The Relationship between Organizational Resources and Systems: An Empirical Research

Abstract

Organizational resources and systems have been conceptualized as to be able to significantly predict the level of competitive advantage. This research empirically examined the importance and emphasis placed on the relationship between organizational resources and systems, especially towards the attainment of firms’ competitive advantage. This research was conducted among manufacturers listed in the Federation of Malaysian Manufacturers Directory 2008. A cross-sectional study using structured questionnaire was used to obtain responses from the manufacturers. From the subsequent actual survey, 127 respondents replied and completed the questionnaire (12.7% response rate). The large correlation (r = 0.72) implies a strong positive relationship between the organizational resources and systems. As for the variance shared between these two variables, the coefficient of determination (r² = 0.52) suggests that organizational resources help to account for nearly 52% of the variance in systems, and vice versa. The theoretical implication of this study is that it supports and extends the RBV of competitive advantage by illustrating the need for systematic management of resources towards attaining competitive advantage.