Resource and market based determinants of performance in the U.S. banking industry
Article Abstract:
The theory of the resource-based view (RBV) of the firm holds that the competitive advantage of a firm depends on bundles of resources and not on the product market combinations selected for their distribution. This perspective requires assessment of the firm as a unique bundle of tangible and intangible resources and not in terms of its activities in the product market. This framework transfers the focus from product-market competitive barriers towards factor-market barriers to resource flows. An empirical testing of the RBV model of strategic groups in the banking industry indicates that it is more able to encapsulate intra-industry performance heterogeneity than the traditional market-based model. Implications are discussed.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1996
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Bank performance and executive compensation: a managerial discretion perspective
Article Abstract:
A study was conducted to examine the impact of the degree of an executive's managerial discretion on the relationship between bank performance and executive compensation. This research sampled the largest 300 commercial banks in the US between 1984 and 1987 and analyzed bank executive compensation, bank performance, bank size and executive managerial discretion. The last variable was measured by the bank's strategic domain and its regulatory environment. Findings revealed that executive compensation was more related to bank performance in an environment marked by high managerial discretion than in an environment with low managerial discretion. Implications of these findings are discussed.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1997
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