm Resources and Sustained Competitive AdvantageFirm Resources and Sustained Competitive Advantage
Firm Resources and Sustained Competitive Advantage
 
Case
CaseCase
Case
 
Resource Based view (RBV) and 13 Criticisms
Resource Based view (RBV) and 13 CriticismsResource Based view (RBV) and 13 Criticisms
Resource Based view (RBV) and 13 Criticisms
 
Firm`s resources
Firm`s resourcesFirm`s resources
Firm`s resources
 
Huma
HumaHuma
Huma
 
Resources based view
Resources based viewResources based view
Resources based view
 
Functional Capability and Resource Analysis Presentation
Functional Capability and Resource Analysis PresentationFunctional Capability and Resource Analysis Presentation
Functional Capability and Resource Analysis Presentation
 
Functional Capability and Resource Analysis Methodology Report
Functional Capability and Resource Analysis Methodology ReportFunctional Capability and Resource Analysis Methodology Report
Functional Capability and Resource Analysis Methodology Report
 
Io & resource based model
Io & resource based modelIo & resource based model
Io & resource based model
 
Dynamic Capabilities
Dynamic CapabilitiesDynamic Capabilities
Dynamic Capabilities
 
Media Management Module 1 Strategy teigland jan24
Media Management Module 1 Strategy teigland jan24Media Management Module 1 Strategy teigland jan24
Media Management Module 1 Strategy teigland jan24
 
##Looking inside for competitive advantage
##Looking inside for competitive advantage##Looking inside for competitive advantage
##Looking inside for competitive advantage
 
Mahmood Qasim Strategic Management Chap001
Mahmood Qasim Strategic Management Chap001Mahmood Qasim Strategic Management Chap001
Mahmood Qasim Strategic Management Chap001
 

Similar a Use of resource based view in industrial cluster strategic analysis

Publishing companies online strategies
Publishing companies online strategiesPublishing companies online strategies
Publishing companies online strategiesMiia Kosonen
 
DEVELOPING A QUALITATIVE SINGLE CASE STUDY IN THE REALM-AN APPROPRIATE RESEAR...
DEVELOPING A QUALITATIVE SINGLE CASE STUDY IN THE REALM-AN APPROPRIATE RESEAR...DEVELOPING A QUALITATIVE SINGLE CASE STUDY IN THE REALM-AN APPROPRIATE RESEAR...
DEVELOPING A QUALITATIVE SINGLE CASE STUDY IN THE REALM-AN APPROPRIATE RESEAR...Dr. Hanningtone Gaya PhD.,EBS
 
TOWARDS PARSIMONY IN TERMINOLOGY USED IN THE VALUE CREATING PROCESS FOR SOURC...
TOWARDS PARSIMONY IN TERMINOLOGY USED IN THE VALUE CREATING PROCESS FOR SOURC...TOWARDS PARSIMONY IN TERMINOLOGY USED IN THE VALUE CREATING PROCESS FOR SOURC...
TOWARDS PARSIMONY IN TERMINOLOGY USED IN THE VALUE CREATING PROCESS FOR SOURC...Dr. Hanningtone Gaya PhD.,EBS
 
theories-of-supply-chain-management.pdf
theories-of-supply-chain-management.pdftheories-of-supply-chain-management.pdf
theories-of-supply-chain-management.pdfSaid El malki
 
Operational Research and Organizational System
Operational Research and Organizational SystemOperational Research and Organizational System
Operational Research and Organizational SystemIJRES Journal
 
Mitigating resisting
Mitigating resistingMitigating resisting
Mitigating resistingTabarak Ahmed
 
Corporate entrepreneurship and business performance the moderating role of o...
Corporate entrepreneurship and business performance  the moderating role of o...Corporate entrepreneurship and business performance  the moderating role of o...
Corporate entrepreneurship and business performance the moderating role of o...Ying wei (Joe) Chou
 
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...IOSRJBM
 
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...Samsul Alam
 
7.a theory
7.a theory7.a theory
7.a theorylibfsb
 
A Study Of Evolution And Future Of Supply Chain Management
A Study Of Evolution And Future Of Supply Chain ManagementA Study Of Evolution And Future Of Supply Chain Management
A Study Of Evolution And Future Of Supply Chain ManagementSean Flores
 
The relationship between generic strategies and organizational performance: A...
The relationship between generic strategies and organizational performance: A...The relationship between generic strategies and organizational performance: A...
The relationship between generic strategies and organizational performance: A...AI Publications
 
3.a comparative
3.a comparative3.a comparative
3.a comparativelibfsb
 
3.a comparative
3.a comparative3.a comparative
3.a comparativelibfsb
 
product diversification
product diversificationproduct diversification
product diversificationumesh yadav
 
Firm Resources and Sustained Competitive Advantage by Jay Barney
Firm Resources and Sustained Competitive Advantage by Jay BarneyFirm Resources and Sustained Competitive Advantage by Jay Barney
Firm Resources and Sustained Competitive Advantage by Jay Barneychitwarnold
 
Performance management
Performance managementPerformance management
Performance managementvasudhapaul
 
Supply chain managementtheory, practice and futurechall.docx
Supply chain managementtheory, practice and futurechall.docxSupply chain managementtheory, practice and futurechall.docx
Supply chain managementtheory, practice and futurechall.docxpicklesvalery
 

Similar a Use of resource based view in industrial cluster strategic analysis (20)

Publishing companies online strategies
Publishing companies online strategiesPublishing companies online strategies
Publishing companies online strategies
 
DEVELOPING A QUALITATIVE SINGLE CASE STUDY IN THE REALM-AN APPROPRIATE RESEAR...
DEVELOPING A QUALITATIVE SINGLE CASE STUDY IN THE REALM-AN APPROPRIATE RESEAR...DEVELOPING A QUALITATIVE SINGLE CASE STUDY IN THE REALM-AN APPROPRIATE RESEAR...
DEVELOPING A QUALITATIVE SINGLE CASE STUDY IN THE REALM-AN APPROPRIATE RESEAR...
 
TOWARDS PARSIMONY IN TERMINOLOGY USED IN THE VALUE CREATING PROCESS FOR SOURC...
TOWARDS PARSIMONY IN TERMINOLOGY USED IN THE VALUE CREATING PROCESS FOR SOURC...TOWARDS PARSIMONY IN TERMINOLOGY USED IN THE VALUE CREATING PROCESS FOR SOURC...
TOWARDS PARSIMONY IN TERMINOLOGY USED IN THE VALUE CREATING PROCESS FOR SOURC...
 
theories-of-supply-chain-management.pdf
theories-of-supply-chain-management.pdftheories-of-supply-chain-management.pdf
theories-of-supply-chain-management.pdf
 
Operational Research and Organizational System
Operational Research and Organizational SystemOperational Research and Organizational System
Operational Research and Organizational System
 
Mitigating resisting
Mitigating resistingMitigating resisting
Mitigating resisting
 
Corporate entrepreneurship and business performance the moderating role of o...
Corporate entrepreneurship and business performance  the moderating role of o...Corporate entrepreneurship and business performance  the moderating role of o...
Corporate entrepreneurship and business performance the moderating role of o...
 
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...
 
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...
Impact of Blue Ocean Strategy on Organizational Performance: A literature rev...
 
7.a theory
7.a theory7.a theory
7.a theory
 
A Study Of Evolution And Future Of Supply Chain Management
A Study Of Evolution And Future Of Supply Chain ManagementA Study Of Evolution And Future Of Supply Chain Management
A Study Of Evolution And Future Of Supply Chain Management
 
The relationship between generic strategies and organizational performance: A...
The relationship between generic strategies and organizational performance: A...The relationship between generic strategies and organizational performance: A...
The relationship between generic strategies and organizational performance: A...
 
3.a comparative
3.a comparative3.a comparative
3.a comparative
 
3.a comparative
3.a comparative3.a comparative
3.a comparative
 
Full Disseratation
Full DisseratationFull Disseratation
Full Disseratation
 
product diversification
product diversificationproduct diversification
product diversification
 
Firm Resources and Sustained Competitive Advantage by Jay Barney
Firm Resources and Sustained Competitive Advantage by Jay BarneyFirm Resources and Sustained Competitive Advantage by Jay Barney
Firm Resources and Sustained Competitive Advantage by Jay Barney
 
100_IJAR-15975.pdf
100_IJAR-15975.pdf100_IJAR-15975.pdf
100_IJAR-15975.pdf
 
Performance management
Performance managementPerformance management
Performance management
 
Supply chain managementtheory, practice and futurechall.docx
Supply chain managementtheory, practice and futurechall.docxSupply chain managementtheory, practice and futurechall.docx
Supply chain managementtheory, practice and futurechall.docx
 

Más de tamoni

Value, profit and risk accounting and the resource-based view of the firm
Value, profit and risk  accounting and the resource-based view of the firmValue, profit and risk  accounting and the resource-based view of the firm
Value, profit and risk accounting and the resource-based view of the firmtamoni
 
Understanding the influence of information systems competencies on process in...
Understanding the influence of information systems competencies on process in...Understanding the influence of information systems competencies on process in...
Understanding the influence of information systems competencies on process in...tamoni
 
Resource based competitiveness
Resource based competitivenessResource based competitiveness
Resource based competitivenesstamoni
 
Market pioneers, late movers, and the resource based view (rbv)- a conceptual...
Market pioneers, late movers, and the resource based view (rbv)- a conceptual...Market pioneers, late movers, and the resource based view (rbv)- a conceptual...
Market pioneers, late movers, and the resource based view (rbv)- a conceptual...tamoni
 
Constructing a definition for intangibles using the resource based view of th...
Constructing a definition for intangibles using the resource based view of th...Constructing a definition for intangibles using the resource based view of th...
Constructing a definition for intangibles using the resource based view of th...tamoni
 
Assessing the relationship between firm resources and product innovation perf...
Assessing the relationship between firm resources and product innovation perf...Assessing the relationship between firm resources and product innovation perf...
Assessing the relationship between firm resources and product innovation perf...tamoni
 
A resource based view of micro-firm management practice
A resource based view of micro-firm management practiceA resource based view of micro-firm management practice
A resource based view of micro-firm management practicetamoni
 

Más de tamoni (7)

Value, profit and risk accounting and the resource-based view of the firm
Value, profit and risk  accounting and the resource-based view of the firmValue, profit and risk  accounting and the resource-based view of the firm
Value, profit and risk accounting and the resource-based view of the firm
 
Understanding the influence of information systems competencies on process in...
Understanding the influence of information systems competencies on process in...Understanding the influence of information systems competencies on process in...
Understanding the influence of information systems competencies on process in...
 
Resource based competitiveness
Resource based competitivenessResource based competitiveness
Resource based competitiveness
 
Market pioneers, late movers, and the resource based view (rbv)- a conceptual...
Market pioneers, late movers, and the resource based view (rbv)- a conceptual...Market pioneers, late movers, and the resource based view (rbv)- a conceptual...
Market pioneers, late movers, and the resource based view (rbv)- a conceptual...
 
Constructing a definition for intangibles using the resource based view of th...
Constructing a definition for intangibles using the resource based view of th...Constructing a definition for intangibles using the resource based view of th...
Constructing a definition for intangibles using the resource based view of th...
 
Assessing the relationship between firm resources and product innovation perf...
Assessing the relationship between firm resources and product innovation perf...Assessing the relationship between firm resources and product innovation perf...
Assessing the relationship between firm resources and product innovation perf...
 
A resource based view of micro-firm management practice
A resource based view of micro-firm management practiceA resource based view of micro-firm management practice
A resource based view of micro-firm management practice
 

Último

Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 

Último (20)

Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 

Use of resource based view in industrial cluster strategic analysis

  • 1. International Journal of Operations & Production Management Emerald Article: Use of resource-based view in industrial cluster strategic analysis Eduardo de Oliveira Wilk, Jaime Evaldo Fensterseifer Article information: To cite this document: Eduardo de Oliveira Wilk, Jaime Evaldo Fensterseifer, (2003),"Use of resource-based view in industrial cluster strategic analysis", International Journal of Operations & Production Management, Vol. 23 Iss: 9 pp. 995 - 1009 Permanent link to this document: http://dx.doi.org/10.1108/01443570310491747 Downloaded on: 07-12-2012 References: This document contains references to 37 other documents Citations: This document has been cited by 12 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 4741 times since 2005. * Access to this document was granted through an Emerald subscription provided by UNIVERSITY OF THE ARTS LONDON For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. *Related content and download information correct at time of download.
  • 2. The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at http://www.emeraldinsight.com/researchregister http://www.emeraldinsight.com/0144-3577.htm Industrial cluster Use of resource-based view in strategic industrial cluster strategic analysis analysis 995 Eduardo de Oliveira Wilk and Jaime Evaldo Fensterseifer School of Administration (PPGA/EA) and Agribusiness Research Center (CEPAN), Federal University of Rio Grande do Sul (UFRGS), Brazil Keywords Resources, Cluster analysis, Strategic evaluation, Industrial performance, Winemaking, Brazil Abstract The resource-based view of the firm has recently emerged as a new paradigm in strategic analysis. According to this view, firms are heterogeneous collections of resources that lead them to distinct market performance. This paper uses this approach not to analyse an individual firm but a cluster of firms, whose competitiveness depends not only on their individual resources and capabilities but also on those shared by the cluster as a whole. The analysis was developed for a wine cluster located in southern Brazil. The main objective was the identification of the resources and capabilities shared by the cluster in its effort to formulate sustainable competitive strategies. The research method employed combined the techniques of cognitive mapping analysis with the theoretical basis of the resource-based view approach. The results of the study produced a significant improvement in managers’ and strategists’ perceptions about the competitive potential of the cluster. Introduction One of the central purposes of strategy formulation and implementation is the development and sustaining of competitive advantages. The theories in this field are under constant scrutiny and frameworks and analytical models that search to explain the nature of competition among firms abound in the strategy literature. In essence, there is a need for an understanding of why some firms perform better than others while the competitive environment remains the same for all firms. Amongst the most relevant contributions in this sense are Porter’s (1980, 1985) five competitive forces model, with its roots in industrial organisation. Despite the strong contribution of this analytic approach, more recent research is paying greater attention to the firms’ internal environment, looking for factors like knowledge and other intangible strategic assets to explain differences in performance. This type of approach is embodied in the so-called “resource-based view (RBV) of the firm”. This paper follows this stream of research. It presents the results obtained in a process of strategic analysis carried out for a wine cluster in southern Brazil. The main objectives were to identify the strategic resources and capabilities of International Journal of Operations & the cluster and to develop an understanding of their interactions and the Production Management Vol. 23 No. 9, 2003 conditioning factors that can lead to sustainable competitive advantages. pp. 995-1009 The research method employed combined the techniques of cognitive q MCB UP Limited 0144-3577 mapping analysis with the theoretical basis of the RBV approach. The results DOI 10.1108/01443570310491747
  • 3. IJOPM of the study produced a significant improvement in managers’ and strategists’ 23,9 perceptions about the cluster’s strategic resources and capabilities and hence of its competitive potential. Although individual firms have been the preferred unit of analysis in strategy literature, today, in a world of alliances and coalitions, competition increasingly occurs between supply chains, networks of firms, or clusters. A 996 cluster, whose role in competition has only recently been widely recognised, can be defined as a geographical concentration of inter-related firms, specialised suppliers, knowledge producers and research centres, brokers, consultants and consumers, connected in a value producing chain (Porter, 1990). In this study, the same principles and constructs of the resource-based approach applicable to the individual firm were applied to the cluster and its collective resources and capabilities. The study is structured as follows. The next section presents the main theoretical concepts of the resource-based approach, exploring issues like strategic attributes and relationship between resources. The following section discusses the methodological steps taken in this research study, where the elaboration of cognitive maps plays a central role. Finally, the wine cluster analysis and a discussion of the main results are presented. The RBV of the firm Positioning a firm for competitive advantage through the correct understanding of its strengths and weaknesses has been one of the basic prescriptions in the strategy field since the developments of Ansoff (1968) and Andrews (1971). This prescription, however, remained for a long time at a conceptual level, lacking tools for a deeper analysis of firms’ resources, which constitute the ultimate basis for firms “strengths and weaknesses”. Today, the RBV of the firm has rediscovered its roots in the studies of Selznick (1957) and Penrose (1959), and is establishing itself as a promising and insightful field of research. This approach “views” firms as different amalgams of productive and strategic resources and capabilities that lead them to different performance potentials. As Barney (1991) noted, all firms are different because they do not have the same history, the same experiences, the same organisational culture or the same assets and abilities. In its modern form, the RBV approach has been object of the works of Wernerfelt (1984), Rumelt (1984, 1991), Dierickx and Cool (1989), Barney (1986, 1991, 2001), Teece (1986), Grant (1991), Mahoney and Pandian (1992), Amit and Shoemaker (1993), Peteraf (1993), Foss (1997), Teece et al. (1997), Castanias and Helfat (2001), Lockett and Thompson (2001) and Mahoney (2001), among others. Some important research themes concerning the RBV approach includes the classification of strategic resources (Barney, 1991; Grant, 1991; Zahra and Das,
  • 4. 1993), the identification of strategic resources and their interactions (Amit and Industrial cluster Shoemaker, 1993; Black and Boal, 1994), the valuation of strategic resources strategic (Collis, 1994), and the resource acquisition and formation processes (Barney, analysis 1986; Bernardo and Chowdhry, 2002). This paper deals with the second theme and the approach taken here is to explore the conditions that make a resource become strategic. 997 The strategic nature of a resource Resources can be classified in three main categories (Penrose, 1959; Barney, 1991; Grant, 1991): (1) physical resources, like plants and equipment, land, natural resources and raw materials; (2) human resources, including the productive, technical and managerial workers; and (3) organisational resources, formed by the routines that coordinate the human and physical resources in a productive way. Resources can also be “tangible”, which can be observed and evaluated with clarity, like physical resources, and “intangible”, which cannot be directly observed or quantified, like the reputation of a company or a product, organisational culture, management and coordination abilities, non-documented technologies and knowledge, among others. Resources and capabilities can be defined as “strategic” when they are valuable, rare, inimitable, non-substitutable, or still, ambiguous to competitors and can be used as basis for the achievement of competitive advantages. Additionally, a fundamental distinction between resources and capabilities is that resources consist of a bundle of potential services whereas capabilities can be defined as the services, activities or functions itself, played by these resources (Penrose, 1959; Mahoney and Pandian, 1992). The search for special attributes that characterise the strategic value of a resource leads us to an extensive list of terms. Although researchers have explored these attributes under different names, a deeper analysis of the main studies of Wernerfelt (1984), Rumelt (1984), Teece (1986), Dierickx and Cool (1989), Barney (1991), Grant (1991), Amit and Shoemaker (1993) and Black and Boal (1994) shows a strong similarity of ideas. Peteraf (1993) developed a framework that synthesised most of these ideas in four necessary conditions that must exist for a resource to be considered strategic, referred to as the “cornerstones of competitive advantage”: heterogeneity, imperfect mobility, ex ante limits to competition and ex post limits to competition. Each one is next briefly described, as they constitute important elements of the conceptual basis of our study.
  • 5. IJOPM Heterogeneity 23,9 According to Peteraf (1993), heterogeneity in an industry can involve situations in which the amount of strategic resources is limited and scarce in relation to its demand. Under this condition, inferior or inefficient resources are used in production in order to supply the residual demand. In this context, a possibility of superior profits (economic rent) emerges for the most efficient firms. This 998 argument can be more clearly understood if we assume that firms with superior resources have lower average production costs than the other firms. However, being limited by the scarcity of the resources they cannot expand production quickly even if prices are very high. The high prices, however, can induce other, less efficient, firms to enter the market. When equilibrium occurs between demand and supply, and prices reach its own equilibrium, these companies will have their profits lowered to the equilibrium point and the lower cost firms will obtain higher profits by using their superior resources. Thus, the more efficient firms are able to sustain their competitive advantages as long as their resources cannot be imitated or expanded to the demand level. The efficiency differential (heterogeneity) in relation to other firms’ resources and the existence of scarcity in relation to demand are essential conditions to improve profit performance through the use of a strategic (superior) resource. Ex ante limits to competition The existence of ex ante limits to competition, as defined by Peteraf (1993), implies that prior to the establishment of a superior position in resources there must exist a limited competition for that position. Peteraf (1993) states that a position in resources can only be a source of superior performance if the firm has an opportunity to acquire them in the absence of competition. Thus, the value of the resources cannot be known to all competitors prior to their acquisition and use, for otherwise it would generate a competition for these resources and consequently profits would be eroded. Concerning this point, unless a difference exists between the ex post value of the necessary resources and their ex ante acquisition cost, the generated above normal profits (economic rent) can be null (Rumelt, cited in Peteraf, 1993). Ex post limits to competition The need of ex post limits to competition implies that after a firm establishes a superior competitive position through heterogeneous resources in relation to its competitors, there must exist factors that sustain the durability of this heterogeneity condition in a way that preserves the attained superior position. Peteraf (1993) considers as main conditions that limit ex post competition the presence of “imperfect imitability” and “imperfect substitutability” of a resource. The performance of competitors through imitation or substitution, increasing the supply of a resource initially scarce, can dissipate the profits in a competitive environment. The capacity to protect a resource against imitation
  • 6. or substitution depends on a series of factors. Among these are issues described Industrial cluster by Rumelt (1984) and Dierickx and Cool (1989) as “isolation mechanisms” strategic (Peteraf, 1993). The most important isolation mechanisms are the analysis indetermination or causal ambiguity of the knowledge involved in the acquisition of a resource, the degree of asset complementarities and the existence of “path-dependent” factors. 999 “ Indetermination” or “causal ambiguity” exists when the competitors are unable to identify which are the valuable resources or how to recreate or define them (Reed and DeFillippi, 1990). For example, in the case of non-codified knowledge, causal ambiguity renders difficult to identify, from a competitive position standpoint, which resources sustain that position. Thus, the idiosyncrasies of the learning process, rather than representing a problem are, in some cases, a desirable condition to sustain a competitive advantage. A “path-dependence” condition, in turn, means that a resource or asset was developed and accumulated in a process through time, generally in a learning sequence involving trial and error. Imperfect mobility The “imperfect mobility” condition of a resource implies that, although this resource can be traded, it is much more valuable in the firm in which it is currently being used than it would be in another firm. The resources are imperfectly mobile when they are somewhat specialised or exclusively developed or adapted for the needs of the company that possesses them. Concerning this aspect, Teece (1986) argues that certain groups of resources only produce value when used jointly, referring to them as “co-specialised assets”. Another source of “imperfect resource mobility” is present when the associated transaction or mobility costs for this resource are excessively high in relation to its value (Rumelt, cited in Peteraf, 1993). Certain resources, however, are configured or related in such a way that it becomes difficult for both sellers and buyers to analyse them and determine their costs or individual values. These “information asymmetries” prevent a likely buyer to have access to a proper evaluation of these resources, hindering therefore their negotiation or change of hands (Barney, 1991). The consideration of the conditioning factors described above is hence an essential step in the evaluation of the resources and capabilities of a firm and in signalling the path for the identification of the ones that have strategic value. And, since the strategic value of a firm’s resources resides not only in its individual attributes but also in the total effect of its complex and systemic interaction (Black and Boal, 1994), a systemic understanding of these attributes and interactions provides the foundations for a firm, or a cluster, to identify its sources of advantages and possible scope of competition.
  • 7. IJOPM Research methodology 23,9 Strategy formulation in the managerial field is characterised by a strong dependence on the context in which a firm is embedded, which renders direct observation of resources and capabilities very difficult. But, on the other hand, it is precisely in this difficulty of observation and codification that lies their strategic value, since competitors cannot easily emulate them. In other words, 1000 the same conditions that create a problem for competitors, as well as for empirical researchers, are precisely the sources of strategic value of these resources and capabilities. Concerning this problem, Godfrey and Hill (1995) noted that the evidence of unobservable factors could be checked through the observation of their effects, independently of the possibility of formal and direct observation of these factors. According to the authors, qualitative methodologies and case studies are of extreme value in the investigation of these unobservable factors and it was the methodology chosen for this study. In order to identify the resources and capabilities of the wine cluster we used in-depth interviews with experts from the wine sector, followed by the elaboration and analysis of cognitive maps, which constitute graphic representations of the collective knowledge of the interviewed experts. Cognitive maps can be defined as “graphs” elaborated by a person or a group of persons on the subjective aspects of a problem, which are rendered explicit by the use of induction (Howard, 1989; Calori et al., 1994). These maps contribute to the understanding of the images and the words used for the mental representation of a reasoning process and are thus useful in the process of analysing and modelling complex problems characterised by subjective ideas about the reality. The methodological steps of the research are depicted in Figure 1 and described below. The first step consisted of forming a group of experts on the wine industry. Eight experts were chosen among managers, agronomists, oenologists and economists, as shown in Table I. They were selected based on their involvement with different aspects of the wine cluster. This group was one of the main sources of information throughout the study. The data collection was accomplished through in-depth semi-structured interviews (step 2) with the group of experts. The interviews were recorded with the interviewees’ acquiescence, had an average duration of 90 minutes and were transcribed in its entirety immediately after its conclusion. The main objective of this step was to characterise the set of resources of the cluster as a starting point for the identification of its strategic resources and capabilities. In these interviews the strategic value of the resources were appraised based on Peteraf’s (1993) four conditions for a resource to be strategic. The third step consisted of the content analysis. This was carried out in three different stages, adapted from Moraes (1993):
  • 8. Industrial cluster strategic analysis 1001 Figure 1. Main methodological steps Expert Function Experience in industry (years) 1 Oenologist 18 2 Marketing director of a winery 20 3 Researcher from Embrapaa 10 4 Researcher from Embrapaa 15 5 Economist 20 6 Viticulturist 35 7 Owner of small winery 15 Table I. 8 Director of large winery 40 Group of experts from Note: a Federal Agricultural Research Centre wine sector (1) Preparation of the information. Working with the transcribed interviews, this first stage consisted of selecting and highlighting the important aspects pertinent to the study, like history, learning trajectory and industry infrastructure. (2) Transformation of the general content into concepts. This stage was carried out in two different moments: separation of text into paragraphs, in accordance to the thematic content; and successive synthesis of each paragraph in order to identify concepts that represent central ideas, knowledge fragments and important events, conserving the original meaning as well as the interviewees’ own words.
  • 9. IJOPM (3) Classification of the identified concepts into categories. Consisted of 23,9 grouping the concepts of each interview by thematic similarity and eliminating duplicate ones. Having concluded the content analysis, the next step (step 4) consisted of the elaboration of the basic cognitive maps. These basic maps will evolve, in the 1002 sequence of steps, to intermediary maps and finally to a global map. Since cognitive mapping is the central technique used in our study, further details are next provided. As shown in Figure 2, there are three basic types of concepts in the general structure of a cognitive map: (1) tail concepts, which indicate primary concepts that can represent single ideas, actions, or initial events; (2) branch concepts, which represent key ideas, actions or events that synthesize the reasoning of the experts and identify convergences between primary concepts and their final effects; and (3) head concepts, which indicate the final effects. Thus, in step 4, a basic cognitive map was elaborated for each processed interview. This was accomplished with the aid of a mapping software, having as input the concepts generated in the content analysis of step 3. At the end of this section we provide information on the software used. Next, in step 5, each basic map and its links were reviewed with each interviewee and the relationships between concepts were analysed in terms of two aspects: domain and centrality. Figure 2. General structure of a cognitive map
  • 10. The domain analysis examines each concept and calculates how many Industrial cluster concepts are “immediately” linked to it. It provides a first level measure of the strategic density of a concept and serves mainly as a support to selective examination analysis when working with large and complex maps. The centrality analysis examines each concept and calculates a “centrality score” based on how many concepts are directly or indirectly linked to it. Through centrality analysis it is possible to identify which concepts have a 1003 high density of links and thus a high weight on the entire map; these are considered to be “central concepts”. This analysis may provide some insight into discovering which concepts are key issues and may need further examination in order to identify evidences of their strategic nature. In step 6, the basic maps generated were compared and similarities between them were identified. Then, in step 7, maps were combined and merged into new ones, called intermediary maps. In step 8 the intermediary maps were validated in a series of meetings with the entire group of experts. In these meetings, mediated by a negotiation process within the group, the intermediary maps were reviewed one by one and relationships between them were identified. The negotiation and established relations between maps led to the emergence of a shared view among experts, represented by a global cognitive map (step 9). At this step the group of experts concentrated on the content of the generated global map in order to identify new relationships among the individually generated concepts. It is the global view at this step of the method that allows for the possibility of a synthesis and of a new view of the data. The global map with all relationships between concepts validated is the input to step 10, which consisted of identifying the strategic resources and capabilities of the cluster of firms. This was accomplished by the means of a centrality score for each concept, this time calculated for the global map. Since the map is a representation of history, knowledge and the inter-related resources and capabilities of the cluster, each concept with a high centrality score was judged by the group of experts on whether or not it represents a strategic resource or capability. Cognitive mapping with the aid of a mapping software The identification of a collection of strategic resources and capabilities of a firm or a cluster of firms requires analysis of a complex web of information and cause-effect relationships between concepts. Mapping software can be very useful aids in this process. In our research we made use of the software COPE, developed at the University of Strathclyde, Scotland. It belongs to the category of tools called IGDSS (interactive group decision support systems), which make use of graphic resources that allow members of a group to acquire a shared global perspective on a complex problem.
  • 11. IJOPM The case of the southern Brazil wine cluster 23,9 According to the Office International de la Vigne et du Vin (OIV), wine production activities are present in all five continents in more than 40 countries (Tonietto and Carbonneau, 1999). The world expansion of viniculture is intimately connected to the migratory flows and to the process of fixation of the populations. Thus, in the early stages 1004 of development the choice of the ideal ecosystems did not constitute one of the main concerns. Historical circumstances and economic needs demanded sometimes, by lack of totally appropriate areas, art and ingenuity on the part of the viticulturists in order to surpass the inadequacies of the physical environment (Aguiar, 1999a). Similarly to other industries, the wine business followed the progressive globalisation of activities and internationalisation of markets. The product “wine”, however, has some important peculiarities that must be mentioned. In fact, as Aguiar (1999a, p. 25) points out, “wine is not a common merchandise: it cannot be produced anywhere and must obey rules that are far more complex than the simple minimisation of production costs”. According to the author, the location of the vineyards, like any other unit of agro-industrial production, is subject to the rules of competitive as well as comparative advantages; each area has its own and they are more important and decisive for its image and position in the market than production costs alone. In addition, the final product of the wine industry is not a simple output of natural factors, but of a combination of culture, talent and multiple and complex expertise. No producing area can be simply classified as good or bad land, but as different in its potentialities. This way, the exploration of each differentiating factor becomes necessary in the formulation of cluster strategies. Structural context The evolution of the wine and grape business in southern Brazil is an interesting example because, according to Aguiar (1999b), it constitutes simultaneously a repository of the expertise brought by immigrants from their original countries and the expression of adaptation capabilities to adverse topographical conditions and climatic matters. Additionally, there is presently an increasing awareness of the need for a qualitative upgrade towards a strategic positioning that better exploits new market opportunities. The Brazilian wine history dates back to the Portuguese colonisation in the sixteenth century, even though its current development is due primarily to the arrival of Italian immigrants, beginning in 1875. Brazil now occupies the 17th position in the world ranking of wine producers and the wine and grape business is a consolidated activity in 12 producing areas in the states of ´ ˜ Rio Grande do Sul, Santa Catarina, Parana, Sao Paulo, Minas Gerais and, of late ˜ prominence, the Sao Francisco Valley, in the northeast (Falcade and Mandelli, 1999).
  • 12. The national production of wine in recent years averages approximately 300 Industrial cluster million litres per year. The Brazilian wine and grape business is conducted, for strategic its most part, in small family-owned properties, generally involving a great analysis variety of grapes. About 65 per cent of the grape production is destined for wine, juice, distilled and other derived products, while 35 per cent is destined for consumption in natura. Southern Brazil’s wineries, mainly concentrated in the state of Rio Grande do Sul, account for 93 per cent of the national 1005 production. The cluster object of this study is located in this state, averaging about 120km from the capital city of Porto Alegre, and comprises about 400 wineries and family canteens. One of Brazil’s main competitors is Argentina, with a production of 2.17 million litres/year. Being the main producer as well as the main consumer market in the Mercosur area (a custom union formed by Argentina, Brazil, Paraguay and Uruguay), this country stands out at the world level, being the fourth largest producer and having the fourth highest per capita consumption (40 litres per person/year), according to data from EMBRAPA (Brazilian Agricultural Research Company). Compared to other countries, Brazilian wine consumption is extremely low, limited to about two litres per person/year, while in France and Italy it is around 70 litres per person/year. Thus, the Brazilian wine market, rather than being considered unattractive, should be looked at for its great expansion potential. The Brazilian wine industry has been systematically searching for ways of developing its potentialities to attain a better market position for its wines. The present study aims at contributing towards this end and constitutes an important first step in that direction, being useful for strategic decision making for the cluster as a whole as well as for individual firms. Results and discussion The global cognitive map comprises 170 concepts. As a basis for discussion of the results, Figure 3 presents a condensed view of the map, considering only the concepts with higher centrality scores and their neighbouring links. For identification purposes, each concept received a number, assigned by COPE as it was registered in the cognitive map. Analysing the map, we observe as starting points some initial events that influenced the directions of the development trajectory adopted by the industry (tail concepts 7 and 29). These events lead to abilities in mountain agriculture (concept 11) and grape varieties adaptation (concept 26), which reveal a great specialisation and path dependency; this is in turn related to the attributes of long learning curve and thus high training costs demanded in technical schools (concepts 145 and 22). Also, certain non-codified knowledge mentioned by the experts (concepts 46 and 38) constitutes barriers to competition. Other capabilities acquired by successive studies and experiments were the exploration of topographical variations and climatic conditions (concepts 12,
  • 13. IJOPM 23,9 1006 Figure 3. Partial view of cognitive map 24 and 33) that related with mountain agriculture (concept 11), leads to multiple and unique wine types (concept 111). In turn, these multiple wine types associated with the concept of mountain agriculture (concept 11) and the good road infrastructure (concept 53) enables tourism exploration (concept 129), which is one of the strategic advantages of the analysed cluster. From the exploration of each part of the map, the group of experts was able to identify many complex connections and paths between concepts, as well as direct and indirect effects that unveil attributes related to their strategic nature. The strategic resources and capabilities identified in this process are listed in Table II, which also shows the attributes that sustain them as sources of competitive advantage.
  • 14. Strategic resources and capabilities Conditions that sustain competitive advantage Industrial cluster strategic Expertise in exploitation of multiple Path dependence, topographical knowledge analysis topographies with vineyards with long learning curve, non-codified expertise Tourist attractiveness of mountainous Immobility, inimitability topography, exploitation of “mountain wine” 1007 concept Grape varieties adaptation capabilities Path dependence, long term investments in physical and personnel research structure Increasing technology incorporation, selective Path dependence, long term investments in technification of production without losing technical schools and research institutes human “touch” in wine making Small family-owned wineries with their own Path dependence, long term investments in “family oenologists” technical schools and research institutes, imperfect mobility Potential for achieving “controlled origin”, Complexity, specialisation, adaptation, wine authenticity and uniqueness inimitability, immobility Collective efficiency, 400 wineries Complexity, co-specialisation, path dependence, information asymmetries, imperfect mobility Table II. Long term contracts between wineries and Co-specialization Strategic resources and grape-growers capabilities and their Distinct climatic characteristics Specificity, inimitability sustainability An important result from the analysis is that the strategic resources and capabilities of the southern Brazil wine cluster have their own exclusive and idiosyncratic characteristics that should be valued. Associated with the tourism potential, the proximity of the capital city of Porto Alegre and the good road infrastructure are at the origin of unique conditions for sustained competitiveness. Finally, it is necessary to note that these results represent the view of eight experts and could possibly be enriched by a higher number of participants. However, since the process of reaching consensus within a group is very time consuming, this possible enrichment could be very costly. Conclusion Every company can be seen as a unique collection of resources and capabilities, whose form of combination in productive use is dependent upon management’s perceptions. Each one acts in the market limited by these perceptions and, sometimes, does not explore its full potentialities. Enlarging these perceptions is a major challenge, both for the companies and for the strategists that are responsible for the formulation of industrial and regional development policies. This study was conducted having as its central purpose the identification of the strategic resources and capabilities of a cluster and their sustainability, combining the resource-based perspective with cognitive mapping techniques
  • 15. IJOPM as a basis for strategy formulation. Although RBV constructs are still in 23,9 consolidation, Peteraf’s (1993) framework has proven to be very useful and insightful for pursued objective. The approach used here also contributed to improving the understanding of the linkages between firm-level resources, as highlighted by the RBV approach, and the collective, systemic, and sector-wide resources of the industrial 1008 organisation tradition. Since firms are influenced by both types of resources, industrial clusters’ as well as firms’ strategies must be formulated not only from the point of view of individual resources and capabilities, but also taking into account the collective and shared resources and capabilities of the whole cluster. How to manage and co-ordinate this process in an integrated way remains a challenge for practitioners and constitutes an important area for empirical research. It also became clear in this study that history matters and the cumulative development and upgrading of resources and capabilities can fundamentally shape the future strategic options of a cluster. References ¸˜ ´ Aguiar, F.B. (1999a), “A internacionalizacao do mercado vinıcola”, Annals of the IX Congresso Brasileiro de Viticultura e Enologia, pp. 25-30. Aguiar, F.B. (1999b), “Introductory note”, in Falcade, I. and Mandelli, F. (Eds), Vale dos Vinhedos, ¸˜ ´ ˜ Caracterizacao Geografica da Regiao, EDUCS, Caxias do Sul. Amit, R. and Shoemaker, P.J. (1993), “Strategic assets and organisational rent”, Strategic Management Journal, Vol. 14 No. 1, pp. 33-46. Andrews, K.R. (1971), The Concept of Corporate Strategy, Irwin, Homewood, IL. Ansoff, H.I. (1968), Corporate Strategy, McGraw-Hill, New York, NY. Barney, J.B. (1986), “Strategic factor markets: expectations, luck and business strategy”, Management Science, Vol. 42 No. 9, pp. 1231-41. Barney, J.B. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17 No. 1, pp. 99-120. Barney, J.B. (2001), “Resource-based theories of competitive advantage: a ten-year retrospective on the resource-based view”, Journal of Management, Vol. 27 No. 6, pp. 643-50. Bernardo, A. and Chowdhry, B. (2002), “Resources, real options and corporate strategy”, Journal of Financial Economics, Vol. 63 No. 2, pp. 211-34. Black, J.A. and Boal, K.B. (1994), “Strategic resources: traits, configurations and paths to sustainable competitive advantage”, Strategic Management Journal, Vol. 15, Summer, pp. 131-48. Calori, R., Johnson, G. and Sarnin, P. (1994), “CEO’S cognitive maps and the scope of the organization”, Strategic Management Journal, Vol. 15, pp. 437-57. Castanias, R. and Helfat, C. (2001), “The managerial rents model: theory and empirical analysis”, Journal of Management, Vol. 6, pp. 661-78. Collis, D.J. (1994), “Research note: how valuable are organisational capabilities?”, Strategic Management Journal, Vol. 15, Winter, pp. 143-52.
  • 16. Dierickx, I. and Cool, K. (1989), “Asset stock accumulation and sustainability of competitive Industrial cluster advantage”, Management Science, Vol. 35 No. 12, pp. pp1504-14. ¸˜ ´ ˜ Falcade, I. and Mandelli, F. (Eds) (1999), Vale dos Vinhedos, Caracterizacao Geografica da Regiao, strategic EDUCS, Caxias do Sul. analysis Foss, N. (1997), Resources and Strategy: A Reader, Oxford University Press, Oxford. Godfrey, P.C. and Hill, C. (1995), “The problem of unobservables in strategic management research”, Strategic Management Journal, Vol. 16, pp. 519-33. 1009 Grant, R.M. (1991), “The resource-based theory of competitive advantage: implications for strategy formulation”, California Management Review, Vol. 33 No. 3, pp. 114-35. Howard, R. (1989), “Knowledge maps”, Management Science, Vol. 35 No. 8, pp. 903-22. Lockett, A. and Thompson, S. (2001), “The resource-based view and economics”, Journal of Management, Vol. 27 No. 6, pp. 723-54. Mahoney, J. (2001), “A resource-based theory of sustainable rents”, Journal of Management, Vol. 27 No. 6, pp. 651-60. Mahoney, J. and Pandian, R. (1992), “The resource-based view within the conversation of strategic management”, Strategic Management Journal, Vol. 13 No. 5, pp. 363-80. ´ ´ Moraes, R. (1993), Analise de Conteudo, PUCRS, Porto Alegre. Penrose, E.T. (1959), The Theory of the Growth of the Firm, Wiley, New York, NY. Peteraf, M.A. (1993), “The cornerstones of competitive advantage: a resource based view”, Strategic Management Journal, Vol. 14 No. 3, pp. 179-91. Porter, M.E. (1980), Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press, New York, NY. Porter, M.E. (1985), Competitive Advantage, The Free Press, New York, NY. Porter, M.E. (1990), Competitive Advantage of Nations, The Free Press, New York, NY. Reed, R. and DeFillippi, R.J. (1990), “Causal ambiguity, barriers to imitation and sustainable competitive advantage”, Academy of Management Review, Vol. 15 No. 1, pp. 88-102. Rumelt, R. (1991), “How much does industry matter?”, Strategic Management Journal, Vol. 12, pp. 167-85. Rumelt, R.P. (1984), “Toward a strategic theory of the firm”, in Lamb, R. (Ed.), Competitive Strategic Management, Prentice-Hall, Englewood Cliffs, NJ, pp. 556-70. Selznick, P. (1957), Leadership in Administration: A Sociological Perspective, Harper & Row, New York, NY. Teece, D.J. (1986), “Firm boundaries, technological innnovation and strategic management”, in Thomas, L.G. III (Ed.), The Economics of Strategic Planning, Lexington Books, Lexington, MA, pp. 87-199. Teece, D.J., Pisano, G. and Shuen, A. (1997), “Dynamic capabilities and strategic management”, Strategic Management Journal, Vol. 18 No. 7, pp. 509-33. ´ ˜ ´ Tonietto, J. and Carbonneau, A. (1999), “Analise mundial do clima das regioes vitıcolas e de sua ˆ influencia sobre a tipicidade dos vinhos”, Annals of the IX Congresso Brasileiro de Viticultura e Enologia, Bento Goncalves, pp. 75-90. ¸ Wernerfelt, B. (1984), “A resource-based view of the firm”, Strategic Management Journal, Vol. 5 No. 2, pp. 171-80. Zahra, S.A. and Das, S.R. (1993), “Building competitive advantage on manufacturing resources”, Long Range Planning, Vol. 26 No. 2, pp. 90-100.