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Understanding opportunity discovery and sustainable advantage: the role of transaction costs and property rights
Author(s) -
Foss Kirsten,
Foss Nicolai J.
Publication year - 2008
Publication title -
strategic entrepreneurship journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 5.061
H-Index - 46
eISSN - 1932-443X
pISSN - 1932-4391
DOI - 10.1002/sej.49
Subject(s) - transaction cost , property rights , argument (complex analysis) , database transaction , business , resource (disambiguation) , industrial organization , value (mathematics) , key (lock) , property (philosophy) , strategic management , resource based view , opportunity cost , law and economics , economics , microeconomics , marketing , competitive advantage , computer science , finance , computer security , computer network , biochemistry , chemistry , philosophy , epistemology , machine learning , programming language
To add insight in new value creation, opportunity discovery should be integrated with strategic management theory. Based on the resource‐based view and the economics of property rights, we build a framework that accomplishes this. Our key argument is that property rights and transaction costs are important antecedents of opportunity discovery. We identify two mechanisms that establish this influence and examine alternative ways in which knowledge, transaction costs, and property rights influence opportunity discovery and sustainable advantage. Copyright © 2008 Strategic Management Society.