Towards a Dynamic Resource-Based View: Insights from Austrian Capital and Entrepreneurship Theory

Nicolai J. Foss, Ibuki Ishikawa

    Research output: Working paperResearch

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    Abstract

    Over the last two decades the resource-based view (“RBV”) has become dominant in the strategic management field. It has often been observed that the RBV is lacking in the dynamic dimension. For example, processes of building competitive advantages by means of combining existing complementary resources in novel ways are not inquired into. We argue that the RBV may profitably draw on insights in entrepreneurship and capital theory, drawn from Austrian economists as well as Frank Knight, in order to strengthen its dynamic dimension. We link the RBV and Austrian ideas in the context of the theory of complex systems pioneered by Herbert Simon. We draw a number of implications for strategic management from this synthesis, notably into resource value and sustainability of competitive advantage.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherDRUID - Danish Research Unit for Industrial Dynamics
    Number of pages28
    ISBN (Print)8778732077
    Publication statusPublished - 2006
    SeriesDRUID Working Paper
    Number2006-16

    Cite this

    Foss, N. J., & Ishikawa, I. (2006). Towards a Dynamic Resource-Based View: Insights from Austrian Capital and Entrepreneurship Theory. DRUID - Danish Research Unit for Industrial Dynamics. DRUID Working Paper, No. 2006-16