stakeholder theory which proposes that an organization's excellence depends on the manner in which manages the relationships with vital stakeholder groups that have a bearing on its ability to achieve its primary goals[ CITATION Hel15 \l 1033 ]. The stakeholder theory establishes the legitimacy and loci of influence of various stakeholders providing partial explanation for the roles of these key players on firm performance but falls short of articulating the joint influence ofstakeholders and more so external stakeholders and other key aspects of the organization such as resources in explaining intra and inter-firm performance variation.
Global Strategy and Foresight 13Expansion strategies are underpinned by the tradeoff theory which proposes that organizations have to make choices regarding the benefits of reserving retained earnings against the costs of doing so in establishing the an optimal or ideal capital structure. Resources are essential to the existence, stakeholder management, expansion and performance of organizations.Resources could be inputs in production processes or any other tangible properties that an organization has control over in its operations. Resources could financial, physical, human, or organizational and may be tangible or intangible. A firm’s competitiveness lies in the efficient utilization of valuable resources that the firm controls External environment is defined as the people and institution that indirectly affect or have a distant locus of influence on the organization[ CITATION Wie12 \l 1033 ]. They do not closely participate in running the organization. Resources can either cause a culture of self-preservation and resistance following radical industry change and a history of successful utilization it seems plausible for management to discourage change for as long as status quo seems to be working. Most organizations become extinct for repeatedly doing what seems to work at the morning while ignoring environmental change signals to their detriment.Resources can either limit or expand the strategic options relative to competitors, and so represent a powerful source of sustained heterogeneity among firms firm has mainly focused on how firm’s employ or use their existing resources which in turn results in providing partial explanation on the emergence of heterogeneous resource positions[ CITATION Cho15 \l 1033 ]. Performance may be enhanced by changing resource application from building and strengtheningbusiness relationships towards making targeted investments in increasing the effectiveness of therelationship so as to improve the relationship's potential to generate commercial value
Global Strategy and Foresight 14Some studies have shown that it may be worthwhile to utilize resources towards more market capacity and tacit knowledge development efforts in hypercompetitive markets with higher levels of uncertainty and higher returns through expansion. Resources contribute to most
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