1 / 8

Firm resources and sustained competitive advantage

Firm resources and sustained competitive advantage. Barney, J. Journal of Management , 17(1): 99-120. Research question. Purposes. Understanding the sources of sustained competitive advantage Examines the link between firm resources and sustained competitive advantage

ulrichl
Download Presentation

Firm resources and sustained competitive advantage

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Firm resources and sustained competitive advantage Barney, J. Journal of Management, 17(1): 99-120

  2. Research question

  3. Purposes • Understanding the sources of sustained competitive advantage • Examines the link between firm resources and sustained competitive advantage • Under what conditions firm resources can a source of sustained competitive advantage for a firm

  4. Assumptions • Firm resources are heterogeneous • Firms do not obtain first mover advantage for identical resources • These resources are not perfectly mobile across firms • Enter barrier and mobility barrier prolong the heterogeneous effect

  5. Sustained competitive advantage • A firm is said to have sustained competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy • Not purchasable on the factor market

  6. Firm resources • Valuable • Resources that improve the efficiency and effectiveness of strategy implementation • Rareness • A small number of competitors • Imperfectly imitable • a) depends on unique historical condition, b) causal ambiguity, and c) socially complex • Non-substitutable • Either similar or different, so long as the purpose is served

  7. Firm Resources and Sustained Competitive Advantage • The relationship btw resource heterogeneity and immobility; value, rareness, imitability, and substitutability; and sustained competitive advantage.

  8. Firm resource endowments • Managers are limited by their ability to manipulate all the attributes and characteristics of their firms • This limitation makes some firm resources imperfectly imitable, and thus potential sources of sustained competitive advantage • Competitive advantages cannot be purchased on open markets • Manager’s role is to understand endowment (VRIN resources)

More Related