@techreport{95702dc1122847beb5b42c7614eeb3e0,
title = "Compositional Advantage and Strategy",
abstract = "In this paper, I first critique the composition-based view of Yadong Luo and John Child for understanding how resource-poor firms survive and thrive. To remedy the deficiencies in their perspective, I then propose a dynamic theory of compositional advantage and strategy. Here, the compositional advantage is redefined as the attractiveness of the composition of the producer{\textquoteright}s offering in terms of scope and perceived value/price ratio. I identify five ways or basic compositional strategies to improve the value/price ratio. A firm may have an overall compositional strategy that is composed of some or all of the five basic compositional strategies. I argue there are three indispensable key success factors for a composition-based competition, i.e., aspiration (ambition-position asymmetry), attitude (being ALERT), and action (turning asymmetry into advantage). I also discuss the particular relevance of the present theory to understanding Chinese firms. I conclude with managerial implications and suggestions for future research.",
keywords = "Composition, Advantage, Strategy, Value/price ratio, Key success factor, Asymmetry, Composition, Advantage, Strategy, Value/price ratio, Key success factor, Asymmetry",
author = "Xin Li",
year = "2016",
language = "English",
series = "Copenhagen Discussion Papers",
number = "63",
publisher = "Asia Research Centre. Copenhagen Business School",
address = "Denmark",
type = "WorkingPaper",
institution = "Asia Research Centre. Copenhagen Business School",
}