Linking Competitive Advantage To Competitive Denial: An Alternative Approach To Conceptualising The Incidence Of Competitive Advantage
Daniel Prior
Working Paper No. 06/06
May 2006
About the Author
Mr Daniel Prior - School of Commerce, Charles Sturt University, Australia
Charles Sturt University – Faculty of Business Working Paper Series
Managing Editor: Associate Professor Jayne Bisman, School of Accounting, Bathurst
Editors: Dr P. Mathews, School of Commerce, Wagga Wagga
Associate Professor M. O'Mullane, School of Business, Albury
Dr R. Tierney, School of Marketing and Management, Bathurst
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Table of Contents
- Abstract
- Introduction
- Current Conceptualisations Of Competitive Advantage
- Three Views of Competitive Advantage
- Limitations of Current Competitive Advantage Theory
- An Alternative Conceptualisation Of Competitive Advantage
- Re–establishing the Concept of Competitive Advantage
- Re–Conceptualising the Incidence of Competitive Advantage
- Conclusion
Abstract
The conceptualisations of competitive advantage offered to date have focussed on the link between competitive advantage and extraordinary firm performance. However, this link has not yet been convincingly established. Most studies in this area are based on ambiguous definitions of competitive advantage, with the link between competitive advantage and extraordinary performance not being directly observable (Powell, 2001). This paper presents the argument that conceptualisations of competitive advantage should focus on excluding competitors from opportunities rather than whether firms have achieved extraordinary performance. It is further argued that this approach is the only way that direct evidence of competitive advantage or disadvantage can be found. An alternative competitive advantage model is then presented and is based on the economic advantage paradigm.