Vantagem Competitiva e sua Relação com o Desempenho – uma Abordagem Baseada em Valor

Abstract

This theoretical paper discusses the concept of competitive advantage by identifying the challenges the field ofbusiness strategy faces in obtaining a precise and operational definition that links the concept to firmperformance. Starting by the analysis and consolidation of literature in the area, we explicitly display the gapsand lack of differentiation between the constructs of competitive advantage and performance. This paperprovides a definition based on the superior creation of value, with value defined as the difference betweencustomers’ willingness to pay and suppliers’ opportunity cost. This definition suggests that the value created canbe divided into three parts: the value appropriated by the firm, the customers’ surplus, and the suppliers’ surplus.Each part has implications for firm performance: while the appropriated value reveals the profit level, the valuenot appropriated can be translated into growth and operational performance. Regarding the operationalization ofcompetitive advantage, we discuss aspects related to comparison between firms and the temporal observation ofthe event. As the main result of this discussion, we explore the causal logic between competitive advantage andperformance and conclude that competitive advantage cannot be depicted by the observation of a uniquevariable, as it is imprecise and does not measure the extent of impacts strategic decisions have.

Keywords

• competitive advantage
• value creation
• value appropriation
• performance.