Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Causation, counterfactuals, and competitive advantage
AU - Durand, Rodolphe
AU - Vaara, Eero
PY - 2009/12
Y1 - 2009/12
N2 - Causation is still poorly understood in strategy research, and confusion prevails around key concepts such as competitive advantage. In this paper, we define epistemological conditions that help dispel some of this confusion and provide a basis for more developed approaches. In particular, we argue that a counterfactual approach—one that builds on a systematic analysis of ‘what-if’ questions—can advance our understanding of key causal mechanisms in strategy research. We offer two concrete methodologies—counterfactual history and causal modeling—as useful solutions. We also show that these methodologies open up new avenues in research on competitive advantage. Counterfactual history can add to our understanding of the context-specific construction of resource-based competitive advantage and path dependence, and causal modeling can help to reconceptualize the relationships between resources and performance. In particular, resource properties can be regarded as mediating mechanisms in these causal relationships.
AB - Causation is still poorly understood in strategy research, and confusion prevails around key concepts such as competitive advantage. In this paper, we define epistemological conditions that help dispel some of this confusion and provide a basis for more developed approaches. In particular, we argue that a counterfactual approach—one that builds on a systematic analysis of ‘what-if’ questions—can advance our understanding of key causal mechanisms in strategy research. We offer two concrete methodologies—counterfactual history and causal modeling—as useful solutions. We also show that these methodologies open up new avenues in research on competitive advantage. Counterfactual history can add to our understanding of the context-specific construction of resource-based competitive advantage and path dependence, and causal modeling can help to reconceptualize the relationships between resources and performance. In particular, resource properties can be regarded as mediating mechanisms in these causal relationships.
KW - causation
KW - counterfactuals
KW - competitive advantage
KW - resource properties
KW - history
KW - causal modeling
U2 - 10.1002/smj.793
DO - 10.1002/smj.793
M3 - Journal article
VL - 30
SP - 1245
EP - 1264
JO - Strategic Management Journal
JF - Strategic Management Journal
SN - 0143-2095
IS - 12
ER -