This paper argues that the gap between the theoretical utility and the practical utility of the resource-based view (RBV) may be narrowed by operationalizing the theory more consistently with Penrose's original framework. The operationalization proposed here is a twofold approach. First, the RBV may be enhanced by the explicit recognition of Penrose's two classes of resources, namely, administrative resources and productive resources. This distinction suggests a focus on the administrative decisions of managers that lead to economic performance. Second, we argue that the RBV is a theory about extraordinary performers or outliers-not averages. Therefore, the statistical methods used in applying the theory must account for individual firm differences, and not be based on means, which statistically neutralize firm differences. We propose a novel Bayesian hierarchical methodology to examine the relationship between administrative decisions and economic performance over time. We develop and explain a measure of competitive advantage that goes beyond comparisons of economic performance. This Bayesian methodology allows us to make meaningful probability statements about specific, individual firms and the effects of the administrative decisions examined in this study.

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Increasingly often, executives are being called upon to manage organizations through downturns. Of critical importance to the long‐term health of a firm is how its employees are treated during these stressful periods. Human resource strategies must minimize the loss of key personnel needed for organizational survival and turnaround. The purpose of this article is to discuss why key employees leave organizations following a downturn. We propose two reasons: Either employees abandon a sinking ship or upon considering a lack of career opportunities, they take well‐timed exits. Then, by considering individual career issues that arise from an organization downturn, ways to counteract ill‐timed employee exit are identified. These human resource strategies either reduce organizational uncertainty or increase career opportunity.

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Recent discussions of corporate heroes focus on benefits without examining cosfs. Although our perceptions are not entirely negative, we have discovered several reasons to be cautious about corporate heroes. N? present some of the potential problems associated with creating heroes, and another set of dysfunctions occurring once heroes have been created. Our intention is not to debunk heroes, but to attach a cautionary note to their use in organizations. Wefully expect the natural emergence of heroes in many orgamzations, but also propose that managers can accomplish as much, and offen less hazardously, by working on perspective, praise, and trying to influence daily practice in their organizations. This approach is bufh more explicit and direct in infusing organizations with the same benefits of motivation and meaning derivedfrom having heroes. Moreouer, it can lay a foundation of values that ultimately determines what kinds of individuals emerge as heroes.While we were reviewing conclusions from our diagnosis of Data-Disk Corporation with its president, we mentioned that there did not appear to be any company heroes. The president was shocked. "Why that's un-American,'' he responded. He believed that if there were no heroes, people in the organization would not be motivated to achieve their potential. He was certain that our diagnosis had simply missed stones about company heroes. The president even told us the story of one engineer who had been personally responsible for saving the company on three separate occasions. He requested that we find out how many people were aware of this engineer's contribution.Following two weeks of very careful interviewing of Data-Disk's engineers, we concluded that no one was aware of the exploits of the engineer whose story the president had told us. Just as we were about to return to the president and share this finding with him, one of us received a phone call from this engineer. He had heard about our interviews from several of his colleagues. He was extremely disturbed about what we were doing. He pleaded, "Please don't make me a hero."

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