Scanning Dynamic Competitive Landscapes: A Market-Based and Resource-Based Framework

33 Pages Posted: 12 Mar 2003

See all articles by Margaret A. Peteraf

Margaret A. Peteraf

Dartmouth College - Tuck School of Business

Mark E. Bergen

University of Minnesota - Carlson School of Management

Date Written: January 2003

Abstract

Heterogeneity among rivals implies that each firm faces a unique competitive set, despite overlapping market domains. This suggests the utility of a firm-level approach to competitor identification and analysis, particularly under dynamic environmental conditions. We take such an approach in developing a market-based and resource-based framework for scanning complex competitive fields. By facilitating a search for functional similarities among products and resources, the framework reveals relevant commonalities in an otherwise heterogeneous competitive set.

Beyond its practical contribution, the paper also advances resource-based theory of competitive advantage. Most notably, we show that resource substitution conditions not only the sustainability of a competitive advantage, but the attainment of competitive advantage as well. With equifinality among resources of different types, the rareness condition for even temporary competitive advantage must include resource substitutes. It is not rareness in terms of resource type that matters, but rareness in terms of resource functionality.

Keywords: Heterogeneity, Competitor Identification, Resource-based Theory, Dynamic Environments, Competitive Advantage

Suggested Citation

Peteraf, Margaret A. and Bergen, Mark E., Scanning Dynamic Competitive Landscapes: A Market-Based and Resource-Based Framework (January 2003). Tuck School of Business at Dartmouth Working Paper No. 03-07. Available at SSRN: https://ssrn.com/abstract=386602 or http://dx.doi.org/10.2139/ssrn.386602

Margaret A. Peteraf (Contact Author)

Dartmouth College - Tuck School of Business ( email )

100 Tuck Hall
Hanover, NH 03755
United States
603-646-1944 (Phone)
603-646-0995 (Fax)

Mark E. Bergen

University of Minnesota - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States
612-624-1821 (Phone)

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