Premium
Position, leverage and opportunity: a typology of strategic logics linking resources with competitive advantage
Author(s) -
Bingham Christopher B.,
Eisenhardt Kathleen M.
Publication year - 2007
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.1386
Subject(s) - competitive advantage , leverage (statistics) , typology , resource based view , industrial organization , business , strategic management , position (finance) , resource (disambiguation) , economics , knowledge management , microeconomics , marketing , computer science , sociology , computer network , finance , machine learning , anthropology
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.