Changes in market and nonmarket strategic resources in the early phase of the industry lifecycle: case Attendo MedOne Ltd in Finnish public healthcare

Abstract

Research Objectives: The study addressed the gap in the current literature concerning how market and nonmarket strategic resources change in the early phase of the industry. The objective was to build new theory by generalizing the findings, from the case study in the outsourcing business in Finnish public healthcare, to the wider context of new businesses that evolve around a public-private partnership and where opportunities are controlled or influenced through the political process.

Research Data and Method: The research data consisted of archival data (invitations to tender and concluding records) regarding all the outsourced units in primary healthcare dating back to the year 2004. Five open-ended interviews were conducted with executives involved in the outsourcing business. In addition, the above data sets were supplemented with news excerpts and company financial statements from 2004 to 2008. The study combined both quantitative and qualitative methods in a single case inductive research design.

Research Findings: Based on the theory formed in the study, it is argued that the superior competitive position in a closely linked business constitutes a strategic market resource, and political resources in the relevant domain, comprise a strategic nonmarket resource in the early phase of new businesses that evolve around a strong public-private partnership. Preliminary results lend support to the notion that dynamic capabilities and entrepreneurial management are necessary to sustain the competitive advantage stemming from the strategic market resource. Moreover, dynamic political management capabilities are needed to sustain the competitive advantage of the strategic nonmarket resources as the above mentioned new businesses evolve along the industry lifecycle.