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Position, leverage and opportunity: a typology of strategic logics linking resources with competitive advantage

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  • Christopher B. Bingham

    (University of Maryland, MD, USA)

  • Kathleen M. Eisenhardt

    (Stanford University, CA, USA)

Abstract

The resource-based view's (RBVs) contribution toward understanding competitive advantage remains unfulfilled. A reason is the confounding of the concept of resources with RBVs strategic logic. We disentangle these by developing a typology of strategic logics (i.e., leverage, position, and opportunity) that specify alternative theoretical pathways linking resources with competitive advantage. We clarify their market assumptions, relevant performance objectives, and managerial challenges. Besides introducing the logic of opportunity, we indicate the central insight that competitive advantage stems from the linkages among resources, not just their attributes. Thus, while VRIN resources may be useful for creating advantage, they may be neither necessary nor sufficient for competitive advantage to ensue. Copyright © 2007 John Wiley & Sons, Ltd.

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  • Christopher B. Bingham & Kathleen M. Eisenhardt, 2008. "Position, leverage and opportunity: a typology of strategic logics linking resources with competitive advantage," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 241-256.
    • Handle: RePEc:wly:mgtdec:v:29:y:2008:i:2-3:p:241-256
    DOI: 10.1002/mde.1386
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    Cited by:

    1. Kathleen Eisenhardt, 2013. "Top management teams and the performance of entrepreneurial firms," Small Business Economics, Springer, vol. 40(4), pages 805-816, May.
    2. Andreea N. Kiss & Pamela S. Barr, 2015. "New venture strategic adaptation: The interplay of belief structures and industry context," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1245-1263, August.
    3. Suvi Nenonen & Kaj Storbacka, 2021. "Market-shaping: navigating multiple theoretical perspectives," AMS Review, Springer;Academy of Marketing Science, vol. 11(3), pages 336-353, December.
    4. Jeroen Struben & Brandon H. Lee & Christopher B. Bingham, 2020. "Collective Action Problems and Resource Allocation During Market Formation," Post-Print hal-02927584, HAL.
    5. Saul Estrin & Julia Korosteleva & Tomasz Mickiewicz, 2022. "Schumpeterian Entry: Innovation, Exporting, and Growth Aspirations of Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 46(2), pages 269-296, March.
    6. Tzeng, Cheng-Hua, 2018. "How foreign knowledge spillovers by returnee managers occur at domestic firms: An institutional theory perspective," International Business Review, Elsevier, vol. 27(3), pages 625-641.
    7. Christian Linder & Christian Lechner & Frank Pelzel, 2020. "Many Roads Lead to Rome: How Human, Social, and Financial Capital Are Related to New Venture Survival," Entrepreneurship Theory and Practice, , vol. 44(5), pages 909-932, September.
    8. Sheth, Ananya & Sinfield, Joseph V., 2022. "An analytical framework to compare innovation strategies and identify simple rules," Technovation, Elsevier, vol. 115(C).
    9. Anne W. Fuller, 2018. "Toward a Perspective on R&D Outsourcing: RBV and Firm Performance," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(05), pages 1-14, October.
    10. Rafał Śliwiński, 2012. "Zasoby kształtujące konkurencyjność polskich przedsiębiorstw," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 31-60.
    11. Christopher B. Bingham & Kathleen M. Eisenhardt, 2014. "Response to Vuori and Vuori's commentary on “Heuristics in the strategy context”," Strategic Management Journal, Wiley Blackwell, vol. 35(11), pages 1698-1702, November.
    12. Evila Piva & Cristina Rossi-Lamastra & Alfredo De Massis, 2013. "Family firms and internationalization: An exploratory study on high-tech entrepreneurial ventures," Journal of International Entrepreneurship, Springer, vol. 11(2), pages 108-129, June.
    13. Gautham Vadakkepatt & Venkatesh Shankar & Rajan Varadarajan, 2021. "Should firms invest more in marketing or R&D to maintain sales leadership? An empirical analysis of sales leader firms," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1088-1108, November.
    14. Jun Tian & Kanliang Wang & Yan Chen & Björn Johansson, 2010. "From IT deployment capabilities to competitive advantage: An exploratory study in China," Information Systems Frontiers, Springer, vol. 12(3), pages 239-255, July.
    15. Suvi Nenonen & Kaj Storbacka & Charlotta Windahl, 2019. "Capabilities for market-shaping: triggering and facilitating increased value creation," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 617-639, July.
    16. Kathleen M. Eisenhardt & Christopher B. Bingham, 2017. "Superior Strategy in Entrepreneurial Settings: Thinking, Doing, and the Logic of Opportunity," Strategy Science, INFORMS, vol. 2(4), pages 246-257, December.
    17. Jeroen Struben & Brandon H. Lee & Christopher B. Bingham, 2020. "Collective Action Problems and Resource Allocation During Market Formation," Strategy Science, INFORMS, vol. 5(3), pages 245-270, September.
    18. Elisa Conz & Giovanna Magnani & Antonella Zucchella & Alfredo Massis, 2023. "Responding to unexpected crises: The roles of slack resources and entrepreneurial attitude to build resilience," Small Business Economics, Springer, vol. 61(3), pages 957-981, October.
    19. Amirmahmood Amini Sedeh & Rosa Caiazza & Amir Pezeshkan, 2023. "Unraveling the resource puzzle: exploring entrepreneurial resource management and the quest for new venture success," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1552-1573, October.

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