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MANAGING MULTIPLE SOURCES OF COMPETITIVE ADVANTAGE IN A COMPLEX COMPETITIVE ENVIRONMENT

MANAGING MULTIPLE SOURCES OF COMPETITIVE ADVANTAGE IN A COMPLEX COMPETITIVE ENVIRONMENT

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The aim of this article is to review the literature on the topic of sustained and temporary competitive advantage creation, specifically in dynamic markets, and to propose further research possibilities. After having analyzed the main trends and scholars’ works on the subject, it was concluded that a firm which has been experiencing erosion of its core sources of economic rent generation, should have diversified its strategy portfolio in a search for new sources of competitive advantage, ones that could compensate for the decline of profits provoked by intensive competitive environments. This review concludes with the hypothesis that firms who have decided to manage complex competitive environments should have developed a multiple strategies framework approach. As a result of the literature review, we propose a reconceptualization of the construct hypercompetition adding the concept of market complexity, which allowed us to raise important further research possibilities.
The aim of this article is to review the literature on the topic of sustained and temporary competitive advantage creation, specifically in dynamic markets, and to propose further research possibilities. After having analyzed the main trends and scholars’ works on the subject, it was concluded that a firm which has been experiencing erosion of its core sources of economic rent generation, should have diversified its strategy portfolio in a search for new sources of competitive advantage, ones that could compensate for the decline of profits provoked by intensive competitive environments. This review concludes with the hypothesis that firms who have decided to manage complex competitive environments should have developed a multiple strategies framework approach. As a result of the literature review, we propose a reconceptualization of the construct hypercompetition adding the concept of market complexity, which allowed us to raise important further research possibilities.

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Categories:Types, School Work
Published by: Alexandre Lapersonne on Aug 04, 2014
Copyright:Traditional Copyright: All rights reserved

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08/04/2014

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