How Dynamics, Management, and Governance of Resource Deployments Influence Firm-Level Performance

While a firm's performance is dependent on manyfactors, the performance of entrepreneurial firms can be analyzed according tothe firm's managerial knowledge and institutional investor ownership on thestock market.Several approaches are used to understand strategicmanagement. Initially, the history of resource deployments is discussed andcorresponding hypotheses based on this information are presented.Then,the role of both management experience and marketing experience on resourcedeployment of R&D investments is also discussed, and several hypotheses areproposed.The study's participants consist of 60 technology-basedentrepreneurial firms that completed an initial public offering in the medical,surgical, and dental instruments industry between 1990 and 1995, with the datagathered until 1999.The data included information on investments,management, and governance from prospectus and proxy statements, as well asstock market performance data from Compustat files.To analyze the paneldata, Hausman's test for orthogonality of the random effects is utilized. The findings of the analysis include the following:a history ofincreased marketing investments creates a source of competitive advantage; amanager's experience positively influences the relationship between R&Ddeployment intensity and economic returns; and institutional ownershipincreases economic returns from marketing deployments.(AKP)