Developing a measure of competitive advantage

Purpose – The purpose of this paper is to attempt to develop a measure of competitive advantage by identifying a stipulative definition, composing an operational definition and constructing a measurement variable. Design/methodology/approach – The paper undertakes critical literature review, cognitive interviews as well as a pilot and full study, which were carried out by applying a cross-sectional, self-administered e-mail survey with questionnaire in a fillable text-processing file, in order to develop a valid and reliable measure of competitive advantage. Findings – The results have led to the identification of a conceptually robust stipulative definition, the composition of a comprehensive operational definition and the construction of a qualified variable, making the development of a valid and reliable measure of competitive advantage possible. Research limitations/implications – The newly developed measure of competitive advantage, exempt from past conceptual problems, could be used for valid measurements in future empirical studies in the field of strategic management. At the same time, authors encourage future tests of the newly developed measure's reliability and validity. Practical implications – The provision of a conceptually clear stipulating definition and a comprehensive operational definition for competitive advantage could increase practicing managers’ awareness relating to the conceptual nature as well as the latent expressions of competitive advantage. Originality/value – The findings contribute to the evolution of the strategic management field by providing a valid and reliable measure of competitive advantage that is applicable under any leading theoretical perspective in strategic management and it could better serve the needs of both empirical research and management practice.