The amalgamation of capabilties and strategies as determinants of firm performance: U.S. telecommunications industry

by Snedegar, Steven T., Ph.D., CAPELLA UNIVERSITY, 2009, 107 pages; 3379681


Exponential change in the U.S. telecommunications industry in the past and coming decades may require firms to expertly choose and execute strategies that are aligned with their capabilities. This study focused on U.S. telecommunication firms' abilities to assess their generic capabilities, their abilities to link those capabilities to generic strategies, and ultimately to maximize firm performance. The problem is that firms competing in this industry are facing industry stages of maturity and decline. Firms that effectively assess their capabilities and apply appropriate strategies associated with mature and declining stages are likely the firms that will emerge successfully. This research focused on the interactions that exist between human capital resources and a cost strategy, the interactions that exist between organizational capital resources and a focus strategy, and the interactions that exist between physical capital resources and a differentiation strategy. The 31 question instrument used in the collection of data was a choice of a self-administered paper version or a web-based survey tool. The population comprised 44 U.S. wireless and fixed line telecommunications firms, including 338 senior executives who are typically responsible for shaping corporate strategy. Pearson's coefficient correlation analysis was applied to the data. While a few connections among generic capabilities, generic strategies, and firm performance were established, there was only one statistically significant finding that could be drawn. This finding was among human capital resources, a cost strategy, and market share (r = .307, significant at the .05 level). Capabilities and strategies more specific to the telecommunications industry may have provided more definitive results.

AdviserLilburn Hoehn
Source TypeDissertation
SubjectsManagement; Mass communication
Publication Number3379681

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