Compositional Advantage and Strategy


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Compositional Advantage and Strategy

Show simple item record Li, Xin 2016-05-12T08:21:48Z 2016-05-12T08:21:48Z 2016-05-12
dc.description.abstract In this paper, I first critique the composition-based view of Yadong Luo and John Child for understanding how resource-poor firms survive and thrive. To remedy the deficiencies in their perspective, I then propose a dynamic theory of compositional advantage and strategy. Here, the compositional advantage is redefined as the attractiveness of the composition of the producer’s offering in terms of scope and perceived value/price ratio. I identify five ways or basic compositional strategies to improve the value/price ratio. A firm may have an overall compositional strategy that is composed of some or all of the five basic compositional strategies. I argue there are three indispensable key success factors for a composition-based competition, i.e., aspiration (ambition-position asymmetry), attitude (being ALERT), and action (turning asymmetry into advantage). I also discuss the particular relevance of the present theory to understanding Chinese firms. I conclude with managerial implications and suggestions for future research. en_US
dc.format.extent 29 en_US
dc.language eng en_US
dc.relation.ispartofseries Copenhagen Discussion Papers;63
dc.subject.other Composition en_US
dc.subject.other Advantage en_US
dc.subject.other Strategy en_US
dc.subject.other Value/price ratio en_US
dc.subject.other Key success factor en_US
dc.subject.other Asymmetry en_US
dc.title Compositional Advantage and Strategy en_US
dc.type wp en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Asia Research Centre en_US
dc.contributor.departmentshort ARC en_US
dc.contributor.departmentuk Asia Research Centre en_US
dc.contributor.departmentukshort ARC en_US Frederiksberg en_US
dc.publisher.year 2016 en_US
dc.title.subtitle Understanding How Resource-Poor Firms Survive and Thrive en_US

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