Strategic Responses to New Technologies and Their Impact on Firm Performance

By Ruby Po Wan Lee, Rajdeep Grewal. Journal of Marketing, 2004

342 citations recorded by the source corpus.

Modern corporations must adopt and assimilate new technologies to build and sustain competitive advantage. The authors develop a theoretical framework to understand the relationships among (1) strategic responses to new technologies, (2) organizational resources, and (3) firm performance. Specifically, they theorize that a strategic response can be categorized according to the dimensions of magnitude, domain, and speed, and they conceptualize organizational resources as tangible and intangible. The authors operationalize this framework for the adoption of the Internet by traditional store-based retailers, for which they posit strategic responses as the speed of (1) adopting the Internet as a communications channel, (2) adopting the Internet as a sales channel, and (3) forming e-alliances. In addition, they use resource slack to represent organizational resources. Results from nine years (1992–2000) of data on 106 firms establish the influence of strategic responses on firm performance (i.e., market valuation of the firm, operationalized as Tobin's q). Specifically, the results show that both the adoption of the Internet as a communications channel and e-alliance formation positively influence firm performance. The positive effect of communications channel adoption on firm performance is enhanced further by the use of slack resources. Post hoc analysis reveals that the adoption of the Internet as a sales channel seems to matter only to firms that have preexisting catalog operations.

Subfields: Strategy and Management

View Paper: https://www.semanticscholar.org/paper/57569974e385e5f626362f670d3b36695b97ae31

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Citations in the corpus

Can doing good lead to doing poorly? Firm value implications of CSR in the face of CSI (2017, result): “7 The remaining effects are in line with prior research (e.g., Lee and Grewal 2004; Rao et al. 2004), bolstering the validity of the model.”
Building innovation capability: The role of top management innovativeness and relative-exploration orientation (2017, neutral): “Firm resources were operationalized as the ratio of working capital plus intangible assets to total assets (Lee & Grewal, 2004).”
Corporate Social Responsibility, Customer Satisfaction, and Market Value (2006, methodology): “Following the work of Cho and Pucik (2005), we used the ratings of CSR for each firm in 2001, 2002, and 2003 (but published in 2002, 2003, and 2004, due to a one-year lag in print) as three separate indicators of the latent construct of CSR.2 This approach of using measurement items with different…”
A bibliometric review of the innovation adoption literature (2018, background): “37 Resource-Based View (RBV) of organizations and considered the effect of organizational resources, social network ties and learning capabilities on adoption [211-213].”
Big Data consumer analytics and the transformation of marketing (2016, neutral): “RBT suggests that a ﬁ rm's resources, both tangible and intangible, facilitateitsperformanceandcompetitiveadvantagewhentheresource is valuable, rare, imperfectly imitable, and exploitable by the organization (Barney, 1991; Lee & Grewal, 2004).”
Knowledge management and innovation strategy in the Asia Pacific: Toward an institution-based view (2008, neutral): “The task of knowledge management (KM) thus becomes more important than any other managerial tasks and formulating a viable innovation strategy constitutes an integral part of strategic management (Hitt, Keats, & DeMarie, 1998; Lee & Grewal, 2004; Miller, Fern, & Cardinal, 2007).”
Inbound open innovation for enhanced performance: Enablers and opportunities (2013, methodology): “Flexibility is conceptualized from various perspectives in the extant literature (e.g., Johnson, Lee, Saini, & Grohmann, 2003); however, consistent with recent research (e.g., Fang et al., 2008; Lee & Grewal, 2004), here we focus on financial resource slack.”