This paper extends the resource-based view of the firm to a less developed country situation by challenging three boundary conditions associated with the theory: first, the theory assumes attractive local markets; second, the theory applies to firms in relatively stable environments; third, the theory assumes that the manager’s influence on creating sustained advantage is limited. The El Norte case illustrates the ability of local managers to shape their external environment to pioneer an information industry where no industry existed and to do so under highly turbulent conditions. The findings bring forward the power of political connections, strategic foresight, and flexibility as key organizational competencies in an emerging market.
Sirkka L. Jarvenpaa, Dorothy E. Leidner