Common resources-resource bundling-performance : the mediating role of resource bundling in container terminal operations

Purpose: Building on the resource-based view (RBV) perspective of common resources, the objective of this paper is to empirically examine the impact of container terminals' common resources (i.e. government support and terminal resources) on resource bundling strategies and subsequent effect on service performance. Design/methodology/approach: Using cross-sectional survey data collected from a sample of 216 respondents of Indonesia's container terminals, this study used structural equation modeling (SEM) to test the hypothesised relationships between common resources, resource bundling strategies and service performance. Findings: Government support and terminal resources (personnel and physical), both as sources of common resources when bundled effectively, are found to have positive and significant effect on terminal service performance. The resource bundling strategies fully mediate the relationship between container terminals' common resources and service performance. Practical implications: The study introduces the notion of common resources to container terminal managers in contrast to the valuable, rare, inimitable and non-substitutable (VRIN) types. It is recommended that appropriate resource bundling strategies can turn the common resources into VRIN resources that can be used to obtain desired service performance. Originality/value: RBV theorists suggest that resources that are VRIN types can be the source of competitive advantage. However, the resources can also be common, basic and valuable, a fact that is rarely investigated in the literature. These common resources can be bundled judiciously with other pre-existing resources to create VRIN resources. This research enriches the RBV by empirically validating that VRIN resources are embedded within various common resources bundling strategies.