Our current views of economic competition are still rooted in the imagery of the isolated firm that transacts with its buyers, suppliers, and competitors via largely anonymous factor and product markets. Yet this view is fundamentally at odds with the growing importance of business groups in the global economy. We thus need a reconceptualized version of our idea of economic competition, which is capable of explaining competitive advantage at the group-versus-group rather than firm-versus-firm level of analysis. In the present paper we build on insights derived from organizational sociology and organizational economics to develop a business group-level theory of competition and competitive advantage based on embedded competencies.

Additional Metadata
Keywords Business groups, Competitive advantage, Discrete competencies, Embedded competencies, Profit redistribution rules, Resource-based view
Persistent URL dx.doi.org/10.1007/s10997-008-9064-7, hdl.handle.net/1765/14487
Series ERIM Article Series (EAS)
Journal Journal of Management & Governance
Heugens, P.P.M.A.R, & Zyglidopoulos, S.C. (2008). From social ties to embedded competencies: The case of business groups. Journal of Management & Governance, 12(4), 325–341. doi:10.1007/s10997-008-9064-7