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

See all articles by Nicolai J. Foss

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation

Ibuki Ishikawa

affiliation not provided to SSRN

Date Written: April 2006

Abstract

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

Suggested Citation

Foss, Nicolai J. and Ishikawa, Ibuki, Towards a Dynamic Resource-Based View: Insights from Austrian Capital and Entrepreneurship Theory (April 2006). SMG Working Paper No. 6/2006, Available at SSRN: https://ssrn.com/abstract=982102 or http://dx.doi.org/10.2139/ssrn.982102

Nicolai J. Foss (Contact Author)

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

Kilen
Frederiksberg, 2000
Denmark

Ibuki Ishikawa

affiliation not provided to SSRN

No Address Available

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