Position, leverage and opportunity: a typology of strategic logics linking resources with competitive advantage

Christopher B. Bingham and Kathleen M. Eisenhardt
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Christopher B. Bingham: University of Maryland, MD, USA, Postal: University of Maryland, MD, USA
Kathleen M. Eisenhardt: Stanford University, CA, USA, Postal: Stanford University, CA, USA

Managerial and Decision Economics, 2008, vol. 29, issue 2-3, pages 241-256

Abstract: The resource-based view's (RBVs) contribution toward understanding competitive advantage remains unfulfilled. A reason is the confounding of the concept of resources with RBVs strategic logic. We disentangle these by developing a typology of strategic logics (i.e., leverage, position, and opportunity) that specify alternative theoretical pathways linking resources with competitive advantage. We clarify their market assumptions, relevant performance objectives, and managerial challenges. Besides introducing the logic of opportunity, we indicate the central insight that competitive advantage stems from the linkages among resources, not just their attributes. Thus, while VRIN resources may be useful for creating advantage, they may be neither necessary nor sufficient for competitive advantage to ensue. Copyright © 2007 John Wiley & Sons, Ltd.

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