publication . Article . Other literature type . 1989

Asset Stock Accumulation and Sustainability of Competitive Advantage

Ingemar Dierickx; Karel Cool;
Open Access
  • Published: 01 Dec 1989 Journal: Management Science, volume 35, pages 1,504-1,511 (issn: 0025-1909, eissn: 1526-5501, Copyright policy)
  • Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Abstract
Given incomplete factor markets, appropriate time paths of flow variables must be chosen to build required stocks of assets. That is, critical resources are accumulated rather than acquired in "strategic factor markets" (Barney [Barney, J. 1986. Strategic factor markets: Expectations, luck, and business strategy. Management Sci. (October) 1231--1241.]). Sustainability of a firm's asset position hinges on how easily assets can be substituted or imitated. Imitability is linked to the characteristics of the asset accumulation process: time compression diseconomies, asset mass efficiencies, inter-connectedness, asset erosion and causal ambiguity.
Persistent Identifiers
Subjects
free text keywords: Management Science and Operations Research, Strategy and Management, competitive advantage, resource accumulation, imitation, Asset (economics), IT asset management, Economics, Resource-based view, Diseconomies of scale, Asset turnover, Competitive advantage, Asset management, business.industry, business, Microeconomics, Factor market
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