Artificial intelligence and the changing sources of competitive advantage

Krakowski, Sebastian; Luger, Johannes; Raisch, Sebastian

doi:10.1002/smj.3387

Cited by 106 publications

(45 citation statements)

References 86 publications

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“…The presumed scalability of digital technologies is rooted in what resource scholars have dubbed the scale‐free nature of digital assets (Adner et al, 2019; Levinthal & Wu, 2010). A resource is scale‐free when it can be extended to additional uses without incurring opportunity costs, meaning that the value of the resource in its first‐best use does not decline when it is extended to other uses in addition to the first (Krakowski et al, 2022; Wu, 2013). Knowledge, patents, or brands are often cited as examples of scale‐free resources in the management literature (Levinthal & Wu, 2010).…”

Section: Literature and Hypothesesmentioning

confidence: 99%

Boots on the ground: Foreign direct investment by born digital firms

Stallkamp

Chen

2023

Global Strategy Journal

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Research SummaryRecent global strategy research on born digital firms (i.e., firms with digital products distributed through digital channels) has paid only limited attention to the role of foreign direct investment (FDI) in the internationalization of such firms. We argue that exploiting digital technologies requires a range of complementary, non‐digital resources. Born digitals typically deploy FDI when large cultural and geographic distances limit the fungibility and scalability of such complementary resources, leading to a positive relationship between distance (cultural and geographic) and FDI. The positive distance effect is moderated by business model type. Using a sample of US‐based born digital firms with over 800 FDIs, we find support for our hypotheses and contribute an important empirical baseline to recent discussions of digitalization in global strategy.Managerial SummaryCompanies selling digital products (e.g., software, cloud‐based services) are theoretically able to offer their products in foreign markets through internet‐based channels, without ever setting foot in a foreign country. And yet, many “born digital” firms establish a physical presence in foreign markets by undertaking foreign direct investment (FDI). This phenomenon remains insufficiently explained. We argue that FDI can supply important complementary resources that help exploit and monetize digital assets in foreign markets. Using data from over 800 FDI projects, we show that FDI is more likely to occur if the foreign market is far away or culturally very different from the company's home country, and that the strength of this relationship differs among B2C and B2B business models.

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Section: Literature and Hypothesesmentioning

confidence: 99%

Boots on the ground: Foreign direct investment by born digital firms

Stallkamp

Chen

2023

Global Strategy Journal

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“…A company's competitive advantage and business performance can be strengthened through market orientation. 39 Krakowski et al 40 Competitive advantage can be operationalized using price/cost, quality, delivery dependability, and exploit market opportunities. 42,43 The competitive advantage measures can be categorized as costbased, product-based, and service-based.…”

Section: Methodsmentioning

confidence: 99%

How Leagile Strategy and Strategic Partnership Affect Competitive Advantage of Construction Supply Chains

Oyombe

Awino

Ogutu

et al. 2023

Journal of Business Strategy, Finance and Management

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Objective: This study aimed at assessing the moderating influence of strategic partnership on the relationship between leagile strategy and competitive advantage in the supply chains of construction companies in Nairobi City County, Kenya. Methodology: Using a cross-sectional descriptive survey strategy and stratified sampling procedure, a sample size of 323 was obtained. Data from 260 companies were collected vide structured questionnaires and analyzed utilizing descriptive analysis and linear regression. Statistical software for social sciences version 22 was used for data analysis and the hypothesis was also tested. Findings: The results revealed strategic partnership had no moderating influence on the relationship between leagile strategy and competitive advantage. Further, strategic partnership was found to have a direct influence on competitive advantage as an independent variable. Conclusion: It was concluded that leagile strategy and strategic partnership influence the competitive advantage of construction supply chains in Nairobi City County as independent variables. A further conclusion was that there are additional factors attributed to the achievement of competitive advantage in construction supply chains besides leagile strategy and strategic partnership. Implications: The study provides a platform for advancing theory and research in strategic management by showing that leagile strategy and strategic partnership are significant contributing factors to the achievement of competitive advantage in the supply chains of construction companies in Nairobi City County Kenya. It adds to the existing literature, on the aspects which influence Competitive Advantage in the supply chains of Construction Companies. Managers and practitioners find this information useful in providing a comprehensive guide on the achievement of competitive advantages and survival by companies. Policymakers are made aware of ways in which the construction industry could attain competitive advantages and solve the myriad problems using a blend of leagile strategy and strategic partnership among other strategies. The government and construction industry may benefit by utilizing the findings as a basis for reforms to improve the competitiveness of companies in the sector and beyond.

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“…The emergence of technologies that assist human decision‐making, such as AI, challenges our understanding of the relationship between managerial resources and performance differentials. In the article on “AI and the Changing Sources of Competitive Advantage,” Krakowski, Luger and Raisch (2023) study performance in chess tournaments that rely exclusively on human decision‐making, and in tournaments that include AI either as an aid to human decision‐making or as a full replacement for it. They find that human ability retains its role in explaining performance differences.…”

Section: Content Of the Special Issuementioning

confidence: 99%

Renewing the resource‐based view: New contexts, new concepts, and new methods

Helfat

Kaul

Ketchen

et al. 2023

Strategic Management Journal

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The resource‐based view is an enduring and impactful mainstay of research within strategic management and beyond. This editors' introduction to the special issue on “new directions for the resource‐based view” accomplishes two main tasks. First, we describe the contributions offered by the seven articles contained in the special issue. Second, we explain the potential value to research of incorporating into resource‐based inquiry new contexts (artificial intelligence and digitization, distributed organizations, and stakeholders and sustainability); new concepts (resource redeployment, market shaping through resources and capabilities); and new methods (text analysis and machine learning, formal models, policy capturing). The overall aim of this introduction is to help invigorate the resource‐based view by spotlighting a series of promising new directions.

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Artificial intelligence and the changing sources of competitive advantage

Cited by 106 publications

References 86 publications

Boots on the ground: Foreign direct investment by born digital firms

Boots on the ground: Foreign direct investment by born digital firms

How Leagile Strategy and Strategic Partnership Affect Competitive Advantage of Construction Supply Chains

Renewing the resource‐based view: New contexts, new concepts, and new methods

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