Internal resources, external resources and environment, and firm performance: a study on taiwanese small and medium sized firms
Authors: I Han, Mike Chen-Ho Chao, Cheng-Min Chuang
Journal: Chiao Da Management Review. Dec. 2012, 32(2): 135-169.
Keywords: Strategic resources; Social capital; Firm performance; Taiwanese small and medium sized firms
This paper explains how a firm's intemal resources, extemal resources, and extemal environment affect firm perforrnance. Our research model examines how a firm ‘s internal strategic resources are moderated by social capital and environmental turbulence to affect perfonnance. Findings of an empirical survey of 140 Taiwanese small and medium sized enterprises (SMEs) specifically in the textile and giftware industries significantly support predictions of the positive effects of internal strategic resources on finn performance. Meanwhile, mixed results exist for the moderating effects of social capital and environmental turbulence. Our study makes contributions to both academia and industry by advancing knowledge of the determinants and implications of firm success in the context of Taiwanese SMEs operating in mature industries.