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Making the most of what you have: managerial ability as a source of resource value creation

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  • Tim R. Holcomb
  • R. Michael Holmes Jr.
  • Brian L. Connelly

Abstract

The current study investigates a central premise of the resource‐based view of the firm—that managers are a potential source of value creation for the firm. Using data from professional sports teams, we test theory regarding the effects of managerial ability, human resource stocks, and managers' actions on resource value creation. While results indicate managerial ability affects resource productivity, this effect is less pronounced with increases in the quality of firm resources. Further, we investigate the extent to which managerial actions that synchronize resource bundles account for the influence of managerial ability and resource context on a firm's performance advantage. These results contribute to our understanding of resource management and provide empirical evidence for the importance of managerial ability in the resource‐based view. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Tim R. Holcomb & R. Michael Holmes Jr. & Brian L. Connelly, 2009. "Making the most of what you have: managerial ability as a source of resource value creation," Strategic Management Journal, Wiley Blackwell, vol. 30(5), pages 457-485, May.
    • Handle: RePEc:bla:stratm:v:30:y:2009:i:5:p:457-485
    DOI: 10.1002/smj.747
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