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On the contingent rent-generating potential of firm-specific managerial experience

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  • Dong, John Qi

Abstract

The resource-based theory suggests that profitable growth of the firm is bound by firm-specific managerial capability, which has to be internally developed via accumulation of firm-specific managerial experience over time. In this study, I investigate the contingency of rent-generating potential of firm-specific managerial experience by focusing on two particular organizational characteristics — slack and uncertainty. I propose that firm-specific managerial experience realizes its rent-generating potential in conjunction with organizational slack, and firm-specific managerial experience has greater rent-generating potential when organizational uncertainty is high. Empirical evidence based on large-scale longitudinal data from 921U.S. manufacturing firms in almost 20years corroborates the theory. Novel implications for the resource-based theory are discussed.

Suggested Citation

  • Dong, John Qi, 2016. "On the contingent rent-generating potential of firm-specific managerial experience," Journal of Business Research, Elsevier, vol. 69(10), pages 4358-4362.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:10:p:4358-4362
    DOI: 10.1016/j.jbusres.2016.04.066
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