Asset Stock Accumulation and Sustainability of Competitive Advantage

Ingemar Dierickx and Karel Cool
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Ingemar Dierickx: INSEAD, Boulevard de Constance, 77305 Fontainebleau Cedex, France
Karel Cool: INSEAD, Boulevard de Constance, 77305 Fontainebleau Cedex, France

Management Science, 1989, vol. 35, issue 12, 1504-1511

Abstract: Given incomplete factor markets, appropriate time paths of flow variables must be chosen to build required stocks of assets. That is, critical resources are accumulated rather than acquired in "strategic factor markets" (Barney [Barney, J. 1986. Strategic factor markets: Expectations, luck, and business strategy. Management Sci. (October) 1231--1241.]). Sustainability of a firm's asset position hinges on how easily assets can be substituted or imitated. Imitability is linked to the characteristics of the asset accumulation process: time compression diseconomies, asset mass efficiencies, inter-connectedness, asset erosion and causal ambiguity.

Keywords: competitive advantage; resource accumulation; imitation (search for similar items in EconPapers)
Date: 1989
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