Abstract
Mental models shape strategic thinking by simplifying the world and forming assumptions about how it works. They develop throughout life under the influence of society, culture, education, and experience. Knowledge derived from mental models can be categorized as known (what we know), uncertain (what we know we don’t know), and unknowable (what we don’t know we don’t know). The resource-based view of strategy design relies on two key assumptions: firms within an industry differ in their resources (heterogeneity), and this heterogeneity persists due to resource immobility and difficulty in imitation. These unique resources, capabilities, and competencies create competitive advantages. Resource theory explains firm performance through the efficiency of resources and competencies in strategy implementation. This study explores the role of knowledge in sustaining competitive advantage. Strategy literature recognizes the resource-based view as central to strategy design due to the increasing complexity of managing external environments. It also emphasizes the need for holistic management, integrating analytical and intuitive decision-making. Management competencies involve knowledge, skills, and experience in maximizing a company’s value, utilizing both quantitative and qualitative methods. The resource-based view highlights firm-specific competencies and competitive advantages, with strategy defined by the organization’s level of knowledge.
Presenters
Andrija SabolAssistant Professor, Department of Managerial Economics, Faculty of Economics and Business Zagreb, Croatia
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
Knowledge Economies as the Constant
KEYWORDS
Mental models, Resource-based view, Competitive advantage, Strategy, Knowledge
