| | |  | | | | Record from Web of Science® | | | | | | |
| Constructing competitive advantage: The role of firm-constituent interactions |
|
|
| Author(s): Rindova VP, Fombrun CJ |
| Source: STRATEGIC MANAGEMENT JOURNAL Volume: 20 Issue: 8 Pages: 691-710 Published: AUG 1999 |
| Times Cited: 60 References: 104 |
| Abstract: Current models of competitive advantage emphasize economic factors as explanations for a firm's success bur ignore sociocognitive factors. This paper integrates economic and cognitive perspectives, and shows how firms and constituents jointly construct the environments in which firms compete. We argue that competitive advantage is a systemic outcome that develops as firms and constituents participate in six processes that entail, not only use and exchange of resources, but also communication about and interpretations of those exchanges. The interpretations that firms and constituents make of competitive interactions affect decisions about how to exchange and use resources. As interpretations and evaluations of a given firm fluctuate, so do the resources the firm has access to and its competitive advantage in the marketplace. The actions and interpretations of constituents and rivals produce the shifting terrain on which competition unfolds. We illustrate these dynamics with a discussion of IBM's changing competitive advantage in the computer industry in the 1980s. Copyright (C) 1999 John Wiley & Sons, Ltd. |
| Document Type: Review |
| Language: English |
| Reprint Address: Fombrun, CJ (reprint author), NYU, Leonard N Stern Sch Business, 44 W 4th St, New York, NY 10012 USA |
Addresses:
1. NYU, Leonard N Stern Sch Business, New York, NY 10012 USA
2. Univ Washington, Sch Business Adm, Seattle, WA 98195 USA |
| Publisher: JOHN WILEY & SONS LTD, BAFFINS LANE CHICHESTER, W SUSSEX PO19 1UD, ENGLAND |
| Subject Category: Business; Management |
| IDS Number: 218TC |
| ISSN: 0143-2095 |
|
| | | | | | | | | Record from Web of Science® | | | | | | | | | |