An exploratory analysis of resource utilization across organizational units

This study explores the applicability of the resource‐based view at the organizational unit level by investigating why resource utilization, as measured by efficiency, might differ within a firm. Using a downstream petroleum firm as the context for this study, the data envelopment analysis framework is applied to examine resource input congestion of its DCs (i.e. distribution centers). The study also provides a more granular analysis by decomposing distribution efficiency into managerial, scale, and programmatic efficiency, and examines the impact of corporate‐level decision making by including non‐discretionary variables. The analysis identifies opportunities to improve efficiency at the organizational unit level, using alternative views of the operational problem. The approach also provides practicing managers with an objective means to evaluate performance at the level of the organizational unit. Both the efficiency view and the managerial performance view are discussed simultaneously from a strategic view of firm resources.