Premium
The Achilles Heel of Firm Strategy: Resource Weaknesses and Distinctive Inadequacies
Author(s) -
Page West III G.,
DeCastro Julio
Publication year - 2001
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/1467-6486.00243
Subject(s) - competitive advantage , competence (human resources) , strengths and weaknesses , business , strategic management , resource based view , resource (disambiguation) , industrial organization , explanatory power , sustainability , knowledge management , marketing , economics , management , psychology , computer science , social psychology , computer network , philosophy , epistemology , ecology , biology
Two separately developed views within the strategic management literature elucidate the source of a firm's competitive advantage based on the internal attributes of the firm: the resource‐based view (Wernerfelt, 1984) and the distinctive competence view (Selznick, 1957). As developed in the literature, however, both views neglect important dimensions which inhibit the achievement of competitive advantage. These dimensions are resource weaknesses and distinctive inadequacies. Accounting for weaknesses and inadequacies exposes important choice‐sets confronting management in making resource investments, and of time‐related dimensions in developing sustainable advantage. Considering the effects of weaknesses and inadequacies provides insight on the limits to firm growth and to sustainability of competitive advantage. Theory on developing competitive advantage may lack explanatory and predictive power if it excludes these perspectives, which if included may also improve prescription for practitioners.