Online citations, reference lists, and bibliographies.
← Back to Search

An Examination Into The Causal Logic Of Rent Generation: Contrasting Porter's Competitive Strategy Framework And The Resource-based Perspective

Yiannis E. Spanos, S. Lioukas
Published 2001 · Economics

Cite This
Download PDF
Analyze on Scholarcy
Share
In this study we revisit some fundamental questions that are increasingly at the heart of current strategic management discourse regarding the relative impact of industry and firm-specific factors on sustainable competitive advantage. We explore this issue by referring to respective assertions of two major perspectives that dominate the literature over the last two decades: the Porter framework of competitive strategy and the more recent resource-based view of the firm. A composite model is proposed which elaborates upon both perspectives' divergent causal logic with respect to the conditions relevant for firm success. Empirical findings suggest that industry and firm specific effects are both important but explain different dimensions of performance. Where industry forces influence market performance and profitability, firm assets act upon accomplishments in the market arena (i.e., market performance), and via the latter, to profitability. The paper concludes with directions for future research that will seek to integrate both content and process aspects of firm behavior. Copyright © 2001 John Wiley & Sons, Ltd.
This paper references
10.1002/SMJ.4250140402
A sociological view on why firms differ
G. Carroll (1993)
10.1037/0033-2909.107.2.238
Comparative fit indexes in structural models.
P. Bentler (1990)
10.1002/SMJ.4250090105
Planned patterns of strategic behavior and their relationship to business-unit performance†
R. J. Robinson (1988)
10.2307/2393080
Dimensions of Organizational Task Environments.
G. Dess (1984)
10.1287/MNSC.32.10.1231
Strategic Factor Markets: Expectations, Luck, and Business Strategy
J. Barney (1986)
10.1177/014920639201800106
A Competency-Based Model of Sustainable Competitive Advantage: Toward a Conceptual Integration
Augustine A. Lado (1992)
10.1177/017084068600700303
Porter's (1980) Generic Strategies and Performance: An Empirical Examination with American Data
Danny Miller (1986)
Do Markets Differ Much
R. Schmalensee (1984)
10.1002/SMJ.4250140105
Strategic assets and organizational rent
R. Amit (1993)
10.5465/256654
The Resource-Based View of the Firm in Two Environments: The Hollywood Film Studios From 1936 to 1965
Danny Miller (1996)
10.2307/1882217
Relation of Profit Rate to Industry Concentration: American Manufacturing, 1936–1940
J. S. Bain (1951)
10.1287/ORSC.7.4.375
Prospering in Dynamically-competitive Environments: Organisational Capability as Knowledge Creation
R. Grant (1996)
10.5860/choice.33-3996
Wellsprings of Knowledge: Building and Sustaining the Sources of Innovation
D. Leonard-barton (1995)
10.1177/014662168500900101
Hierarchically Nested Covariance Structure Models for Multitrait-Multimethod Data
K. Widaman (1985)
10.1016/B978-0-7506-9718-7.50010-X
The Tacit Dimension
M. Polanyi (1966)
10.1007/978-3-642-51565-1_34
A New Approach to Consumer Theory
Kelvin J. Lancaster (1966)
10.5465/AMR.1990.4308277
Causal Ambiguity, Barriers to Imitation, and Sustainable Competitive Advantage
R. Reed (1990)
10.2307/2068433
Mail and telephone surveys : the total design method
D. Dillman (1979)
10.1093/ICC/3.3.607
The evolution of integrative capability: innovation in cardiovascular drug discovery
R. Henderson (1994)
The design of organizations
P. Khandwalla (1977)
10.2307/3380432
The Concept of Corporate Strategy
K. Andrews (1971)
10.5465/AMR.1986.4306261
Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?
J. Barney (1986)
10.1002/SMJ.4250050306
Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit
G. Dess (1984)
10.1002/(sici)1097-0266(199707)18:1+<15::aid-smj916>3.0.co;2-1
HOW MUCH DOES INDUSTRY MATTER , REALLY ?
A. McGahan (1997)
10.1177/002224377701400320
Estimating Nonresponse Bias in Mail Surveys
J. S. Armstrong (1977)
Estimation of Structure-Profit Relationships with Application to the Food Processing Sector
Blake Imel (1971)
10.2307/2522562
Organizations and Environments
H. Aldrich (1979)
10.2307/1924568
Market Share and Rate of Return
Bradley T. Gale (1972)
10.1016/S0742-3322(00)17018-4
Firm Resources and Sustained Competitive Advantage
J. Barney (1991)
10.1086/226424
The Population Ecology of Organizations
M. Hannan (1977)
10.1002/SMJ.4250121007
Strategizing, economizing, and economic organization
O. Williamson (1991)
10.1108/EB039467
The generic strategy trap.
D. Miller (1992)
10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT
D. Teece (1997)
10.1016/0148-2963(94)00060-R
The management of resources and the resource of management
J. Mahoney (1995)
10.1177/017084068600700103
Porter's (1980) Generic Strategies and Performance: An Empirical Examination with American Data
Danny Miller (1986)
Competitive Strategy: Techniques for Analyzing Industries and Competitors
Michael E. Porter (1980)
10.5465/AMBPP.1976.4975788
The Role of Managerial Perceptions in Organizational Adaptation: An Exploratory Study.
C. Snow (1976)
10.1177/014920639101700112
Managing Culture as a Competitive Resource: An Identity-Based View of Sustainable Competitive Advantage
C. Fiol (1991)
Psychometric Theory (2nd ed), New York: McGraw-Hill.
J. Nunnally (1978)
10.1002/SMJ.4250140205
Entrepreneurship and the concept of fit: A model and empirical tests
J. L. Naman (1993)
10.5465/AMBPP.1977.4977040
A Contextual Model of Strategic Decision Making in Organizations.
D. Hambrick (1977)
10.1002/(SICI)1097-0266(199705)18:5<375::AID-SMJ876>3.0.CO;2-7
Information technology as competitive advantage: the role of human
T. Powell (1997)
10.1177/014920639301900105
Efficiency v. Structure-Conduct-Performance: Implications for Strategy Research and Practice
A. Mcwilliams (1993)
10.1287/MNSC.43.6.856
The Influence Prism in SMEs: The Power of CEOs' Perceptions on Technology Policy and Its Organizational Impacts
L. Lefebvre (1997)
10.1002/SMJ.4250120303
A longitudinal study of the cause and consequences of changes in diversification in the U.S. pharmaceutical industry 1977–1986
C. Hill (1991)
10.2307/2392666
Organizational Adaptation: Strategic Choice and Environmental Determinism.
L. G. Hrebiniak (1985)
10.1177/002224378802500207
An Updated Paradigm for Scale Development Incorporating Unidimensionality and Its Assessment
David W. Gerbing (1988)
10.1177/003803857200600101
Organizational Structure, Environment and Performance: The Role of Strategic Choice
J. Child (1972)
10.1002/SMJ.4250171110
Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal (17), pp.
Rm Grant (1996)
10.1002/(sici)1097-0266(199707)18:1+<5::aid-smj930>3.0.co;2-i
THE INTERACTIONS OF ORGANIZATIONAL AND COMPETITIVE INFLUENCES ON STRATEGY AND..
R. Henderson (1997)
10.1177/014920639101700109
A Historical Comparison of Resource-Based Theory and Five Schools of Thought Within Industrial Organization Economics: Do We Have a New Theory of the Firm?
K. R. Conner (1991)
10.1002/SMJ.4250140303
The cornerstones of competitive advantage: A resource‐based view
Margaret A. Peteraf (1993)
10.1002/SMJ.4250150402
How strategy‐making processes can make a difference
S. Hart (1994)
10.1002/SMJ.4250070407
The market share‐profitability relationship: An empirical assessment of major assertions and contradictions
J. Prescott (1986)
10.1002/(SICI)1097-0266(1998120)19:12<1193::AID-SMJ5>3.0.CO;2-F
Resource recombinations in the firm: knowledge structures and the potential for schumpeterian innovation
D. C. Galunic (1998)
The social psychology of organizing
K. Weick (1969)
10.5465/256040
Porter's (1980) Generic Strategies as Determinants of Strategic Group Membership and Organizational Performance
G. Dess (1984)
10.1002/(SICI)1097-0266(199803)19:3<211::AID-SMJ947>3.0.CO;2-T
Firm and industry effects within strategic management: an empirical examination
Alfredo J. Mauri (1998)
10.2307/41165082
Economic Analysis and Strategic Management
D. Teece (1984)
10.1177/002224298304700204
Product Quality, Cost Position and Business Performance: A Test of Some Key Hypotheses
L. Phillips (1983)
10.1002/SMJ.4250150910
Research Note: How Valuable are Organizational Capabilities?
D. Collis (1994)
10.1002/SMJ.4250150902
Competitive Organizational Behavior: Toward an Organizationally‐Based Theory of Competitive Advantage
J. Barney (1994)
10.1002/SMJ.4250150907
Knowledge Integration and the Locus of Learning: An Empirical Analysis
G. Pisano (1994)
10.1016/0048-7333(86)90027-2
Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy
D. Teece (1993)
10.5465/256460
A Causal Model of Linkages Among Environmental Dimensions, Macro Organizational Characteristics, and Performance
Barbara W. Keats (1988)
10.1177/002224378802500104
Environmental Determinants of Decision-Making Uncertainty in Marketing Channels
Ravi S. Achrol (1988)
10.1002/SMJ.4250070204
Strategic Groups: Theory, Research and Taxonomy
J. McGee (1986)
10.1002/SMJ.4250140905
BOARD OF DIRECTOR INVOLVEMENT IN RESTRUCTURING: THE EFFECTS OF BOARD VERSUS MANAGERIAL CONTROLS
R. A. Johnson (1993)
10.1002/SMJ.4250121008
Towards a dynamic theory of strategy
M. Porter (1991)
10.2307/794056
Barriers to new competition
Sidney Schoeffler (1956)
10.1016/B978-0-7506-7088-3.50005-X
Competing on Resources: Strategy in the 1990s
D. Collis (1999)
10.1002/SMJ.4250130505
The resource-based view within the conversation of strategic management
J. Mahoney (1992)
10.1002/SMJ.4250100405
Choice and determinism: A test of Hrebiniak and Joyce's framework on strategy‐environment fit
M. Lawless (1989)
10.1287/MNSC.35.12.1504
Asset stock accumulation and sustainability of competitive advantage
Ingemar Dierickx (1989)
10.2307/2286442
Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences
J. Cohen (1975)
10.1002/SMJ.4250050207
A Resource-Based View of the Firm
B. Wernerfelt (1984)
10.1287/ORSC.3.3.383
Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology
B. Kogut (1992)
10.1002/SMJ.4250120302
How much does industry matter
R. Rumelt (1991)
10.1002/SMJ.4250120908
Competition for competence and interpartner learning within international strategic alliances
G. Hamel (1991)
10.1111/J.1467-6486.1996.TB00796.X
Research In Strategy, Economics, and Michael Porter*
Nicolai J. Foss (1996)
10.1002/(SICI)1097-0266(199607)17:7<549::AID-SMJ827>3.0.CO;2-R
AN EMPIRICAL TEST OF THE RESOURCE-BASED THEORY: STRATEGIC REGULATION IN THE DUTCH AUDIT INDUSTRY
S. Maijoor (1996)
10.1002/SMJ.4250100502
DETERMINANTS OF FIRM PERFORMANCE: THE RELATIVE IMPORTANCE OF ECONOMIC AND ORGANIZATIONAL FACTORS
G. S. Hansen (1989)
10.1287/MNSC.36.10.1143
Determinants of Financial Performance: A Meta-Analysis
N. Capon (1990)
10.1287/ORSC.5.1.14
A Dynamic Theory of Organizational Knowledge Creation
I. Nonaka (1994)
10.1177/104225878801200304
Using Subjective Evaluations of Organizational Performance in Small Business Research
H. Sapienza (1988)
Competitive Advantage: Creating and Sustaining Superior Performance
M. E. Porter (1985)
10.5465/AMR.1999.1580445
A Resource-Based View of Product Development
G. Verona (1999)
10.1177/014920638701300109
Measurement of Business Economic Performance: An Examination of Method Convergence
N. Venkatraman (1987)
10.1002/(SICI)1097-0266(199908)20:8<763::AID-SMJ46>3.0.CO;2-D
Determinants of Executive Beliefs: Comparing Functional Conditioning and Social Influence
P. Chattopadhyay (1999)
10.2307/3151312
Evaluating structural equation models with unobservable variables and measurement error.
C. Fornell (1981)
10.1002/(SICI)1097-0266(199602)17:2<109::AID-SMJ796>3.0.CO;2-P
PUBLICATION RECORDS AND TENURE DECISIONS IN THE FIELD OF STRATEGIC MANAGEMENT
S. Park (1996)
10.1007/978-1-349-11336-1
The Competitive Advantage Of Nations
M. E. Porter (1990)
10.1016/S0024-6301(96)90295-2
The theory of the growth of the firm
E. Penrose (1980)
The economics of industrial organization
W. Shepherd (1979)



This paper is referenced by
10.1016/J.JBUSRES.2008.10.021
Unpacking the relationship between an innovation strategy and firm performance: The role of task conflict and political activity
D. Clercq (2009)
10.2457/SRS.40.921
Market Orientation and Technology Innovation in Korean IT SMEs: The Moderating Role of Cross-functional Cooperation and Cooperation with Outside Organizations
Jin-Kyo Shin (2010)
10.1057/palgrave.jit.2000020
Performance outcomes of strategic and IT competencies alignment
A. Croteau (2004)
Growth patterns of medium-sized, fast-growing firms
R. Kemp (2001)
Opening open innovation : a multi-theoretical perspective on intermediaries in online community-based innovation
K. Randhawa (2018)
Integrating value-adding mobile services into an emergency management system for tourist destinations
H. Wagner (2009)
10.1108/IJOPM-08-2015-0472
Executing strategy through comprehensive performance measurement systems
P. Micheli (2017)
10.1016/S0166-4972(02)00156-6
Modeling corporate entrepreneurship as rent-seeking competition
Morgan P. Miles (2003)
Competitive Strategies for Small-sized Manufacturing Firms in High-technology Industries
N. Namiki (2010)
10.1108/01409170710833330
Measuring the Effectiveness of Managerial Action in SMEs: An Empirical Analysis of Management's Response to Industry Competitive Forces
G. Metts (2007)
TESIS DOCTORAL THE STATIC AND DYNAMIC DIMENSIONS OF HETEROGENEOUS FIRM PERFORMANCE
A. Javier (2008)
EL CLIMA ORGANIZACIONAL EN LA GESTIÓN EMPRESARIAL: SU CONSIDERACIÓN EN EL DISEÑO DEL BALANCED SCORECARD
F. D. C. Económicas (2009)
10.1111/J.1936-4490.2004.TB00321.X
The Effect of Environmental Turbulence and Leader Characteristics on International Performance: Are Knowledge‐Based Firms Different?
O. Kuivalainen (2009)
Effect of Competitive Strategies on the Performance of Insurance Companies in Kenya
Faith M Muia (2017)
Making Sense of the Resource-Based View?
S. Tywoniak (2007)
Influence of Adaptive Organization Structure Practices on Performance of Commercial based State Parastatals
(2018)
Strategic positioning and organizational performance of the top five oil companies in Kenya
Millicent W Munene (2013)
GSB WORKING PAPER NO . 60 ACCOUNTING FOR PERFORMANCE VARIATION : HOW IMPORTANT ARE INTANGIBLE RESOURCES ? by Dr
Jeremy Galbreath (2008)
Industry and firm effects on the performance of financial services mediated by competitive advantage in Ethiopia
Yifru Tafesse Bekele (2018)
Enabling marketing and innovation capability in the digital economy
Duygu Okten (2013)
10.1016/S0166-4972(03)00091-9
Strategic planning—a comparison of high and low technology manufacturing small firms
N. O'Regan (2005)
10.1016/J.EMJ.2012.10.001
Managing the fit between the views of competitive strategy and the strategic role of service operations
Bob Lillis (2013)
Hybrid competitive strategies, organizational structure, and firm performance
Eva M. Pertusa-Ortega (2008)
10.1002/bse.2629
Proactive environmental strategy and firm performance at the bottom of the pyramid
Samuel Adomako (2020)
10.1108/17574321211207962
Behind brand performance
L. Tuấn (2012)
10.1111/jsbm.12450
Corporate Social Responsibility as a Strategic Opportunity for Small Firms during Economic Crises*
José M. Moneva‐Abadía (2019)
10.1007/S11747-017-0519-8
Strategic goal accomplishment in export ventures: the role of capabilities, knowledge, and environment
S. Spyropoulou (2018)
10.1016/J.IBUSREV.2016.11.006
Marketing capabilities, positional advantage, and performance of born global firms: Contingent effect of ambidextrous innovation
S. Martín (2017)
10.3846/TEDE.2018.3114
A study of the value of ICT in improving corporate performance: a corporate competitiveness view
Virginia Barba-Sánchez (2018)
10.1016/B978-0-08-044132-0.50020-4
Coping with resource scarcity: the experience of U.K. tourism SMEs.
M. Augustyn (2004)
10.1016/S0749-6826(05)09001-3
Probing into the Nature of Resources: Sustainable Advantages and Appropriable Rents in the U.S. Motion Picture Industry
Jamal Shamsie (2005)
Just How Innovative are New Zealand Firms? Quantifying & Relating Organisational and Marketing Innovation to Traditional Science & Technology Indicators
R. Fabling (2007)
See more
Semantic Scholar Logo Some data provided by SemanticScholar