Asset Stock Accumulation and Sustainability of Competitive Advantage

Ingemar Dierickx; Karel Cool

doi:10.1287/mnsc.35.12.1504

journal article Dec 01, 1989

Asset Stock Accumulation and Sustainability of Competitive Advantage

Management Science Vol. 35 No. 12 pp. 1504-1511 · Institute for Operations Research and the Management Sciences (INFORMS)

View at Publisher Save 10.1287/mnsc.35.12.1504

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.

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Details

Published: Dec 01, 1989
Vol/Issue: 35(12)
Pages: 1504-1511

Authors

I

Ingemar Dierickx

INSEAD, Boulevard de Constance, 77305 Fontainebleau Cedex, France

K

Karel Cool

INSEAD, Boulevard de Constance, 77305 Fontainebleau Cedex, France

Cite This Article

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

Asset Stock Accumulation and Sustainability of Competitive Advantage

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