Read the full-text of this article for free

Title: Impact of Firm Performance on Changes in Strategic Resource Allocation Decisions

Authors: Hao Ma; Ranjan Karri

Addresses: Author address listing can be found in the "About the Authors" section at the end of the article.

Abstract: We tested the effect of prior firm performance on changes in strategic resource allocation decisions under the environmental conditions of an economic recession. Results from a study of commercial banks suggest that the effect of firm performance on changes in resource allocation in response to environmental change is curvilinear and nonmonotonic. Firms with middlelevel performance, however, tend to respond to changes in the environment with changes in strategic resource allocations, while both poor-performing firms and high performing firms demonstrate little such changes in response to environmental change.

Keywords: Firm performance; strategic resource allocation; environmental change; economic recession; commercial banks.

DOI: 10.1504/JBM.2009.141176

Journal of Business and Management, 2009 Vol.15 No.2, pp.171 - 185

Published online: 05 Sep 2024 *