TY - JOUR
T1 - Letting rivals come close or warding them off? The effects of substitution threat on imitation deterrence
AU - Polidoro, Francisco
AU - Toh, Puay Khoon
PY - 2011/4/1
Y1 - 2011/4/1
N2 - A resource-based theory postulate is that firms must defend their resources against imitation to sustain competitive advantage. However, by deterring imitation, firms may induce rivals to create substitutes. This study shows that, contrary to received wisdom, firms are not uniformly inclined to deter resource imitation. Rather, this inclination decreases in response to substitution threat. By examining how firms manage the trade-off between inimitability and nonsubstitutability, this study suggests that the scenario wherein firms have omnipotent resources that are both inimitable and nonsubstitutable may be unrealistic and that managing the tension between these two attributes is key to sustainable competitive advantage.
AB - A resource-based theory postulate is that firms must defend their resources against imitation to sustain competitive advantage. However, by deterring imitation, firms may induce rivals to create substitutes. This study shows that, contrary to received wisdom, firms are not uniformly inclined to deter resource imitation. Rather, this inclination decreases in response to substitution threat. By examining how firms manage the trade-off between inimitability and nonsubstitutability, this study suggests that the scenario wherein firms have omnipotent resources that are both inimitable and nonsubstitutable may be unrealistic and that managing the tension between these two attributes is key to sustainable competitive advantage.
UR - http://www.scopus.com/inward/record.url?scp=79955611430&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=79955611430&partnerID=8YFLogxK
U2 - 10.5465/AMJ.2011.60263099
DO - 10.5465/AMJ.2011.60263099
M3 - Article
AN - SCOPUS:79955611430
SN - 0001-4273
VL - 54
SP - 369
EP - 392
JO - Academy of Management Journal
JF - Academy of Management Journal
IS - 2
ER -