Operationalizing and Measuring Capabilities: An Application to High-Technology Markets
35 Pages Posted: 4 Feb 2001
Abstract
OPERATIONALIZING AND MEASURING CAPABILITIES: AN APPLICATION TO HIGH-TECHNOLOGY MARKETS ABSTRACT This paper attempts to operationalize and measure firm-specific capabilities using an extant conceptualization in the resource-based view (RBV) literature. Capabilities are conceived as the efficiency with a firm employs a given set of resources (inputs) at its disposal to achieve certain objectives (outputs). This view is operationalized using an input-output approach. We then proceed to suggest an estimation methodology, namely the Stochastic Frontier Estimation (SFE) technique that allows us to infer firm capabilities from archival data. This operationalization and estimation technique is illustrated with an empirical application in the semiconductor industry. Our findings underscore the heterogeneity in capabilities across firms in this industry, as well as the significant complementarity effects that exist between a firm's R&D and marketing resources.
JEL Classification: D24
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Time-Varying Conditional Covariances in Tests of Asset Pricing Models
-
By David M. Cutler, James M. Poterba, ...
-
Asymmetric Volatility and Risk in Equity Markets
By Geert Bekaert and Guojun Wu
-
Why Do Security Prices Change? A Transaction-Level Analysis of Nyse Stocks
By Ananth Madhavan and Mark Roomans
-
By Martin Eichenbaum, Lars Peter Hansen, ...
-
Heteroskedasticity in Stock Returns
By G. William Schwert and Paul J. Seguin
-
Estimating Models with Intertemporal Substitution Using Aggregate Time Series Data