Arbeitspapier
Compositional Advantage and Strategy: Understanding How Resource-Poor Firms Survive and Thrive
In this paper, I first critique the composition-based view of Yadong Luo and John Child for understanding how resource-poor firms survive and thrive. To remedy the deficiencies in their perspective, I then propose a dynamic theory of compositional advantage and strategy. Here, the compositional advantage is redefined as the attractiveness of the composition of the producer's offering in terms of scope and perceived value/price ratio. I identify five ways or basic compositional strategies to improve the value/price ratio. A firm may have an overall compositional strategy that is composed of some or all of the five basic compositional strategies. I argue there are three indispensable key success factors for a composition-based competition, i.e., aspiration (ambition-position asymmetry), attitude (being ALERT), and action (turning asymmetry into advantage). I also discuss the particular relevance of the present theory to understanding Chinese firms. I conclude with managerial implications and suggestions for future research.
- Language
-
Englisch
- Bibliographic citation
-
Series: Copenhagen Discussion Papers ; No. 2016-63
- Classification
-
Wirtschaft
- Subject
-
Composition
Advantage
Strategy
Value/price ratio
Key success factor
Asymmetry
Produktdifferenzierung
Produktmanagement
Erfolgsfaktor
China
- Event
-
Geistige Schöpfung
- (who)
-
Li, Xin
- Event
-
Veröffentlichung
- (who)
-
Copenhagen Business School (CBS), Asia Research Centre (ARC)
- (where)
-
Frederiksberg
- (when)
-
2016
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Li, Xin
- Copenhagen Business School (CBS), Asia Research Centre (ARC)
Time of origin
- 2016
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