The achilles heel of firm strategy: Resource weaknesses and distinctive inadequacies

Two separately developed views within the strategic management literature e lucidate the source of a firm's competitive advantage based on the internal attributes of the firm: the resource-based view (Wernerfelt, 1984) and the distinctive competence view(Selznick, 1957). As developed in the literatur e, however, both views neglect important dimensions which inhibit the achie vement of competitive advantage. These dimensions are resource weaknesses a nd distinctive inadequacies. Accounting for weaknesses and inadequacies exp oses important choice-sets confronting management in making resource invest ments, and of time-related dimensions in developing sustainable advantage. Considering the effects of weaknesses and inadequacies provides insight on the limits to firm growth and to sustainability of competitive advantage. T heory on developing competitive advantage may lack explanatory and predicti ve power if it excludes these perspectives, which if included may also impr ove prescription for practitioners.