Open AccessEXPLORING COGNITIVE RENT : A STRATEGY FOR COUNTERING ALGORITHMS
Author(s) -
Sébastien Bourbon
Publication year - 2021
Publication title -
management and data science
Language(s) - English
Resource type - Journals
ISSN - 2555-7033
DOI - 10.36863/mds.a.14822
Subject(s) - exploit , competitive advantage , quality (philosophy) , resource (disambiguation) , cognition , industrial organization , computer science , risk analysis (engineering) , business , marketing , computer security , computer network , philosophy , epistemology , neuroscience , biology
Covid-19 and the increasing risk of disruption caused by algorithms have led companies to reconsider their market strategy and seek out new competitive advantages. Building up cognitive rent could be one way of achieving this, as long as businesses are able to successfully explore and exploit the knowledge they acquire. This article focuses exclusively on exploring and acquiring cognitive rent, using the resource-based theory of the firm that considers knowledge as a way to drive a company’s ability to compete. Cognitive rent offers theoretical, operational, and strategic elements that enable organisations to improve the quantity and the quality of their resources. This potentially provides inroads for new competitive advantage and protection against the risk of market platformisation.