THE VALUATION OF GOODS: A RESOURCE‐BASED PERSPECTIVE

Abstract

We use a resource‐based perspective to discuss firm idiosyncrasies in valuing goods. Previous research has suggested that asymmetric valuation processes form an early and often pivotal step in the development of uniqueness (Barney, 1986; Jacobson, 1992; Rumelt, 1987; Winter, 1995). We go beyond this work in clearly differentiating between the aspects of the valuation process that are idiosyncratic and those that are not. Indeed, we attempt to shed light on the following questions: (1) Which factors determine the value a firm places on a good that it is considering for purchase? (2) Can these factors vary across firms? (3) To what degree, and in what ways, can valuation discrepancies lead to competitive advantages? A model of valuation is developed and propositions are discussed based on the logic and model.

Citation

Martinez, R.J. and Levitas, E. (2002), "THE VALUATION OF GOODS: A RESOURCE‐BASED PERSPECTIVE", The International Journal of Organizational Analysis, Vol. 10 No. 1, pp. 76-97. https://doi.org/10.1108/eb028945