Denrell, Jerker, Fang, Christina and Zhao, Zhenyuan (2013) Inferring Superior Capabilities from Sustained Superior Performance: A Bayesian Analysis. Strategic Management Journal, 34 (2). pp. 182-196.
To what extent can one infer that superior capabilities are driving sustained superior performance? Modeling performance as some combination of differences in capabilities and processes of cumulative advantage, we argue that a Bayesian framework in which decision makers take into account the differences in cumulative advantage provides for a correct inference. We show, using both simulated and real performance data, that the Bayesian method gives rise to estimates relevant for the inference problem. The estimates also illustrate why a firm with superior performance during a longer period can be less likely to possess superior capabilities than a firm with superior performance during a shorter period. Our work has implications for the origins of competitive advantages and for organization learning in strategy research.
|Keywords:||Superior Performance, Competitive Advantage, RBV, Bayesian Analysis|
|Subject(s):||Strategy; Entrepreneurship & Global business|
|Centre:||Faculty of Strategy, Entrepreneurship and International Business|
|Date Deposited:||28 Nov 2011 14:53|
|Last Modified:||23 Oct 2015 14:06|
Actions (login required)