The Role of Firm’s Unique Resource in Developing Sustainable Competitive Advantage from Strategy Inimitability and its Effect on Firm Performance of Mining Companies in Indonesia

Abstract

The positive relationship between unique resources and sustainable competitiveness of the company has been well understood and applies to almost all businesses. However, little is known about the specific effects of the uniqueness of resources and business strategies in this relationship. Using resource-based view (RBV), Porter's five-factor theory, and game theory, as well as imitation theory between companies, this study explains how the influence of company-specific resources and the uniqueness of the company's strategy as a sustainable competitive advantage affect performance. Analysis of data collected from surveys on 101 mining companies in Indonesia shows companies with distinctive resources are able to produce unique business strategies and insofar as they cannot be replicated, companies can enjoy sustainable competitive advantage. This implies that mining companies need to avoid their resources and business strategies to be imitated by their competitors if the company still wants to maintain competitive advantage and performance.

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