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.
Keywords
DivestmentStock (firearms)BusinessSustainabilityAsset (computer security)Diversification (marketing strategy)Financial economicsEconomicsAlternative assetMicroeconomicsIndustrial organizationCapital asset pricing modelFinanceConsumption-based capital asset pricing modelComputer scienceMarketing
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Asset Stocks and Sustained Competitive Advantage: A Comment
In their paper, Dierickx and Cool suggest that the strategic factor markets model developed in Barney (Barney, J. B. 1986a. Strategic factor markets: Expectations, luck, and bus...
Publication Info
- Year
- 1989
- Type
- article
- Volume
- 35
- Issue
- 12
- Pages
- 1504-1511
- Citations
- 8259
- Access
- Closed
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Cite This
Ingemar Dierickx,
Karel Cool
(1989).
Asset Stock Accumulation and Sustainability of Competitive Advantage.
Management Science
, 35
(12)
, 1504-1511.
https://doi.org/10.1287/mnsc.35.12.1504
Identifiers
- DOI
- 10.1287/mnsc.35.12.1504