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Strategy competence: a key profitability driver
Author(s) -
Pehrsson Anders
Publication year - 2000
Publication title -
strategic change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.527
H-Index - 16
eISSN - 1099-1697
pISSN - 1086-1718
DOI - 10.1002/(sici)1099-1697(200003/04)9:2<89::aid-jsc441>3.0.co;2-e
Subject(s) - profitability index , competence (human resources) , marketing , key (lock) , business , industrial organization , resource based view , resource (disambiguation) , economics , process management , competitive advantage , management , computer science , finance , computer security , computer network
This article presents the concept of strategy competence and the author argues that this is the key driver of long‐term firm profitability. The concept combines the resource‐based and industrial organization views to studying strategy in that the concept comprises two dimensions; relatedness, which reflects the resource‐based view, and market experience, which is an outgrowth of industrial organization. Based on literature reviews and an illustrative company case, altogether five propositions concerning relationships between relatedness and performance, and market experience and performance are put forward. High relatedness and extensive market experience hypothetically constitute the most favourable situation as regards the establishment of an individual business, and this leads to high performance. Copyright © 2000 John Wiley & Sons, Ltd.