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Position, leverage and opportunity: a typology of strategic logics linking resources with competitive advantage

✍ Scribed by Christopher B. Bingham; Kathleen M. Eisenhardt


Publisher
John Wiley and Sons
Year
2008
Tongue
English
Weight
169 KB
Volume
29
Category
Article
ISSN
0143-6570

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✦ Synopsis


Abstract

The resource‐based view's (RBVs) contribution toward understanding competitive advantage remains unfulfilled. A reason is the confounding of the concept of resources with RBVs strategic logic. We disentangle these by developing a typology of strategic logics (i.e., leverage, position, and opportunity) that specify alternative theoretical pathways linking resources with competitive advantage. We clarify their market assumptions, relevant performance objectives, and managerial challenges. Besides introducing the logic of opportunity, we indicate the central insight that competitive advantage stems from the linkages among resources, not just their attributes. Thus, while VRIN resources may be useful for creating advantage, they may be neither necessary nor sufficient for competitive advantage to ensue. Copyright © 2007 John Wiley & Sons, Ltd.