TESTING VRIN FRAMEWORK: RESOURCE VALUE AND ...

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Management, Vol. 17, 2012, 2, pp. 51-64A. Talaja: Testing <strong>VRIN</strong> framework: Resource value and rareness as sources of competitive…4. RESULTSFor statistical analysis, Lisrel 8.80 structural modeling program withSattora-Bentler robust Maximum Likelihood approach (RML) was used. TheRML method was chosen because it provides an overall model fit test statisticsand parameter standard errors that are robust to mild deviations from normality(Raykov and Marcoulides, 2006). SEM analysis of proposed recursive structuralmodel was conducted in one step. The model consists of two exogenous latentconstructs: resource value and resource rareness, two endogenous latentconstructs: competitive advantage and performance, and 22 manifest variables,which serve as indicators of latent variables. From t-values of factor loadingsand path coefficients presented in Figure 2, it can be seen that all relationshipsare statistically significant.Figure 2. Structural equation model - t-valuesSource: Empirical analysis results (Lisrel output).58
Management, Vol. 17, 2012, 2, pp. 51-64A. Talaja: Testing <strong>VRIN</strong> framework: Resource value and rareness as sources of competitive…Factor loadings and estimated path coefficients for the structuralrelationships hypothesized by the model are presented in Figure 3. The resultsshow that all paths are in the expected direction.Figure 3: Structural equation model - standardized solutionSource: Empirical analysis results (Lisrel output).Direct effects of resource value and rareness on company's competitiveadvantage, as well as direct effect of competitive advantage on performance, areall shown in Figure 1, while indirect and total effects, which are a function ofdirect effects that make them up, are shown in Table 1.Table 1. Direct, indirect and total effects from the proposed modelDirectinfluence oncompetitiveadvantageIndirectinfluence oncompetitiveadvantageOverallinfluence oncompetitiveadvantageInfluence onperformanceValue 0.32 0.171 0.491 0.397Rareness 0.31 0.176 0.486 0.394Source: Empirical analysis results.59
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