Isolating mechanisms as sustainability factors of resource-based competitive advantage

Abstract

Summary Isolating mechanisms as sustainability factors of resource-based competitive advantage Strategic resources which fulfill conditions of VRIN generate extraordinary profits for organizations. The possibility of these long-term profits (rents) to achieve can be protected by isolating mechanisms. These mechanisms can be different but the most important are causal ambiguity, lead time, path dependency, the role of history, socially complex links and the time compression diseconomies. These mechanism can be WIM and AIM type (based on willingness or ability). They can be also analyzed on individual, organizational or social levels. The article presents the case study which supports available systems of mechanism categorization.

The Dynamics of the Profitability and Growth of Restaurants; The Case of Norway

“…One set identifies various isolation mechanisms. An isolation mechanism is any knowledge, physical, or legal barrier preventing a competitor from replicating a product [Mazur (2013), Lepak et al (2007), Rumelt (1984).] There can be cases where it is too costly for competitors, and they are not willing to take the risk, or where the competitors are not able to imitate the product or services [Madhok et al (2010)].…”

Development of sustainable resource ties in the agrifood industry: the case for the Polish fruit and vegetable industry

“…Generally, in previous resource-based studies the sustainability of the competitive advantage is based on factors preventing competitors from imitating a firm's resources (Mazur and Kulczyk, 2013;Oliver, 1997). As Reed and DeFillippi (1990) proved that specificity in a firm's skills and resources can generate casual ambiguity in competency-based advantage and thus raise barriers to imitation.…”

Dynamic Capability-Based Approach to Value Appropriation

“…Bowman & Ambrosini, 2000;Lepak et al, 2007;Priem, 2007;Lavie, 2007;Fischer, 2011) and value appropriation (e.g. Mizik & Jacobson, 2003;MacDonald & Ryall, 2004;Czakon, 2012;Mazur & Kulczyk, 2013;Di Gregorio, 2013). In order to investigate existing tendencies in terminology used a bibliometric method was applied.…”

“…Following years 2010-2015 indicate a growing tendency to use that term over value appropriation. However, since the content of both terms is in its deep sense the same, many authors have also begun to use those labels interchangeably emphasizing their synonymous character (Pitelis, 2013;Mazur & Kulczyk, 2013;Duhamel et al, 2014). Nevertheless, terminology usage should follow the principles of precision and utility.…”