- Subject index
A General Theory of Competition develops a ground-breaking new theory of competition - `resource-advantage theory'. Recent thinking on competition has assumed the premises, structure and implications of the theory of perfect competition. In his long-awaited book Shelby Hunt draws on economics, management, marketing and sociology to articulate resource-advantage theory. The author proceeds to illustrate how and why his theory may be used to explain and predict economic phenomena with great accuracy. This volume is extremely well-referenced, with detailed source notes.
Chapter 6: Resource-Advantage Theory: An Evolutionary, Process Theory of Competition
Resource-Advantage Theory: An Evolutionary, Process Theory of Competition
Competition is the constant struggle among firms for comparative advantages in resources that will yield marketplace positions of competitive advantage for some market segment(s) and, thereby, superior financial performance. For resource-advantage theory, (1) competition is disequilibrium provoking, and (2) both innovation and organizational learning are endogenous. That is, the process of R-A competition is status quo disturbing and leads to both innovation and learning. The pursuit of superior financial performance, for example, more profits than last year, ensures that rivals will engage in actions, including innovations, that disrupt any stasis that might temporarily occur.
This chapter begins by explicating the process of R-A competition and showing how it leads to innovation ...