The performance implications of strategic capital for public leisure providers

Ian Richard Hodgkinson and Paul Hughes

The Service Industries Journal, 2011, vol. 32, issue 8, 1375-1391

Abstract: Strategic capital has emerged as a key source of competitive heterogeneity in the private sector. Despite this, little is known about the performance implications of strategic capital in public organisations. Adopting a resource-advantage perspective, we examine the performance implications of strategic capital for public leisure providers. Analysing data generated from public leisure providers, we find that effective strategy implementation enables leisure providers to exploit comparative advantages, which is itself a source of sustained advantage. Furthermore, high performers are endowed with significantly greater levels of strategic capital -- which include ‘strategy commitment’, ‘implementation support’, ‘implementation effectiveness’, and ‘learning’ -- in contrast with low performers. Important differences between internal and external approaches to provision are also identified and discussed, along with the implications of this study for researchers and public policy.

Date: 2011
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DOI: 10.1080/02642069.2011.567413

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