• The ambidextrous interaction of RBV-KBV and Regional Social Capital and their impact on SME management

      Kraus, Patrick; Stokes, Peter; Tarba, Shlomo Y.; Rodgers, Peter; Dekel-Dachs, Ofer; Britzelmaier, Bernd; Moore, Neil; Pforzheim University; De Montfort University; University of Birmingham; University of Southampton; Loughborough University; University of Chester (Elsevier, 2022-01-18)
      This paper argues that regional culture, encompassed within intricate forms of social capital, is inextricably linked to the resource-based view (RBV) concept - focused on inimitable resources possessed by a firm. These resources encompass knowledge (pertaining to the knowledge-based view (KBV)) – including the cultural knowledge and understandings that reside in a given region - as a key resource that is available to a firm, creating resources in order to render it competitive. The paper conceptually develops RBV-KBV within an organizational ambidexterity framework and highlights how regional context, RBV-KBV and firm dynamics inter-operate. This responds to an important gap in the literature, underscoring the vital role of regional contextualised RBV-KBV. Rather than viewing these contexts as taken-as-given artefacts it is important to see them as culturally, socially, and historically constructed and rooted phenomena. Drawing empirically on a series of semi-structured interviews conducted with German manufacturing SMEs in the Baden-Württemberg (BW) region (SW Germany), this paper provides novel insights into how SMEs manage resources and regional social capital in order to expand judiciously into international (emerging) markets. In so doing, the paper presents a novel organizational ambidextrous conceptual framework showing how companies move from traditional exploitative and conservative regional cultural RBV-KBV bases to more explorative and innovative internationalising ones. Within this, the paper also contributes fresh insights into the explorative ‘hidden champions’ phenomenon by showing how the latent BW conservative RBV-KBV and its regional social capital-informed exploitative postures act as persistent moderating drivers of explorative internationalisation.