TESTING VRIN FRAMEWORK: RESOURCE VALUE AND ...

Management, Vol. 17, 2012, 2, pp. 51-64A. Talaja: Testing VRIN 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