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Strategic Management Journal Strat. Mgmt. J., 31: 11641182 (2010) Published online EarlyView in Wiley Online library (wileyonlinelibrary.com) DOI: 10.1002/smj.858 Received 16 September 2008; Final adjustment received 11 March 2010 MANAGERIAL DECISION making AND FIRM PERFORMANCE UNDER A RESOURCE-BASED PARADIGM MARTIN H. KUNC1 * and JOHN D. W. MORECROFT2 1 2 Warwick Business School, Coventry, U.K. London Business School, London, U.K A framework is presented that connects managerial decision making to mental imagery building and ?rm performance. The framework takes a behavioral view of decision making and distinguishes two perspicuous decision-making processes. First there is the creative conceptualisation of new resource con?gurations that are intended to deliver competitive advantage. thence there is the painstaking development of resources required to implement strategy. We manage that heterogeneity in the resources of rival ?rms arises from the interplay of these two processes: resource conceptualization and resource development. Heterogeneity spawns performance differences that can be explained ex ante from characteristics of managerial decision-making processes.

We illustrate the approach in a simulated decision-making environment representing a highly competitive and dynamically complex industry. Results from repeated simulation experiments conducted with executive and MBA students show bulky differences in performance among ?rms, even when they started with identical resource positions. In a departure from traditional resourcebased literature, we explain how these differences stem from road counselling dependent accumulation of resources and spontaneous variety in the way rivals conceptualize resources. Copyright ? 2010 John Wiley & Sons, Ltd. INTRODUCTION The resource-based literature offers a come up of explanations about the conditions under which competitive advantage arisesâ€"such as unique resources or the capabilities to build them. But these explanations do not... If you essential to get a full essay, order it on our website: Orderessay

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