The Competitive Advantage of Firms in Environments of Restricted Bargaining and Adjustment Costs

Posted: 18 Mar 2012

See all articles by Vicente Salas-Fumás

Vicente Salas-Fumás

University of Zaragoza - Department of Business Administration and Organization

Multiple version iconThere are 2 versions of this paper

Date Written: March 16, 2012

Abstract

This paper re-examines the results from Value Based and Resource Based approaches to the meaning and measurement of competitive advantage, under the realistic assumptions of restricted bargaining that limit the side payments among buyers and sellers, and adjustment costs that set a time frame for the decisions leading to the advantages. The extension modifies some of the existing results on competitive advantage from these theories. In the Value Based approach the paper challenges the prediction that a necessary condition for value appropriation by a market player is that the player creates positive incremental value. With respect to the Resource Based approach the paper challenges that this theory of the firm provides an “efficiency” perspective on competitive advantage.

Keywords: competitive advantage, value creation, unrestricted and restricted bargaining, adjustment cost

JEL Classification: M21

Suggested Citation

Salas-Fumás, Vicente, The Competitive Advantage of Firms in Environments of Restricted Bargaining and Adjustment Costs (March 16, 2012). Available at SSRN: https://ssrn.com/abstract=2025118

Vicente Salas-Fumás (Contact Author)

University of Zaragoza - Department of Business Administration and Organization ( email )

Dr. Cerrada 1
5005 Zaragoza
Spain
+34 976 761803 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
515
PlumX Metrics