journal article Apr 01, 1991

The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation

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References
41
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Because of the ambiguity associated with accounting definitions of profit, the academic literature increasingly uses the term “rent” to refer to “economic profit.” “Rent” is the surplus of revenue over the “real” or “opportunity” cost of the resources used in generating that revenue. The “real” or “opportunity” cost of a resource is the revenue it can generate when put to an alternative use in the firm or the price which it can be sold for.
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In economist's jargon, such jointly owned resources are “public goods”—their benefits can be extended to additional firms at negligible marginal cost.
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Barney, op. cit.
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“Catch a Falling Star,” The Economist, April 23, 1988, pp. 88–90.
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Ferguson Charles [“From the People Who Brought You Voodoo Economics,” Harvard Business Review (May/June 1988), pp. 55–63] has claimed that these start-ups involve the individual exploitation of technical knowledge which rightfully belongs to the former employers of these new entrepreneurs.
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Hamel Gary, Doz Yves, Prahalad C.K. “Collaborate with Your Competitors—and Win,” Harvard Business Review (January/February 1989), pp. 133–139.
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Takahashi Arataroh, What I learned from Konosuke Matsushita (Tokyo: Jitsugyo no Nihonsha, 1980) [in Japanese]. Quoted by Itami, op. cit., p. 25.
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Published
Apr 01, 1991
Vol/Issue
33(3)
Pages
114-135
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Cite This Article
Robert M. Grant (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, 33(3), 114-135. https://doi.org/10.2307/41166664
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