The Inside Track: On the Important (But Neglected) Role of Customers in the Resource‐Based View of Strategy and Firm Growth*

Ivo Zander and Udo Zander

Journal of Management Studies, 2005, vol. 42, issue 8, 1519-1548

Abstract: abstract This paper argues for the important role of customers as a source of competitive advantage and firm growth, an issue which has been largely neglected in the resource‐based view of the firm. It conceptualizes Penrose's (1959) notion of an ‘inside track’ and illustrates how in‐depth knowledge about established customers combines with joint problem‐solving activities and the rapid assimilation of new and previously unexploited skills and resources. It is suggested that the inside track represents a distinct and perhaps underestimated way of generating rents and securing long‐term growth. This also implies that the sources of sustainable competitive advantage in important respects can be sought in idiosyncratic interfirm relationships rather than within the firm itself.

Date: 2005
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:bla:jomstd:v:42:y:2005:i:8:p:1519-1548

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