Examining the Contribution of Valuable and Rare Resources and Capabilities to Performance of Micro Enterprises

Daisy Lily Moscare-Balanquit

Abstract


This article examined the contribution of resources and capabilities to the competitiveness and performance of micro enterprises within the context of resource-based view. Cross-sectional survey design was employed. The data came from 183 registered micro enterprises in Catarman. The result showed that the value of resource-capability combinations is inversely related to competitive advantage, while the rareness of resource-capability combinations is positively related. The direct and indirect effects of competitive advantage between value and rareness of resource-capability combinations and performance were established. The moderating effect of business age between competitive advantage and performance was determined. This study added support to the application of resource-based view to micro enterprises in rural areas in a developing economy and unravel important implications for micro enterprises in Catarman.

Keywords: micro enterprise; resources; capabilities; competitive advantage; performance

JEL Classifications: M1, M2

DOI: https://doi.org/10.32479/irmm.11285


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