Managing Multiple Sources of Competitive Advantage in a Complex Competitive Environment
AbstractThe aim of this article is to review the literature on the topic of sustained and temporary competitive advantage creation, specifically in dynamic markets, and to propose further research possibilities. After having analyzed the main trends and scholars’ works on the subject, it was concluded that a firm which has been experiencing erosion of its core sources of economic rent generation, should have diversified its strategy portfolio in a search for new sources of competitive advantage, ones that could compensate for the decline of profits provoked by intensive competitive environments. This review concludes with the hypothesis that firms, who have decided to enter and manage multiple competitive environments, should have developed a multiple strategies framework approach. The management of this source of competitive advantage portfolio should have allowed persistence of a firm’s superior economic performance through the management of diverse temporary advantages lifecycle and through a resilient effect, where a very successful source of competitive advantage compensates the ones that have been eroded. Additionally, the review indicates that economies of emerging countries, such as the ones from the BRIC block, should present a more complex competitive environment due to their historical nature of cultural diversity, social contrasts and frequent economic disruption, and also because of recent institutional normalization that has turned the market into hypercompetition. Consequently, the study of complex competition should be appropriate in such environments.
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