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Sirmon, Hitt & Ireland - Managing firm resources in dynamic environments to create value: looking inside the blackbox

5 important questions on Sirmon, Hitt & Ireland - Managing firm resources in dynamic environments to create value: looking inside the blackbox

According to S,H&I resource portfolio (structuring resources) is the sum of all firm-controlled resources. Explain this in 3 points:

1 Acquiring: purchasing resources from strategic factor markets. prices (high environmental uncertainty: acquire resources that allow preferential access to a greater variety of opportunities increases a firm's potential value creation.
2 Accumulating: internal development of resources, which requires learning. High environmental uncertainty: accumulating resources that allow preferential access to a greater variety of opportunities, this increases a firm's potential value creation.
3 Divesting: shedding of firm-controlled (less-valued) resources (afstoten). High uncertainty: divesting resources can harm a firm's value creation potential. Cautious with divesting.

Bundling resources is the process by which capabilities are formed. Resources within the portfolio are bundled to create capabilities. With each capability being a unique combination of resources allowing the firm to take specific actions that are intended to create value for customers. Which 3 actions can they take (S,H&I):

1 Stabilizing: minor incremental improvements in existing capabilities. Creating value under low environmental uncertainty and high environmental munificence (vrijgevigheid).
2 Enriching: extend/elaborate current capability: create new value or maintain current value created in high uncertain environments.
3 Pioneering: integration of completely new resources or recombination of existing resources. The need of new capabilities is more pronounced in uncertain environments, to exploit opportunities that fleet in dynamic environments.

It invovles processes to apply a firm's capabilities to create value for customers. Which 3 (S,H&I)?

1 Mobilizing: identify the capabilities needed, design the capability configurations necessary to exploit opportunities in the market, and gain a competitive advantage with the design of the leveraging strategy (see next question) 
2 Coordinating: integrated mobilized capabilties is an effective yet efficient manner to create capability configurations. Implementing a leveraging strategy, share knowledge to integrate the capabilities into effective configurations.
3 Deploying: physically using capability configurations to support the chosen leveraging strategy. 
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Name the 3 leveraging strategies (S,H&I) that are needed to create value:

1 Resource advantage strategy: leverage capability configurations that provide a distinctive competence.
2 Exploiting market opportunities: analysis of external environment to identify opportunities
3 Creating entrepreneurial opportunities: developing capability configurations to produce new goods/services that require new markets.

What should you do according to S,H&I in high/extreme environmental uncertainty regarding the leveraging process? (3)

-High uncertainty: resource advtange leveraging strategy creates value in the short term. Learning is therefore critical.
- High uncertainty: market opportunity leveraging strategy can produce a temporary competitive advantage , but not with extreem uncertainty.
- Extreem uncertainty: entrepreneurial strategy will likely be required to create value.

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The question on the page originate from the summary of the following study material:

Designing effective organizations : how to create structured networks | 9780787960643 | Michael Goold, et al

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