Towards a Dynamic Resource-Based View: Insights from Austrian Capital and Entrepreneurship Theory
SMG Working Paper No. 6/2006
39 Pages Posted: 24 Apr 2007
Date Written: April 2006
The dominant view in the strategic management field is the resource-based view ("RBV"). It has often been observed that the RBV is lacking in the dynamic dimension. For example, processes of building competitive advantages by means of combining existing complementary resources in novel ways are not inquired into. We argue that the RBV may profitably draw on Austrian (Misesian) and Knightian insights in entrepreneurship and capital theory, particularly in its Lachmannian manifestation, in order to strengthen its dynamic components. We link the RBV and Austrian ideas in the context of the theory of complex systems pioneered by Herbert Simon. We draw a number of implications for strategic management from this synthesis, notably into resource value and sustainability of competitive advantage.
Keywords: Resource-based view, Austrian capital theory, complexity theory, entrepreneurs, competitive advantage
JEL Classification: B53, D21, L23, M1
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