How Sustainable is Your Competitive Advantage?

Williams, J.R.

doi:10.2307/41167422

Cited by 213 publications

(86 citation statements)

References 11 publications

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“…Or put differently, the so-called "content" side of strategy has begun to highlight the importance of "process" research on learning and maintaining organizational capabilities (Powell, 1992a;Ulrich and Lake, 1990). Process research on resources follows content research "like the left foot follows the right" (Mintzberg, 1990 (Stata, 1989;Williams, 1992 (De Geus, 1988;Stata, 1989). Shared mental models of markets might include customer segments served, customer functions served, and technologies utilized (Abell, 1980 (1978) may be used by organizations to overcome systematic errors of judgment and choice (Hogarth, 1987;Kahneman, Slovic and Tversky, 1982).…”

Section: Resources and Capabilitiesmentioning

confidence: 99%

The management of resources and the resource of management

Mahoney

1995

Journal of Business Research

605

333

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This paper argues that the resource-based approach of deductive economics, the dynamic capabilities approach of strategy process, and organization theory research on organizational learning need to be joined in the next generation of resource-based research. This suggested redirection of resourcebased research implies a return to a "resource-learning" theory of the firm begun by Penrose (1959).A synthesis of resource-based theory and learning theory allows us to examine how two sources of firm heterogeneity (resources and mental models) are intertwined. THE MANAGEMENT OF RESOURCES AND THE RESOURCE OF MANAGEMENTA consensus is beginning to emerge in strategic management that calls for an active attempt to increase the dialogue between behavioral and economic approaches to strategy issues (Amit and Schoemaker, 1993;Barney, 1992;Eisenhardt, 1989;Mahoney, 1992b;Schoemaker, 1993;Zajac, 1992). In the spirit of this pluralistic and balanced approach (Bowman, 1990;Rumelt, Schendel and Teece, 1991), it is suggested that the literature on organizational learning (behavioral literature) can and should be united with the emerging resource-based view of the firm (a more economic approach).Specifically, this paper argues that a holistic approach which combines behavioral logic with economic logic is necessary for advancing the theory of invisible assets (Itami and Roehl, 1987) and sustainable competitive advantage. Williamson (1991) notes the uncertainty of whether the dynamic capabilities approach (Nelson and Winter, 1982;Prahalad and Hamel, 1990;Rumelt, 1984; Teece, 1990) --in which organizational learning should certainly be a part --and the resource-based approach (Barney, 1991;Conner, 1991;Peteraf, 1993;Wernerfelt, 1984) will play out individually or in combination. The argument here is that communication can and should flow freely between participants of the two approaches. In fact, the two approaches naturally blend into each other (Mahoney and Pandian, 1992 (Collis, 1991;Tallman, 1991). In the resource-based view, the concept of strategy is considered as a "continuing search for rent" (Bowman, 1974, p. 47) (Penrose, 1959).In contrast to (strong form) efficient market theorists, most resource-based theorists insist that short-term economic rents are possible (Schoemaker, 1990 (Conner, 1991). Third, entrepreneurial (Schumpeterian) rent may be achieved by risk-taking and entrepreneurial insight in an uncertain/complex environment (Rumelt, 1987;Schumpeter, 1934).Fourth, the firm may be able to appropriate rents when resources are firm-specific (Aharoni, 1993 (Andrews, 1980, pp. 63-71; Ansoff, 1965, pp. 90-102; Hofer and Schendel, 3 1978, pp. 144-153; Selznick, 1957, pp. 42-56 (Barney, 1991;Demsetz, 1973;Powell, 1992b productive services from existing resources present a "jig-saw puzzle" for balancing processes (Penrose, 1959, p. 70). Excess capacity due to indivisibilities, and cyclical demand, to a large extent drives the diversification process (Chandler, 1962;Farjoun, 1993 At all times there exists w...

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Section: Resources and Capabilitiesmentioning

confidence: 99%

The management of resources and the resource of management

Mahoney

1995

Journal of Business Research

605

333

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“…A large theoretical and a growing empirical literature exist on the subject. The perhaps dominant contemporary approach to the analysis of sustained competitive advantage (henceforth,"SCA") is the resource-based view (henceforth, "the RBV"), initiated in strategy content research in the mid-1980s by Wernerfelt (1984), Rumelt (1984) and Barney (1986), and continued by these and other writers (e.g., Amit and Schoemaker 1993;Barney 1991Barney , 1997Black and Boal 1994;Conner 1991;Dierickx and Cool 1989;Grant 1991;Kay 1993;Peteraf 1993;Reed and DeFilippi 1990;Wernerfelt 1995;Wernerfelt and Montgomery 1986;Williams 1992). It is hard to underestimate the strength of the voice of the RBV in the present conversation in strategy research.…”

Section: Introductionmentioning

confidence: 99%

The resource‐based tangle: towards a sustainable explanation of competitive advantage

2003

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“…Assets are resource endowments that a firm has accrued over time, and that can be deployed for forming a competitive advantage (Amit and Schoemaker, 1993;Day, 1994;Fahy and Smithee, 1999;Grant, 1991). Marketing capabilities successfully deployed build greater customer value and enhance the ability to deliver a competitive advantage is formed (Fahy and Smithee, 1999;Kay, 1993;Williams, 1992).…”

Section: Digital Technology and Marketing Capabilitymentioning

confidence: 99%

Digital technology and marketing management capability: achieving growth in SMEs

Foroudi

Gupta

Nazarian

et al. 2017

QMR

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Purpose -The intentions of this study is to evaluate the constructs relationships in order to gain more insight and definitive clarification of the factors related to company's growth in UK. Based on resource-advantage theory, this research addresses "to what extent does digital technology influence marketing capability which loads to company's growth?" Design/methodology/approach -The data was gathered through 21 in-depth interviews with managers from different multinational organizations and 6 focus groups with employees and new empirical insights are offered.Findings -The study identifies the two key components of digital technology (information quality and service convenience). In addition, the relationships between digital technology, tangible/intangible assets, and marketing capabilities perform significant role of facilitator between company's growths.Research limitations/implications -The focus on UK SMEs limits the generalisability of the results. Further study should be collected in other sector and country settings in order to examine the associations recognized in the current study.Originality/value -This study illustrates the main impacts of digital technology on intellectual/physical assets that while managers and employees have specified that marketing capability is significant for organizations, there are a few other areas of concern with regard to consequences related to company's growth, competence, and core competence, particularly in a SMEs settings. Keywords Achieving Growth in SMEsUnderstanding the factors of superior firm's performance is a theme of consistent discussion and of significant interest to both researchers and practitioners (Fahy et al., 2000). The view of core competence was presented by Andrews (1971) as "what the company can do particularly well" (p. 46). However, an earlier paper by Ansoff (1965) who portrays core competence in a rich argument of its meaning which known as 'common thread' (p.105).Ansoff (1965) signifies the business competencies as "a relationship between present and future product markets which would enable outsiders to perceive where the firm is heading, and the inside management to give it guidance" (p.105). Previous findings presented by Andrews (1971) accomplished significant study of core competence carried out by Prahalad and Hamel (1990). Prahalad and Hamel (1990) illustrated core competence as the core system that "provides nourishment, sustenance, and stability" (p.82). The experiential study of marketing capabilities is also underlined being given increased attention in the academic literature (Blesa and Ripolles, 2008;Ribeiro et al., 2009;Tsai and Shih, 2004;Vorhies and Morgan, 2005;Weerawardena, 2003). Marketing capabilities employ a substantial and optimistic result on customers' satisfaction, which eventually indicate to superior organizational performance in terms of sales, profit and competence (Santos-Vijande et al., 2012).What distinguishes this paper is greater understanding of digital technology and its influence on design inno...

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How Sustainable is Your Competitive Advantage?

Cited by 213 publications

References 11 publications

The management of resources and the resource of management

The management of resources and the resource of management

The resource‐based tangle: towards a sustainable explanation of competitive advantage

Digital technology and marketing management capability: achieving growth in SMEs

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