Content area
Full Text
Nicole P. Hoffman is Ph.D. Candidate in Management and Marketing, Culverhouse College of Commerce and Business Administration, The University of Alabama, 105 Alston Hall, P.O. Box 870225, Tuscaloosa, Alabama 35487-0225, (205) 348-6696, (205) 348-6695 (fax), [email protected]
An Examination of the "Sustainable Competitive Advantage" Concept: Past, Present, and Future
The fundamental basis of long-run success of a firm is the achievement and maintenance of a sustainable competitive advantage (hereafter SCA). Indeed, understanding which resources and firm behaviors lead to SCA is considered to be the fundamental issue in marketing strategy (Varadarajan and Jayachandran, 1999). A competitive advantage (hereafter CA) can result either from implementing a value-creating strategy not simultaneously being employed by current or prospective competitors or through superior execution of the same strategy as competitors (Bharadwaj, Varadarajan, and Fahy 1993). The CA is sustained when other firms are unable to duplicate the benefits of this strategy (Barney 1991). Because of its importance to the long-term success of firms, a body of literature has emerged which addresses the content of SCA as well as its sources and different types of strategies that may be used to achieve it.
The purpose of this paper is to trace the origins of the SCA concept, provide a conceptual definition of SCA, and discuss how it has been applied to theories and ideas related to marketing strategy. This paper is organized in the following manner: First, a review of the literature pertaining to the concept of "SCA" is presented. Early contributors to the topic are cited, and a conceptual definition and potential sources of SCA are presented. Then, the construct is linked to other concepts that exist in the strategy field, including market orientation, customer value, relationship marketing, and business networks. A theoretical model of how SCA may be achieved in a network setting is provided, along with a brief discussion of problems related to both theory and measurement of SCA. The paper concludes with directions for future research.
CONTRIBUTIONS TO THE SCA LITERATURE
Many researchers have contributed (either directly or indirectly) to the literature pertaining to SCA. Table 1 presents an overview of these authors along with their main contributions to the concept of SCA. Specific contributions, including a focus on distinctiveness or differentiation, potential SCA sources, and...