Minding the Competition: From Mapping to Mastery

Abstract

Cognitive approaches to strategy have examined the subjective nature of business environments and competitive situations, but have failed to show how managerial mental models lead to superior economic performance. In contrast, resource‐based views of strategy acknowledge the importance of managerial skills in creating economic rents, but have not examined the processes through which managerial cognitions lead to sustained competitive advantage. To address this deficit, this article develops a sociocognitive capability approach that integrates cognitive and economic theories. This approach: (1) identifies sociocognitive foundations of differentiation and cost; (2) examines how these foundations emerge from the process of strategy development; (3) explains how group capabilities influence this process; and (4) shows how human and organizational resources give rise to group capabilities. The article concludes by discussing implications and directions for future research.

Selection Capability: How Capability Gaps and Internal Social Frictions Affect Internal and External Strategic Renewal

“…From this perspective, firms operate within a social framework of norms, values, and taken-for-granted assumptions about what constitutes appropriate or acceptable economic behavior (DiMaggio and Powell 1983). Institutional factors surrounding capability decisions constrain the potential of firms to develop new capabilities (Ginsberg 1994). Firms are more likely to use internal development for new capabilities that are socially accepted.…”

The business model concept: theoretical underpinnings and empirical illustrations

“…The focal point of the process perspective is the management of cognitive and cultural constraints on strategic development and firm evolution (Whittington, 2000). The process perspective has progressed, focusing the managerial function (Prahalad & Bettis, 1986;Ginsberg, 1994), and has also been combined with RBV (Amit & Schoemaker, 1993;Oliver, 1997). Process approaches are also applied in IS research (Robey & Boudreau, 1999) and viewed as 'valuable aids in understanding issues pertaining to designing and implementing information systems, assessing their impact, and anticipating and managing the process of change associated with them' (Kaplan, 1991, p. 593).…”

Can Institutional Forces Create Competitive Advantage? An Empirical Examination of Environmental Innovation

“…According to the institutional perspective, organizations conform to societal expectations in order to increase their legitimacy, resources, and survival capabilities, but reasons of efficiency are often ignored. Conversely, RBV can be criticized for excessive emphasis on resource markets and economically rational choices without taking into account the social context within which companies' choices are embedded and how this context might affect companies' sustainable competitive advantage development (Ginsberg, 1994;Oliver, 1997). However, other external circumstances beyond economic factors are also likely to affect the development of resources and competitive advantage (Barney, Wright, and Ketchen, 2001;Oliver, 1997).…”