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Strategic factor markets: Bargaining, scarcity, and resource complementarity

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  • Adegbesan, Tunji

    ()
    (IESE Business School)

Abstract

Strategic factor market theory suggests that without luck or asymmetric expectations, firms can't appropriate gains from acquired resources. Adopting the bargaining perspective on resource advantage, we hold that this is only true in the absence of resource complementarity. We extend factor market theory to account for resource complementarity, and we show that firms can profit when they exhibit superior complementarity to target resources, even in the absence of asymmetric expectations. Thus we provide an alternative interpretation of managers' recent emphasis on externally acquired resources.

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Bibliographic Info

Paper provided by IESE Business School in its series IESE Research Papers with number D/666.

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Length: 23 pages
Date of creation: 18 Jan 2007
Date of revision:
Handle: RePEc:ebg:iesewp:d-0666

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Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
Web page: http://www.iese.edu/
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Related research

Keywords: Complementarity; bargain perspective; value appropriation; resource acquisition; asymmetric expectation;

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References

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Cited by:
  1. Adegbesan, Tunji & Higgins, Matthew J., 2007. "Intra-alliance performance, control rights, and today's split of tomorrow's value," IESE Research Papers D/667, IESE Business School.

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