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A Critique of Competitive Advantage
Jeremy Klein, Scientific Generics, Cambridge, CB2 5GG, UK
+44 1223 875200, fax +44 1223 875201
jklein@scigen.co.uk
Strategy Stream
Critical Management Studies Conference, July 2001 Manchester
While there have been critiques of specific types of competitive advantage
such as Porter’s so called ‘generic strategies’ and of strategy recipes to
achieve these advantages, this paper seeks to problematize the concept itself.
Despite its ubiquity, the concept of competitive advantage is surprisingly
under-defined. At its worst, it is nothing more than a tautology: successful
firms are successful because they have competitive advantage, which in turn
cannot be defined in any other way than as a quality that brings about success.
Defining the possession in terms of the outcome it produces presents
ontological difficulties: both in cases when competitive advantages is posited
ex ante and in situations where the chain of causality is contestable.
The use of the term competitive advantage has obscured the need to better
understand competition as distinct from strategy. The paper identifies some
different modalities of competition and suggests that most of these are poorly
theorized. The contingent nature of these modalities suggests that
competition might itself be a historically specific process, indicating that the
fads of strategic thought might reflect genuine changes in underlying
competitive processes.
INTRODUCTION
‘Competitive advantage is at the heart of a firm ’s performance in competitive
markets. After sev
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