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On the relationship between economic rent and profit

Hallberg, Niklas Lars LU (2009) In Working paper series 2009(2).
Abstract
The question of who appropriates the economic rents created by resources and capabilities has remained largely unresolved in strategic management. The aim of this paper is to highlight the problem established strategic management theory faces in explaining value appropriation, and to propose a framework that addresses how R&C affect bargaining power and value appropriation. While resource-based theory focuses on the generation and sustainability of economic rents, the appropriation factor framework presented in this paper shows that particular resources and capabilities, termed appropriation factors, affect bargaining power, and thus the possibility for economic agents of appropriating a larger share of rents. Based on this framework,... (More)
The question of who appropriates the economic rents created by resources and capabilities has remained largely unresolved in strategic management. The aim of this paper is to highlight the problem established strategic management theory faces in explaining value appropriation, and to propose a framework that addresses how R&C affect bargaining power and value appropriation. While resource-based theory focuses on the generation and sustainability of economic rents, the appropriation factor framework presented in this paper shows that particular resources and capabilities, termed appropriation factors, affect bargaining power, and thus the possibility for economic agents of appropriating a larger share of rents. Based on this framework, it is argued that investments in heterogeneous and immobile appropriation factors that facilitate value appropriation through elevated bargaining power can constitute an alternative avenue to sustained competitive advantage. (Less)
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author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
value appropriation, Appropriation factors, resource-based theory
in
Working paper series
volume
2009
issue
2
pages
19 pages
publisher
Lund Institute of Economic Research
ISSN
1103-3010
language
English
LU publication?
yes
id
1726194f-42bc-4dbf-92d5-45c9cbeb0040 (old id 3123030)
date added to LUP
2012-11-19 13:13:43
date last changed
2016-04-15 22:09:16
@misc{1726194f-42bc-4dbf-92d5-45c9cbeb0040,
  abstract     = {The question of who appropriates the economic rents created by resources and capabilities has remained largely unresolved in strategic management. The aim of this paper is to highlight the problem established strategic management theory faces in explaining value appropriation, and to propose a framework that addresses how R&C affect bargaining power and value appropriation. While resource-based theory focuses on the generation and sustainability of economic rents, the appropriation factor framework presented in this paper shows that particular resources and capabilities, termed appropriation factors, affect bargaining power, and thus the possibility for economic agents of appropriating a larger share of rents. Based on this framework, it is argued that investments in heterogeneous and immobile appropriation factors that facilitate value appropriation through elevated bargaining power can constitute an alternative avenue to sustained competitive advantage.},
  author       = {Hallberg, Niklas Lars},
  issn         = {1103-3010},
  keyword      = {value appropriation,Appropriation factors,resource-based theory},
  language     = {eng},
  note         = {Working Paper},
  number       = {2},
  pages        = {19},
  publisher    = {Lund Institute of Economic Research},
  series       = {Working paper series},
  title        = {On the relationship between economic rent and profit},
  volume       = {2009},
  year         = {2009},
}