Causation is still poorly understood in strategy research, and confusion prevails around key concepts such as competitive advantage. In this paper, we define epistemological conditions that help dispel some of this confusion and provide a basis for more developed approaches. In particular, we argue that a counterfactual approach - one that builds on a systematic analysis of 'what-if' questions …
Developing technological applications, entering exploitation alliances, and choosing between research- or service-focused strategic orientations are decisions that high-tech firms must manage concurrently. This article explores systematically the contrasting effects of these strategic determinants on rent generation and rent appropriation using the entire population of French biotech firms (199…
We study the effects of organizational code-preserving and code-violating changes on external evaluations by third parties - an essential but under-studied strategic outcome. We define code-preserving changes as a variation in the firm's product range that preserves the social code within which the firm positions its offering. By contrast, a code-violating change corresponds to a variation in t…
In a 2001 paper, T. Powell provided logical and philosophical considerations on competitive advantage. Powell investigated whether competitive advantage is a legitimate scientific concept. In a response to Powell's research, it is shown that: 1. Logically, the conjunction of competitive advantage and a capable organization is sufficient and necessary to lead to superior returns. 2. Alternative …
Recent research shows that forecasting ability is an organizational distinctive competence. We propose and test a model accounting for interfirm differences in forecasting ability. After controlling for reciprocal effects, we find that two principal firm-level factors (i.e., organizational illusion of control and organizational attention) influence both bias and magnitude of errors in estimates…