Professor of Strategic Management
Resource-based View; Resource Deployment;Competitive Implications of Resources;Competitive Advantage;Formal Modeling; European Competitiveness; Europe;
JOURNAL ARTICLE | Strategic Management Journal | 34 | April 2013
The Competitive Implications of the Deployment of Unique Resources
The ‘resource-based’ view focuses on unique resources as the fundamental sources of competitive advantage and superior profits.The authors use a game-theoretic model to analyze the impact of the deployment of unique resources on product market competition, and the impact of unique resources and sustainable competitive advantages on profits when the competitive implications of resource deployment are taken into account.The authors find that some of the core propositions of the resource-based view do not necessarily hold when the impact of resource deployment on product market competition is explicitly considered. Specifically, the accumulation and deployment of unique resources does not necessarily increase the firm's profit and the difference between its profit and competitors' profits.Furthermore, achieving a sustainable competitive advantage does not necessarily lead to higher profits.