Because supply chains are not a continuation of any single market, firms face
unique costs associated with each type of access route. Only those firms with the
necessary means to overcome the entry cost barrier will enter a supply chain, and the
rest are excluded. Thus, firm resources are the basis of a firm’s motivation to develop
SCM practices to engage in the chain. In summary, though resource-based view is
not a traditional theory among SCM research, it plays an increasingly important role
because SCM can be regarded as similar to strategic alliances, which has been studied
extensively from a resource-based view perspective in terms of its economic rationale
(Hsu et al., 2011; Hitt, 2011). Hence, resource-based view provides a powerful theoretical
perspective to understand a firm’s behavior.
We consider an antecedent of product advantage, which includes the advantage
of product uniqueness. Contingency theory suggests that product advantage reflects
the competitive attributes associate with differentiation. Firms must develop and use
their core resources to develop unique products that possess technological capabilities
and in a manner that inhibits duplication by competitors to create a competitive
advantage (Dutta et al., 1999). A firm’s product advantages create value not only for the
firm but also for its suppliers and customers (Porter, 1985, 1979). Hsu et al. (2008)
hint that firms in a supply chain must be able to exploit firm-specific technological
advantages to create superior products. A firm’s product advantage signifies the basis
of its motivation to engage in supply chain operations. In turn, a key driver of SCM
practices should be the stock of product advantages accumulated by a firm; the value
of SCM results from greater economic rents accrued due to its inimitable product
uniqueness.
Because supply chains are not a continuation of any single market, firms faceunique costs associated with each type of access route. Only those firms with thenecessary means to overcome the entry cost barrier will enter a supply chain, and therest are excluded. Thus, firm resources are the basis of a firm’s motivation to developSCM practices to engage in the chain. In summary, though resource-based view isnot a traditional theory among SCM research, it plays an increasingly important rolebecause SCM can be regarded as similar to strategic alliances, which has been studiedextensively from a resource-based view perspective in terms of its economic rationale(Hsu et al., 2011; Hitt, 2011). Hence, resource-based view provides a powerful theoreticalperspective to understand a firm’s behavior.We consider an antecedent of product advantage, which includes the advantageof product uniqueness. Contingency theory suggests that product advantage reflectsthe competitive attributes associate with differentiation. Firms must develop and usetheir core resources to develop unique products that possess technological capabilitiesand in a manner that inhibits duplication by competitors to create a competitiveadvantage (Dutta et al., 1999). A firm’s product advantages create value not only for thefirm but also for its suppliers and customers (Porter, 1985, 1979). Hsu et al. (2008)hint that firms in a supply chain must be able to exploit firm-specific technologicaladvantages to create superior products. A firm’s product advantage signifies the basis
of its motivation to engage in supply chain operations. In turn, a key driver of SCM
practices should be the stock of product advantages accumulated by a firm; the value
of SCM results from greater economic rents accrued due to its inimitable product
uniqueness.
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