Abstract
Recently, numerous strategy scholars have revitalized the concern with the resources and capabilities side of firms. This trend often referred to as the “resource-based perspective” (RBP), has led to a much improved understanding of firms’ diversification strategies (Montgomery and Wernerfelt 19881 Montgomery and Hariharan 1991) and of the underlying conditions for sustained competitive advantage (Barney 1991 Peteraf 1993). Furthermore, the perhaps more dynamic issue of resource- accumulation processes has been treated in some detail (Dierickx and Cool 1989). In terms of the SWOT framework—the overall idea that strategy is a matter of obtaining fit between the Strengths of the firm and the Opportunities of the environment, while simultaneously safeguarding the Weaknesses of the firm from the Threats of that environment—the RBP may be said to have investigated and added further analytical content to the “Strength-Weaknesses” part.
The authors wish to thank Cynthia Montgomery, Raffi Amit, Jim Brander, Richard Langlois, and participants at the Conference on Integrating Resource-based and Evolutionary Perspectives on Strategy in Snekkersten, Denmark, August 1993, for helpful comments, The usul disclaimers apply.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Alchian, A.A. 1950. “Uncertainty, evolution, and economic theory.” In idem. 1977. Economic Forces at Work. Indianapolis: Liberty Press.
Allen, R.C. 1983. “Collective invention.” Journal of Economic Behavior and Organization 4: 1–24.
Barney, J.B. 1986. “Strategic factor markets: expectations, luck and business strategy.” Management Science 32: 1231–1241.
Barney, J.B. 1991. “Firm resources and sustained competitive advantage.” Journal of Management 17: 99–120.
Cohen, W.M., and Levinthal, D.A. 1989. “Innovation and learning: the two faces of R&D.” Economic Journal 99: 569–596.
David, P.A. 1987. “Some new standards for the economics of standardization in the information age.” In Dasgupta, P. and P. Stoneman (eds.) 1987. Economic Policy and Technological Performance. Cambridge: Cambridge University Press.
Dosi, G. 1982. “Technological paradigms and technological trajectories.” Research Policy 11: 147–162.
Demsetz, H. 1982. “Barriers to entry.” American Economic Review 72: 47–57.
Dierickx, I., and Cool, K. 1989. “Asset stock accumulation and sustainability of competitive advantage.” Management Science 35: 1504–1511.
Farrell, J., and Saloner. G. 1985. “Standardization, compatibility, and innovation.” Rand Journal of Economics 16: 70–83.
Geroski, P., and Vlassopoulos. 1991. “The rise and fall of a market leader: frozen foods in the UK.” Strategic Management Journal 12: 467–478.
Ghemawat, P. 1991. Commitment: the dynamics of strategy. New York: The Free Press.
Langlois, R.N. 1990. “External economies and economic progress: The case of the microcomputer industry.” Mimeo, Department of Economics, University of Connecticut.
Langlois, R.N. 1992. “Transaction cost economics in real time.” Industrial and Corporate Change 1: 99–127.
Loasby, B. 1993. “Understanding markets.” Mimeo, Department of Economics, University of Stirling.
Mansfield, E. 1985. “How rapidly does new industrial technology leak out?” Journal of Industrial Economics 34: 217–223.
March, J. 1991. “Exploration and exploitation in organizational learning.” Organization Science 2: 1–19.
Marshall, A. 1925. Principles of economics. 8th ed. London: Macmillan.
Montgomery, C. A., and Hariharan, S. 1991. “Diversified expansion by large established firms.” Journal of Economic Behavior and Organization 15: 71–89.
Montgomery, C.A., and Wernerfelt, B. 1988. “Diversification, Ricardian rents, and Tobin’s q.” RAND Journal of Economics 19: 623–632.
Nelson, R.R., and Winter, S.G 1982. An evolutionary theory of economic change. Cambridge: Belknap Press.
Porter, M.E. 1980. Competitive strategy. New York: Free Press.
Porter, M.E. 1990. The competitive advantage of nations. New York: Free Press. Pyke, F., and Sengenberger, W. (eds.). 1992. Industrial districts and local economic regeneration. Geneva: International Institute for Labor Studies.
Richardson, G.B. 1960. Information and investment. Oxford: Oxford University Press.
Richardson, G.B. 1972. “The organisation of industry.” Economic Journal 82: 883–896.
Routledge, B., and von Amsberg, J. 1994. “Endogenous social capital.” Mimeo, University of British Columbia.
Russo, M. 1985. “Technical change and the industrial district: the role of interfirm relations in the growth and transformation of ceramic tile production in Italy.” Research Policy 14: 329–343.
Saxonian, A. 1991. “The origins and dynamics of production networks in Silicon Valley.” Research Policy 20: 423–437.
Stigler, G. 1951. “The division of labor is limited by the extent of the market.” Journal of Political Economy 59: 185–193.
Sugden, R. 1986. The economics of rights, cooperation, and welfare. Oxford: Basil Blackwell.
Teece, D.J. 1992. “Foreign investment and technological development in silicon valley.” California Management Review 34 (2): 88–106.
Teece, D.J., Pisano, G., and Shuen, A. 1991. “Firm capabilities, resources, and the concept of strategy.” Mimeo, University of California, Berkeley.
Wernerfelt, B. 1984. “A Resource-Based View of the Firm.” Strategic Management Journal 5: 171–180.
Winter, S.G. 1984. “Schumpeterian competition in alternative technological regimes.” Journal of Economic Behavior and Organization 5: 287–320.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1995 Springer Science+Business Media New York
About this chapter
Cite this chapter
Foss, N.J., Eriksen, B. (1995). Competitive Advantage and Industry Capabilities. In: Montgomery, C.A. (eds) Resource-Based and Evolutionary Theories of the Firm: Towards a Synthesis. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-2201-0_3
Download citation
DOI: https://doi.org/10.1007/978-1-4615-2201-0_3
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-5923-4
Online ISBN: 978-1-4615-2201-0
eBook Packages: Springer Book Archive