Competitive Advantage and Its Conceptual Development
Business Information Review, 2009, Vol. 26, No. 2, pp. 93-111, 2008
21 Pages Posted: 3 Mar 2010
Date Written: 2008
This paper is interested in exploring the competitive advantage of businesses. Current understanding of competitive advantage arises from the strategic management paradigm. However, the early theory that underpins this comes from optimising economic theory, the inadequacy of which led to the resource-based view. The next development came from knowledge management, which sees knowledge as a valuable strategic resource recognising the need to look more inside the organisation qualitatively. However, a new paradigm has arisen that couples knowledge processes with cybernetics. This recognises that achieving competitive advantage requires that an organisation’s pathologies must be recognised and addressed.
Keywords: strategic management, competitive advantage, economic theory, knowledge management, cybernetics, viable systems theory
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