Organizational Resources, Industry Velocity, Attention Focus and Firm’s Performance: A Review of Literature
The study addressed the diverse views on the role of organizational resources in firm performance in high velocity industry context. It adopted a multidisciplinary approach to examine the linkage among organizational resources, industry velocity, attention focus and firm performance. It found that resource based advantages are rather transient in highly dynamic environments hence need to constantly adapt the internal factors through firm capabilities. The influence of the external environment on resource application decisions is however partial as only a portion of the environment is actually perceived and interpreted by strategic decision makers through the selective cognitive process of attention focus. These findings have implications for a better understanding of the constructs and how they are related as contained in the proposed theoretical framework. The paper proposes that future studies be based on wider multidisciplinary approaches and the proposed theoretical framework be applied in guiding empirical research in high velocity industries.