A framework linking intangible resources and capabiliites to sustainable competitive advantage

TLDR

Intangible resources such as regulatory, positional, functional, and cultural assets underpin sustainable competitive advantage by creating capability differentials that drive business strategy. The authors devised a framework linking intangible resources to capabilities, using it to quantify each resource’s contribution to competitive advantage. Applying this technique to six case studies revealed how different intangible resources contribute to competitive advantage.

Abstract

Abstract This article is concerned with the role of intangible resources in business strategy. In particular it is concerned with identifying the intangible sources of sustainable competitive advantage. Sustainable competitive advantage results from the possession of relevant capability differentials. Regulatory and positional capabilities are concerned with intangible assets; functional and cultural capabilities are concerned with competencies. A framework linking intangible resources to capabilities has been devised and is used as the basis of a new technique for identifying the relative contribution which the different intangible resources make to competitive advantage. The results of the use of this technique in six case studies are reported.