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This paper explores the interplay between product market, strategic factor market, and resource development. More competition in the product market makes resource buyers bid higher for resources, as the value of trying to preempt the resources is higher. Holding other initial conditions constant, resources are developed more in industries with factor markets than in industries without. When buyers of resources cannot integrate more than one resource, developers choose to develop either at a low or high level, generating a type of heterogeneity that would not arise otherwise. Changes in the intensity of competition in the product market can have the opposite effect on resource development efforts depending on the presence or absence of factor markets.

As customer expectations grow and companies across industries face extreme marketplace pressures, unexpected or, rather, unintended battles for resources and inputs can arise. This intense competition over inputs of production and services is called factor market rivalry. While previous work has discussed factor market rivalry and some potential mitigation strategies from its ill effects, one may wonder why factor market rivalry induces such extreme competition among firms for similar resources. Obviously materials with constrained supplies contribute to factor market rivalry, but the current research suggests that factor market rivalry is further caused by factor market myopia (FMM). FMM stems from viewing the sources of resources too narrowly or becoming fixated on a singular input when substitutes may exist. Developing the concept of FMM and contextualizing the idea in generalizable theory are the primary contributions of the current research.

As emphasized by Barney (1986), any explanation of superior profitability must account for why the resources supporting such profitability could have been acquired for a price below their rent-generating capacity. Building upon the literature in economics on coordination failures and incomplete markets, we suggest a framework for analyzing such strategic factor market inefficiencies. Our point of departure is that a strategic opportunity exists whenever prices fail to reflect the value of a resource's best use. This paper examines the challenges of imputing a resource's value in the absence of explicit price guidance and suggests the likely characteristics of strategic opportunities. Our framework also suggests that the discovery of strategic opportunity is often a matter of 'serendipity' and access to relevant idiosyncratic resources. This latter observation provides prescriptive advice, although the analysis also explains why more detailed guidance has to be firm specific.

Using the data on the religious belief of entrepreneurs in Chinese family firms, this study shows that religious entrepreneurs significantly positively affect corporate longevity, echoing the view that religious entrepreneurs can obtain managerial skills and share managerial knowledge about corporate operation through the conduit of religious attendance, and thus firms with religious entrepreneurs are more long-lived. Moreover, the development of factor markets across different provinces in China reinforces this positive relation between religious entrepreneurs and corporate longevity. Furthermore, qualitatively similar results can be found from various robustness tests, and our conclusions still stand after controlling for the potential selection bias in the research sample. Lastly, after differentiating different religious beliefs, the positive relation between religious entrepreneurs and corporate longevity is only valid for Western religious beliefs (but not for Eastern religious beliefs), and the reinforced role of the development of factor markets only stands for Eastern religious beliefs.

Using 2009–2013 data on Chinese industrial enterprises, this paper empirically tests the impact of factor market distortion on enterprise innovation and finds that it has a significant inhibitory effect. A more serious factor market distortion results in a stronger inhibitory effect. For enterprises with different characteristics, the inhibitory effects of factor market distortion on innovation differ substantially. Enterprises and entrepreneurs may exploit the rent-seeking opportunities generated by factor market distortion to earn income to reduce innovation activities. For enterprises with different ownership systems, regions, and factor densities, significant differences exist in the impact of factor market distortion on their innovation capabilities. Therefore, we should accelerate the process of factor market reform, reduce the direct intervention of the government in market activities and its control over factor resources, and eliminate the motivation of enterprises to engage in rent-seeking to earn income.

In this research, we examine the dynamic capability of resource allocation to invest in operational capabilities. Using a computer simulation, we model a process of firms competing in factor markets for opportunities to invest in existing capabilities and acquire new ones. Based on the simulation results, we derive a set of propositions about the conditions under which there are and are not performance benefits from possessing a superior ability to search for new capabilities. Because the definition of what constitutes a new capability is based on a firm's preexisting capabilities, we also incorporate differences in initial endowments into the analysis. We find that endowment and search ability both matter, and that in many circumstances, the effects of possessing a superior endowment dominate the effects of superior search ability.

This paper develops a model of information-acquisition decisions by firms that are competing in a \"strategic factor market\" (Barney 1986) to purchase a scarce resource whose value is unknown and differs across firms. The model builds on the argument that more accurate expectations about the firm-specific value of resources is, other than luck, the only way for firms to obtain the specific resources required for competitive advantage. We address the more specific question of what types of information firms should gather to accomplish this goal. The model generates a series of testable hypotheses about how a firm's optimal mix of different types of information is affected by a number of factors, including the level of uncertainty about the value of the resource being acquired; the rarity, imitability, and nonsubstitutability of that resource; the level of inscrutability of firms' pre-existing stocks of resources; and firms' information-gathering and information-processing capacities.

Organizations monitor factor‐markets for strategic inputs that directly contribute to the firms' unique advantage. Thus, managers may be unaware of essential supporting inputs that bundle with strategic inputs to sustain the organization's success. Increasingly, supply chain resources are part of that strategic bundle of resources essential for achieving the firm's competitive advantage. This research employs a conceptual theory‐building approach to examine competition among diverse industries in factor‐markets using the example of supply chain services and the relatively new lens of factor‐market rivalry theory. Data relative to air cargo capacity in China, port capacity in South Vietnam and the U.S. port and rail system provide the context for theoretical and practical insights into the implications of factor‐market rivalry on firm performance.

Standard pay-as-you-go pension system is facing long-term and short-term sustainability challenges in several countries. Possible replacement of standard pension system might be in a form of private pension savings. Private pension savings are meaningful only if they provide sufficiently high returns. The aim of this manuscript is to analyse performance of Slovak pension funds and factors impacting this performance, especially government interventions. This manuscript is focused on enhanced Carhart four-factor model, Bollen and Busse four-factor model, and Fama and French five-factor model based on 23 pension funds from Slovakia from period starting September 2012 and ending September 2019. These models have been extended by other variables describing bond market factors and impact of regulatory interventions on performance of pension funds. Results of analysis have proved that legislative interventions have impact on performance of analysed pension funds. Each legislative intervention has caused average daily yield to decrease by about 0.01% to 0.03%. Findings described in this manuscript can contribute to better knowledge of pension funds for both contributors who need to decide whether to participate in the second pillar or not, as well as for regulators who develop legislation measurements in this area.

We investigate the consequences of imperfect factor market development for farm efficiency in North China. We estimate the extent to which an inverse relationship in farm productivity can be attributed to the administrative (as opposed to market) allocation of land, combined with unevenly developed off-farm opportunities. Using a new household survey, we find considerable inefficiency in the use of labour. This inefficiency is alleviated by external labour markets and, to a limited degree, by administrative reallocations. The reallocations do not go far enough, however, which raises important questions about constraints on rental activity and property rights formation more generally. JEL Classification: Q15, O12