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This study explores whether managerial ability (MA) promotes firms’ competitive advantages (CAs). By combining data collected through a questionnaire survey and a secondary database from 181 public firms in Taiwan, the results show that superior MA enhances CAs. Moreover, this research presents the mechanisms of value and rareness and offers evidence that MA promotes CAs through these mechanisms. More importantly, this research further finds that entrepreneurial strategy making (ESM) positively strengthens these mediated effects such that the indirect effects are stronger when ESM is strong rather than weak.

How do Firms with Management Ability Promote Competitive Advantages? An Integrated Model from Entrepreneurial Strategy Making and Internal Resources