The Vicissitudes of Competitive Advantage: Empirical Evidence from Australian Manufacturing SMEs

Tung‐shan Liao, John Rice and Juin‐cherng Lu

Journal of Small Business Management, 2015, vol. 53, issue 2, 469-481

Abstract: The goal of this study is to illustrate the variance pattern of competitive advantage. On the basis of an a priori model drawing on the chumpeterian factors mediating the effects of innovation investment on firm performance, this paper conducts a ultiple ndicator ultiple ause analysis on the intertemporal competitive advantage. The results suggest that the composition of sustainable competitive advantage is a series of short‐term advantages. Either sustaining or creating competitive advantage requires concomitant interaction between innovation and effective market engagement. This paper highlights innovative efficiency of such interaction as an influence on a firm's evolution of market fitness in the marketplace.

Date: 2015
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DOI: 10.1111/jsbm.12078

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