COMPETING FOR RESOURCES AND CAPABILITIES IN DYNAMIC FACTOR-MARKETS

Abstract

This paper analyzes the dynamics in resource development and the complexity of resource origin. Three factors – stakeholders, interactions, and scarcity – prove helpful to explain both dynamics and complexity of factor-markets. We build on these three factors and propose a systemic model on dynamic interactions to illustrate the structural characteristics of a factor-market. We suggest to managers to analyze first factor-markets separately, so they can collect as much information as possible on resource relationships with strategic importance. Then this information is incorporated in a “resource matrix,” which facilitates analyzing the interdependencies of various resource relationships and helps practitioners develop an integrated strategy to compete in factor-markets.

Citation

Dentchev, N.A. and Heene, A. (2005), "COMPETING FOR RESOURCES AND CAPABILITIES IN DYNAMIC FACTOR-MARKETS", Sanchez, R. and Heene, A. (Ed.) Competence Perspectives on Managing Interfirm Interactions (Advances in Applied Business Strategy, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 233-251. https://doi.org/10.1016/S0749-6826(04)08010-2