INTRODUCTION
However they phrase them, executives often
examine such questions as, ‘What makes us
distinctive or unique?’; ‘Why do some and not
other customers buy from us?’; ‘Why are we
profitable?’. Typical answers might refer to the
firm’s ‘technical know-how,’ ‘responsiveness
to market needs,’ ‘design and engineering
capability,’ or ‘financial resources.’ The common
theme among these responses is that
management deems some firm-specific
resources and capabilities to be crucial in
explaining a firm’s performance.