Competitive Benefit: Is It Lasting or Temporary in Today's Powerful Environment?

Competitive Benefit: Sustainable or perhaps Temporary in the current Dynamic Environment?

Reginald M. Beal University of Business and Market Florida A& M University Tallahassee, FL 32307 Tel: (850) 561-2339 Fax: (850) 599-3533 E-mail: [email protected] com

Competitive Edge: Sustainable or Temporary in the current Dynamic Environment?

Spirited debate in the field of tactical management pay as to whether competitive advantage can be sustainable or perhaps merely temporary in today's very dynamic surroundings. The objectivity of the controversy, however , is affected with a lack of specificity regarding the conditions " sustainable” and " temporary. ” That is, the quantity of time or duration of a sustained or perhaps temporary competitive advantage is never specified by a writer. This kind of presentation offers an approach intended for determining the period of time that distinguishes sustained competitive advantage from momentary competitive benefits. The procedure entails determining whether a competitive advantage denoted by a competitive strategy yields above-average results in one or maybe more industry your life cycle stages – intro, growth, maturity, and decline. Competitive tactics providing above-average returns in just one level are classified as short-term advantages while competitive approaches providing this sort of returns much more than one stage will be classified as sustained competitive advantages. Generic and mixture competitive strategies are examined.

Competitive Edge: Sustainable or Temporary in the current Dynamic Environment? Introduction Is definitely competitive benefits sustainable or merely temporary in today's energetic, hypercompetive surroundings as many strategy researchers proclaim? Although this question is very important to approach researchers and managers, as well, we have not any clear solution to it. Two major road blocks stand in the way of arriving at a definitive answer. First, there is absolutely no common definition of the concept of competitive advantage. Customarily in the field of tactical management, competitive advantage continues to be defined as a good consistently getting a higher rate of return than its rivals (Grant, 1991; Schoemaker, 1990). Recently, yet , with the advent of the resource-based view (RBV) as an important theoretical platform in the proper management discipline, alternative explanations of competitive advantage possess gained acceptance, introducing unconformity. Second, the terms, " sustainable” and " temporary, ” lack specificity. That is, the amount of time or duration of a endured or temporary competitive benefit is never particular by advocates of the traditional view or the RBV. Followers of the classic view use such eclectic terms as " long-term” and " fleeting” to spell out sustained and temporary, correspondingly, leaving someone to suppose, for example , how much time is " long term” – 12 months, two years, or even more? Proponents of the RBV enough time issue of the time duration of durability altogether by simply asserting a sustained competitive advantage is available only so long as another company is not able to replicate a firm's competitive advantage (Barney, 1991). This proposition assumes that the particular competitive advantage can be idiosyncratic (i. e., which it can only be possessed with a single firm). However , while Eisenhardt and Martin (2001) point out multiple firms own effective powerful capabilities that have common features. Effective active capabilities as resources happen to be sources of competitive advantage. The commonality of dynamic methods across

companies suggests that " there are multiple paths (equifinality) to the same dynamic capabilities…. Equifinality makes inimitability irrelevant …to sustained advantage” (2001: 11091110). We concur using their argument. To overcome the aforementioned problems, I propose an approach that determines if competitive positive aspects are sustainable or non permanent by examining the performance of competitive strategies in each of four industry life cycle periods – launch, growth, maturity, and drop. In this...

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