Understanding Opportunity Discovery and Sustainable Advantage: The Role of Transaction Costs and Property Rights

SMG Working Paper No. 18/2008

54 Pages Posted: 6 May 2008

See all articles by Kirsten Foss

Kirsten Foss

Copenhagen Business School - Department of Industrial Economics & Strategy (IVS)

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation

Date Written: April 26, 2008

Abstract

To add insight in new value creation, opportunity discovery should be integrated with strategic management theory. Based on the resource-based view and the economics of property rights we build a framework that accomplishes this. Our key argument is that property rights and transaction costs are important antecedents of opportunity discovery. We identify two mechanisms that establish this influence, and examine alternative ways in knowledge, transaction costs, and property rights influence opportunity discovery and sustainable advantage.

Keywords: Opportunity discovery, sustainable advantage, transaction costs, property rights, the resource-based view, knowledge.

Suggested Citation

Foss, Kirsten and Foss, Nicolai J., Understanding Opportunity Discovery and Sustainable Advantage: The Role of Transaction Costs and Property Rights (April 26, 2008). SMG Working Paper No. 18/2008, Available at SSRN: https://ssrn.com/abstract=1129685 or http://dx.doi.org/10.2139/ssrn.1129685

SI CBS (Contact Author)

Copenhagen Business School - Department of Strategic Management and Globalization ( email )

Kilevej 14
Frederiksberg, 2000
Denmark
+45 3815 3030 (Phone)

Kirsten Foss

Copenhagen Business School - Department of Industrial Economics & Strategy (IVS) ( email )

Howitzvej 60, 6
Frederiksberg, DK-2000
Denmark

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilen
Frederiksberg, 2000
Denmark

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