Assessing the Resource Base of Japanese and U.S. Auto Producers: A Stochastic Frontier Production Function Approach

46 Pages Posted: 25 Aug 2007

See all articles by Marvin B. Lieberman

Marvin B. Lieberman

UCLA Anderson School of Management

Rajeev Dhawan

Georgia State University - Department of Management

Date Written: February 16, 2005

Abstract

The "resource-based view of the firm" has become an important conceptual framework in strategic management but has been widely criticized for lack of an empirical base. To address this deficit, we utilize a new method or identifying inter-firm differences in efficiency within the context of stochastic frontier production functions. Using data on Japanese and U.S. automobile manufacturers, we develop measures of resources and capabilities and test for linkages with firm performance. The results show the influence of manufacturing proficiency and scale economies at the firm and plant level. We apply the parameter estimates to account for Toyota's superior efficiency relative to other producers.

Keywords: resource-based view, stochastic frontier, production function, automotive

JEL Classification: L23, L10, L21

Suggested Citation

Lieberman, Marvin and Dhawan, Rajeev, Assessing the Resource Base of Japanese and U.S. Auto Producers: A Stochastic Frontier Production Function Approach (February 16, 2005). Available at SSRN: https://ssrn.com/abstract=1002956 or http://dx.doi.org/10.2139/ssrn.1002956

Marvin Lieberman (Contact Author)

UCLA Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

Rajeev Dhawan

Georgia State University - Department of Management ( email )

P.O. Box 4050
Atlanta, GA 30303-3083
United States

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