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canopy strongprocessesstrong research - university of toledo
Strategic Management Journal
Strat. Mgmt. J., 25: 23–37 (2004)
Published online in Wiley InterScience (). DOI: 10.1002/smj.366
CAPABILITIES, BUSINESS PROCESSES,
AND COMPETITIVE ADVANTAGE: CHOOSING
THE DEPENDENT VARIABLE IN EMPIRICAL
TESTS OF THE RESOURCE-BASED VIEW
1 2 2
GAUTAM RAY, JAY B. BARNEY * and WALEED A. MUHANNA
1 Graduate School of Business, University of Texas at Austin, Austin, Texas, U.S.A.
2 Fisher College of Business, The Ohio State University, Columbus, Ohio, U.S.A.
A growing body of empirical literature supports key assertions of the resource-based view.
However, most of this work examines the impact of firm-specific resources on the overall
performance of a firm. In this paper it is argued that, in some circumstances, adopting the
effectiveness of business processes as a dependent variable may be more appropriate than
adopting overall firm performance as a dependent variable. This idea is tested by examining
the determinants of the effectiveness of the customer service business process in a sample of
North American insurance companies. Results are consistent with resource-based expectations,
and they show that distinctive advantages observable at the
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