Authors: Shilpa Bhat N. H, Assistant Professor Ashoka K. G., Research Scholar Mahendra H. R., Assistant Professor Karthik Naik
Abstract: Many firms use financing instruments, certifications, technologies, and recognised standards whose benefits continue only when the firm meets ongoing commitments and proves that it has done so. Existing resource-based theory explains why firm resources differ and why they require maintenance. Institutional theory explains certification, legitimacy, and symbolic adoption. However, these theories do not fully explain how internal performance becomes an externally recognised benefit. This paper develops a simple capability and recognition model. It defines a Commitment-Bearing Strategic Resource Arrangement as a firm-controlled arrangement that joins a valued instrument or status with continuing commitments, external evaluation, and a benefit that depends on recognised fulfilment. The model contains five core variables: commitment-realisation capability, actual fulfilment, evidence quality, evaluator recognition, and commitment-linked benefits. Stakeholder reliance is the only moderator. Organisational capability improves actual fulfilment and evidence quality. Both are needed for favourable evaluator recognition, which then preserves benefits such as eligibility, access, credibility, lower perceived risk, and financing advantages. Negative judgement can reduce value even when the underlying asset remains useful or the contract remains valid. Common standards mainly preserve participation or parity. Lasting advantage requires an integrated fulfilment system that competitors cannot easily copy.
