Driving a resource orientation: reviewing the role of resource and capability characteristics

Purpose – This study seeks to introduce the role of resource and capability characteristics as drivers of a resource orientation (RO) and to examine empirically these relationships in different market conditions. Design/methodology/approach – This study was conducted using a nation‐wide survey distributed to key informants of multiple business units. Multiple regression was used to assess the relationships. RO is used as a proxy for the implementation of the resource‐based view (RBV). The RO is also tested against performance outcomes to examine the robustness of the model that has been examined. Findings – Findings showed significant relationships between resource and capability characteristics and RO. These relationships were shown to be robust across various market conditions. RO also depicted significant, positive relationships with all four performance indicators that were assessed. Industry conditions were found to strengthen some of these relationships. Research limitations/implications – The results are limited to cross‐sectional data that prevent the determination of causality. In addition, it is a nation‐specific study that may not be generalisable to alternative settings. This presents an opportunity for further research to replicate this study in other nations and/or industries. The research presents implications for further theory development and suggests that management can focus on developing unique resource bundles to improve company performance; however, they will need to be attentive to the competitive environment in which they compete. Originality/value – This is the first study that empirically evaluates drivers of an RO and further tests the scale that was applied by Paladino. Additionally, this study illustrates that the RBV can be empirically tested through the use of an RO to have a demonstrable impact on financial and non‐financial elements of performance.