This article presents a response to a letter submitted by David Bright regarding the article, “The Relationship Between Corporate Philanthropy and Shareholder Wealth: A Risk Management Perspective,” by Paul C. Godfrey. The author responds to Bright's belief that philanthropic action needs to be motivated by virtuous intentions in order to be genuine. He also provides a distinction between the term values and the more specific term virtues. The author suggests that managers work to ensure that an organization's philanthropic activities remain consistent with the firm's identity.

Tacit knowledge, one of the most promising resources, is among the toughest toleverage. It is important because it is often inimitable. However, increasing its scalemay require codification, which may make it imitable. We explore and illustrate anapproach to applying information technologies to leverage scarce expertise withoutcodifying or transferring knowledge. Such technology may allow individuals to furtherspecialize and generate more tacit knowledge, preserving the strategic propertiesof knowledge while scaling up.

We argue that the risk associated with the value of a firm's core resources has an impact on employee decisions to make firm-specific investments, independent of the threat of opportunism that might exist in a particular exchange. We further explore mechanisms firms may adopt to mitigate the employee incentive problem stemming from the risk associated with core resource value. These arguments shed new light on resource-based theories of corporate diversification.

We integrate and extend research on causal ambiguity, indicating the principal causal paths from ambiguity to performance and discussing the connections between empirical findings and resource-based expectations. We then develop the linkage between causal ambiguity and management perception. Drawing on experimental and field research, we give testable propositions linking ambiguity, perception, and firm performance; integrate this research with studies of causal ambiguity; and suggest directions for future causal ambiguity research.