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The authors empirically study how the value of resources and capabilities for performance are contingent upon the environment. Using a novel dataset of Information Security startups, they study how markets for the supply of technology change the relative value of technology and marketing capability for performance. Consistent with the RBV of the firm, since internal technical effort is a substitute for technology that can be acquired from the market, the results show that greater supply of technology diminishes the value of technical ability. Moreover, since marketing capability is a complement to technology, the results suggest that a greater supply of technology enhances the value of marketing capability.
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