Purpose – The purpose of this paper is to attempt to develop a measure of competitive advantage by identifying a stipulative definition, composing an operational definition and constructing a measurement variable. Design/methodology/approach – The paper undertakes critical literature review, cognitive interviews as well as a pilot and full study, which were carried out by applying a cross-sectional, self-administered e-mail survey with questionnaire in a fillable text-processing file, in order to develop a valid and reliable measure of competitive advantage. Findings – The results have led to the identification of a conceptually robust stipulative definition, the composition of a comprehensive operational definition and the construction of a qualified variable, making the development of a valid and reliable measure of competitive advantage possible. Research limitations/implications – The newly developed measure of competitive advantage, exempt from past conceptual problems, could be used for valid measurements in future empirical studies in the field of strategic management. At the same time, authors encourage future tests of the newly developed measure's reliability and validity. Practical implications – The provision of a conceptually clear stipulating definition and a comprehensive operational definition for competitive advantage could increase practicing managers’ awareness relating to the conceptual nature as well as the latent expressions of competitive advantage. Originality/value – The findings contribute to the evolution of the strategic management field by providing a valid and reliable measure of competitive advantage that is applicable under any leading theoretical perspective in strategic management and it could better serve the needs of both empirical research and management practice.

PurposeAlthough competitive advantage is the cornerstone concept in strategic management it still remains a poorly defined and operationalized construct. The purpose of this paper is to revisit the concept of competitive advantage, to identify the problems that stem from its current conceptualization from the majority of the literature.Design/methodology/approachThe paper undertakes an extensive literature review, audit of logical inference, syllogistic reasoning and Bayesian expressions in order to examine the problems associated with the current conceptualizations of competitive advantage.FindingsSeveral drawbacks and fallacies relating to current conceptualizations of competitive advantage were identified that create an urgent need for a more robust definition which could better serve the needs of both empirical research and management practice.Research limitations/implicationsThe authors by no means claim that the literature review undertaken in this paper on the concept of competitive advantage and on the problems derived from its conceptualization was exhaustive or absolute. Rather, this paper constitutes an attempt to stimulate efforts and provide directions on the further conceptual development of competitive advantage.Practical implicationsThe findings allow practising managers to not necessarily associate competitive advantage with its sources and with the determinants of superior performance.Originality/valueThe findings contribute to the evolution of the strategic management field by identifying, categorizing and mapping potential problems, drawbacks and fallacies, associated with the conceptualization of competitive advantage as currently delineated in the literature, and by suggesting some criteria for the development of a conceptually more robust definition.

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