Resources and Capabilities for Sustainable Competitive Advantage: A Cross-Functional Perspective

This paper examines the sources of competitive advantage from a cross-functional perspective and presents a dynamic, general model of the tangible and intangible factors that lead to superior firm performance. We argue that superior performance results from the development of a complex, interrelated stock of organizational capabilities. We define capabilities as the result of managerial skill applied strategically to a firmsÕ resources and processes in a manner that integrates and leverages these resources across functional areas. Furthermore, capabilities are not bought and sold, but built by skilled managers, who foster their growth by developing interconnected resource stocks. A process model is presented and implications for both managers and researchers are discussed.