What is it about?

Simply put, firm capabilities have both an activity portion (best articulated by by Porter's activity-based view) and a resource portion (best articulated by Barney's resources-based view). Both are needed to understand and apply firm-level capabilities.

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Why is it important?

We need to understand firm-level capabilities if we are to unpack and exploit firm-level advantages

Perspectives

This article is part of a stream of work that Nicolai and I have done exploring the impact of Professor Porter's activity-based view (commonly known as value chain analysis) and relatedly value creation logics. Other articles in this stream of research are: 1) Othman, R.*, N.T. Sheehan. 2011. Value Creation Logics and Resource Management: A Review. Journal of Strategy and Management, 4(1), pp. 5-24. 2) Sheehan, N.T.*, C.B. Stabell. 2010. Reputation as a driver of activity level analysis: Reputation and competitive advantage in knowledge intensive firms. Corporate Reputation Review, 13(3), pp. 198-208. 3) Sheehan, N.T.*, E. Gamble. 2010. JetFighter: An Experiential Value Chain Exercise. Journal of Management Education, 34(2), pp. 224-248. 4) Sheehan, N.T.*, N.J. Foss. 2009. Exploring the Roots the Porter’s Activity-Based View. Journal of Strategy and Management, 2(3), pp. 240-260. 5) Sheehan, N.T.*, N.J. Foss. 2007. Enhancing the Prescriptiveness of the Resource-Based View Through Porterian Activity Analysis. Management Decision, 45(3), pp. 450-461. 6) Sheehan, N.T.*, C.B. Stabell. 2007. Discovering New Business Models for Knowledge Intensive Firms. Strategy & Leadership, 35(2), pp. 22-29. 7) Sheehan, N.T.*, C.B. Stabell. 2006. Reputation and Value Creation in Search Shops. Service Industries Journal, 26(6), pp. 597-613. 8) Sheehan, N.T.*, G. Vaidyanathan, S. Kalagnanam. 2005. Value Creation Logics and the Choice of Management Control Systems. Qualitative Research in Accounting and Management, 2(1), pp. 1-28.

Dr Norman T Sheehan
University of Saskatchewan

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This page is a summary of: Using Porterian activity analysis to understand organizational capabilities, Journal of General Management, April 2017, SAGE Publications,
DOI: 10.1177/0306307017690518.
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