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Linking intangible resources and competition

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  • Haanes, Knut
  • Fjeldstad, Øystein

Abstract

Recent strategy literature suggests that intangible resources -- in particular competencies and relationships -- are critical drivers of competitive advantage. However, there seems to be a lack of understanding of when certain types of competencies and relationships are most critical. This paper introduces a framework consisting of three fundamental levels of resource-competition. The framework is illustrated through the pharmaceutical industry. We argue that (1) biotech firms mainly engage in entrepreneurial competition; (2) traditional pharmaceutical firms -- here referred to as big-pharma -- increasingly undertake contractual competition and, finally, (3) generic drug makers compete predominantly operationally. The paper argues that intangible resources contribute differently to competitive advantage depending on level of competition.

Suggested Citation

  • Haanes, Knut & Fjeldstad, Øystein, 2000. "Linking intangible resources and competition," European Management Journal, Elsevier, vol. 18(1), pages 52-62, February.
    • Handle: RePEc:eee:eurman:v:18:y:2000:i:1:p:52-62
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    Citations

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    Cited by:

    1. Jiang, Crystal X. & Yang, Qin & Li, Sali & Wang, Yong, 2011. "The moderating effect of foreign direct investment intensity on local firms' intangible resources investment and performance implications: A case from China," Journal of International Management, Elsevier, vol. 17(4), pages 291-302.
    2. Qin Yang & Crystal X. Jiang & Sali Li, 2010. "Intangible resources, agglomeration effect of FDI intensity, and firm performance: Evidence from Chinese semiconductor firms," Working Papers 56, globADVANTAGE, Polytechnic Institute of Leiria.
    3. Fukuyama, Hirofumi & Matousek, Roman & Tzeremes, Nickolaos G., 2023. "Estimating the degree of firms’ input market power via data envelopment analysis: Evidence from the global biotechnology and pharmaceutical industry," European Journal of Operational Research, Elsevier, vol. 305(2), pages 946-960.
    4. Salina Daud, 2015. "The antecedents of corporate sustainability performance," Proceedings of International Academic Conferences 2704927, International Institute of Social and Economic Sciences.
    5. Mariia A. Molodchik & Carlos Jardon & Angel Barajas, 2015. "The Firm Size Effect On Performance Due To Intangible Resources," HSE Working papers WP BRP 35/MAN/2015, National Research University Higher School of Economics.
    6. Ariyawardana, A. & Bailey, W.C, 2002. "The Relationship between Core Resources and Strategies of Firms: The Case of Sri Lankan Value-Added Tea Producers," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 4, pages 1-19.
    7. Mohammad Zarei, 2017. "Entrepreneurial Tournaments: Towards Disclosing the Rivalry Process Among Corporate Entrepreneurs," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 13(2), pages 33-57.
    8. Johansson, Magnus & Jonsson, Anna, 2012. "The package logic: A study on value creation and knowledge flows," European Management Journal, Elsevier, vol. 30(6), pages 535-551.
    9. Qin Yang & Marcel C. Minutolo, 2016. "The Strategic Approaches for a New Typology of Firm Patent Portfolios," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 1-18, April.
    10. Omar Rabeea Mahdi & Islam A. Nassar, 2021. "The Business Model of Sustainable Competitive Advantage through Strategic Leadership Capabilities and Knowledge Management Processes to Overcome COVID-19 Pandemic," Sustainability, MDPI, vol. 13(17), pages 1-27, September.

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