The Source of Competitive Advantage and Entrepreneurial Judgment in the RBV: Insights from the Austrian School Perspective

Ibuki Ishikawa

    Research output: Working paperResearch

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    The purpose of this paper is to identify the source of competitive advantage in the resource based view of strategic management literature. In particular, it is argued that the source of competitive advantage is rooted in entrepreneur judgment. In this argument, this paper consists largely of three parts: firstly, a brief survey of the theoretical framework of the RBV of strategic management, particularly to identify critically the resource conception in the sense of what RBV scholars understand; secondly, to argue the significance of exploiting the Austrian perspective, especially focusing on Lachmann (1947,1956), Mises (1946) and Knight (1921) to improve the RBV framework; thirdly, to apply the Austrian perspective to the RBV and demonstrate that the source of competitive advantage is derived from entrepreneurial judgment per se, not the resource per se, and to discuss some possible future research avenues for further development. It becomes clear through this paper that a strategy is mainly seen as the quest for the entrepreneurial judgmental rent. The major insight of this paper is that taking the entrepreneur insight from the Austrian school of thought is the fruitful way to understand the source of competitive advantage.
    Original languageEnglish
    Place of PublicationKøbenhavn
    PublisherCenter for Strategic Management and Globalization
    Number of pages38
    ISBN (Print)8791815215
    Publication statusPublished - Mar 2006
    SeriesSMG Working Paper


    • Resource-based view
    • Austrian capital theory
    • Entrepreneurial judgment

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