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The Next Step in the Evolution of the RBV: Integration with Transaction Cost Economics
Kirsten Foss 1, Nicolai J Foss 2,3
Affiliations
Article Info
1 Center for Knowledge Governance and Department of International Economics and Management, Copenhagen Business School, Howitzvej 60, 2. fl., DK – 2000 Frederiksberg
2 Center for Knowledge Governance and Department of Management, Politics and Philosophy, Copenhagen Business School, Blaagaardsgade 23B, DK – 2200 Copenhagen N
3 Department of Strategy and Management, Norwegian School of Economics and Business Administration, Breiviksveien 40, N – 5045 Bergen, Norway
Abstract
This essay addresses the role of transaction cost economics (TCE) in advancing the resource-based view. In particular, it is argued that TCE has the potential to remedy a number of weak spots in the RBV, such as the absence of attention in the RBV to the interaction between value creation and value appropriation. This and other weak spots in the RBV stem from not taking account of transaction costs to a sufficient extent. Integrating TCE with the RBV adds new insight into the analysis of sustained competitive advantage.