Resource portfolio management: bundling process

Abstract

Managers within firms seek to align their portfolio of capabilities to best respond to their competitive environment. Processes used by firms to acquire resources, bundle those resources into capabilities, and then leverage those capabilities to obtain competitive advantage are of interest to scholars and practitioners alike. In this study I explore the bundling process and how firms create advantage from its use in different environmental conditions. Using policy capturing survey techniques analyzed with hierarchial linear modeling while manipulating environmental contexts of dynamism, munificence, and punctuated threats, I observe how firms vary their resource bundling processes to create advantage and improve performance. For each combination of environmental condition, hypotheses are presented and tested with respect to firm response. Due to a lack of differentiation between the three bundling sub-processes, several proposed hypotheses were not testable and thus, unsupported. Current theory details three bundling sub-processes; however, I demonstrate evidence that fewer or greater numbers of sub-processes may be required to capture the bundling process. Other evidence suggests that firms do alter bundling sub-processes in response to changing conditions of munificence, but fail to do so during punctuated events.