C. Droge et al., SOURCES AND OUTCOMES OF COMPETITIVE ADVANTAGE - AN EXPLORATORY-STUDY IN THE FURNITURE INDUSTRY, Decision sciences, 25(5-6), 1994, pp. 669-689
We examine a model of the relationships among sources and outcomes of
competitive advantage. The model is integrative across business functi
ons and research disciplines. Functional area competencies are conside
red as sources of advantage, and three competency constructs are intro
duced: marketing competency, product design and development (innovatio
n) competency, and manufacturing competency. Each functional area cons
truct is defined as the sum of the performance on 31 competitive items
, weighted by importance and extent of responsibility. Relationships b
etween the competency constructs (and their interactions) with perform
ance outcomes such as ROI and market share are analyzed. Results from
this exploratory study suggest that innovation is a key source of comp
etitive advantage.