A RESOURCE BASED AND CONTEXT DEPENDENT MODEL OF FIRM COMPETITIVENESS

Abstract

This study aims to provide a conceptual analysis of the main sources of firm level competitiveness. To accom- plish this goal, we develop a resource based and con- text dependent model of firm competitiveness which accounts for both the resource and the environment aspects of competitiveness. Particularly, our model specifies how and under which conditions firm resources can have competitive advantage generation potential and can give rise to actual competitive advantage, and in what ways contextual factors can be influential in this process. Prior to presenting our model, we outline the two main frameworks of the strategy literature on competitiveness analysis, name- ly RBV and I-O model. We review the subsequent empirical studies applying them to real life settings and discuss the commentaries highlighting their implicit assumptions and possible limitations. Our model draws upon some of the central tenets of these two frameworks, especially those of the resource- based analysis; however extends them in a number ways and in a way presents a new interpretation of resource-based approach.