A composition-based view of firm growth

Yadong Luo, John Child

Research output: Contribution to journalArticle

35 Citations (Scopus)

Abstract

This article presents a composition-based view (CBV), which explicates the growth of enterprises that compete and develop without the benefit of resource advantages, core technology, or market power. The CBV emphasizes how ordinary firms with ordinary resources may generate extraordinary results through their creative use of open resources and unique integrating capabilities, resulting in an enhanced speed and a price-value ratio that are well suited to large numbers of mass market consumers. In addition to defining the CBV, this article explains the key elements of composition-based strategy and the distinctive processes of composition. Although CBV logic can apply to any firm endeavoring to catch up with better endowed competitors, it aligns well with the case of emerging economy enterprises (EEEs), and Chinese ones in particular. Nonetheless, the advantages of adopting composition-based strategy are temporary in nature and will decline over time, especially after the firm passes the imitative or catch-up stage. We also propose an agenda for future research.

Original languageEnglish (US)
Pages (from-to)379-411
Number of pages33
JournalManagement and Organization Review
Volume11
Issue number3
DOIs
StatePublished - Jul 15 2015

Fingerprint

Firm growth
Resources
Catch-up
Agenda
Logic
Market power
Competitors
Emerging economies
Consumer markets

Keywords

  • Composition-based view
  • Emerging economy enterprises
  • Firm growth

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

Cite this

A composition-based view of firm growth. / Luo, Yadong; Child, John.

In: Management and Organization Review, Vol. 11, No. 3, 15.07.2015, p. 379-411.

Research output: Contribution to journalArticle

Luo, Yadong ; Child, John. / A composition-based view of firm growth. In: Management and Organization Review. 2015 ; Vol. 11, No. 3. pp. 379-411.
@article{d5abc3a64d66449b94c32e2d6dcc4f85,
title = "A composition-based view of firm growth",
abstract = "This article presents a composition-based view (CBV), which explicates the growth of enterprises that compete and develop without the benefit of resource advantages, core technology, or market power. The CBV emphasizes how ordinary firms with ordinary resources may generate extraordinary results through their creative use of open resources and unique integrating capabilities, resulting in an enhanced speed and a price-value ratio that are well suited to large numbers of mass market consumers. In addition to defining the CBV, this article explains the key elements of composition-based strategy and the distinctive processes of composition. Although CBV logic can apply to any firm endeavoring to catch up with better endowed competitors, it aligns well with the case of emerging economy enterprises (EEEs), and Chinese ones in particular. Nonetheless, the advantages of adopting composition-based strategy are temporary in nature and will decline over time, especially after the firm passes the imitative or catch-up stage. We also propose an agenda for future research.",
keywords = "Composition-based view, Emerging economy enterprises, Firm growth",
author = "Yadong Luo and John Child",
year = "2015",
month = "7",
day = "15",
doi = "10.1017/mor.2015.29",
language = "English (US)",
volume = "11",
pages = "379--411",
journal = "Management and Organization Review",
issn = "1740-8776",
publisher = "Wiley-Blackwell",
number = "3",

}

TY - JOUR

T1 - A composition-based view of firm growth

AU - Luo, Yadong

AU - Child, John

PY - 2015/7/15

Y1 - 2015/7/15

N2 - This article presents a composition-based view (CBV), which explicates the growth of enterprises that compete and develop without the benefit of resource advantages, core technology, or market power. The CBV emphasizes how ordinary firms with ordinary resources may generate extraordinary results through their creative use of open resources and unique integrating capabilities, resulting in an enhanced speed and a price-value ratio that are well suited to large numbers of mass market consumers. In addition to defining the CBV, this article explains the key elements of composition-based strategy and the distinctive processes of composition. Although CBV logic can apply to any firm endeavoring to catch up with better endowed competitors, it aligns well with the case of emerging economy enterprises (EEEs), and Chinese ones in particular. Nonetheless, the advantages of adopting composition-based strategy are temporary in nature and will decline over time, especially after the firm passes the imitative or catch-up stage. We also propose an agenda for future research.

AB - This article presents a composition-based view (CBV), which explicates the growth of enterprises that compete and develop without the benefit of resource advantages, core technology, or market power. The CBV emphasizes how ordinary firms with ordinary resources may generate extraordinary results through their creative use of open resources and unique integrating capabilities, resulting in an enhanced speed and a price-value ratio that are well suited to large numbers of mass market consumers. In addition to defining the CBV, this article explains the key elements of composition-based strategy and the distinctive processes of composition. Although CBV logic can apply to any firm endeavoring to catch up with better endowed competitors, it aligns well with the case of emerging economy enterprises (EEEs), and Chinese ones in particular. Nonetheless, the advantages of adopting composition-based strategy are temporary in nature and will decline over time, especially after the firm passes the imitative or catch-up stage. We also propose an agenda for future research.

KW - Composition-based view

KW - Emerging economy enterprises

KW - Firm growth

UR - http://www.scopus.com/inward/record.url?scp=84941770424&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84941770424&partnerID=8YFLogxK

U2 - 10.1017/mor.2015.29

DO - 10.1017/mor.2015.29

M3 - Article

AN - SCOPUS:84941770424

VL - 11

SP - 379

EP - 411

JO - Management and Organization Review

JF - Management and Organization Review

SN - 1740-8776

IS - 3

ER -