Paradoxical Resource Trajectories: When Strength Leads to Weakness and Weakness Leads to Strength

Abstract

In proposing two evolutionary trajectories, we demonstrate some paradoxical aspects of strategic resources that contrast with current theorizing. First, we discuss how an abundance of resources can subject an organization to vulnerabilities, taking a firm from competitive strength to potential weakness. Second, we describe an opposite trajectory in which a lack of resources can lead to reactions engendering significant strengths. In both cases, the effects of resource abundance and poverty on executive perceptions and conduct, organizational arrangements, and strategic behavior can play important roles in trajectories of value creation and erosion.

Bold Voices and New Opportunities: An Expanded Research Agenda for the Resource-Based View

“…Miller and Le Breton-Miller (2021) describe two paradoxes involving strategic resources. The first paradox is that possessing “an abundance of resources can subject an organization to vulnerabilities, taking a firm from competitive strength to potential weakness” (Miller & Le Breton-Miller, 2021).…”

“…Miller and Le Breton-Miller (2021) describe two paradoxes involving strategic resources. The first paradox is that possessing “an abundance of resources can subject an organization to vulnerabilities, taking a firm from competitive strength to potential weakness” (Miller & Le Breton-Miller, 2021). One can envision, for example, a powerful and seemingly invincible brand name creating a trap wherein leadership becomes self-serving and overconfident, an unhealthy culture arises, and strategies become stagnant.…”

“…To the extent that community can be a strategic resource, as Gibson et al (2021) suggest, a firm might erode this resource by taking its community for granted and becoming a poor corporate citizen. The second paradox is that “a lack of resources can lead to reactions engendering significant strengths” (Miller & Le Breton-Miller, 2021). Folks of a certain age will remember car rental firm Avis’s advertising motto, “We try harder.” Firms such as Avis lack the market power of larger rivals, but this could steer their leaders to be motivated and humble, their cultures to be highly relational, and their strategies to be creative.…”

“…In making this case, the authors perhaps set the stage for greater synergy between stakeholder theory and the resourcebased view by shedding new light on the value that stakeholders can provide. Miller and Le Breton-Miller (2021) describe two paradoxes involving strategic resources. The first paradox is that possessing "an abundance of resources can subject an organization to vulnerabilities, taking a firm from competitive strength to potential weakness" (Miller & Le Breton-Miller, 2021).…”

“…To the extent that community can be a strategic resource, as Gibson et al (2021) suggest, a firm might erode this resource by taking its community for granted and becoming a poor corporate citizen. The second paradox is that "a lack of resources can lead to reactions engendering significant strengths" (Miller & Le Breton-Miller, 2021). Folks of a certain age will remember car rental firm Avis's advertising motto, "We try harder."…”