Operationalizing and Measuring Capabilities: An Application to High-Technology Markets

35 Pages Posted: 4 Feb 2001

See all articles by Shantanu Dutta

Shantanu Dutta

University of Southern California - Marshall School of Business

Om Narasimhan

University of Minnesota - Twin Cities - Department of Marketing and Logistics Management

Surendra Rajiv

University of Chicago - Marketing Management

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

Dutta, Shantanu and Narasimhan, Om Prakash and Rajiv, Surendra, Operationalizing and Measuring Capabilities: An Application to High-Technology Markets . Available at SSRN: https://ssrn.com/abstract=231908 or http://dx.doi.org/10.2139/ssrn.231908

Shantanu Dutta (Contact Author)

University of Southern California - Marshall School of Business ( email )

Hoffman Hall 701
Los Angeles, CA 90089-1427
United States
213-740-5038 (Phone)
213-740-7828 (Fax)

Om Prakash Narasimhan

University of Minnesota - Twin Cities - Department of Marketing and Logistics Management ( email )

271 19th Avenue South
Room 1235 Mgt. Econ. Building
Minneapolis, MN 55455
United States

Surendra Rajiv

University of Chicago - Marketing Management ( email )

Rosenwald 318B
Chicago, IL 60637
United States
773-702-9896 (Phone)
773-702-0458 (Fax)

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