Sustaining Competitive Advantage

1
Sustaining Competitive Advantage
Chapter 12
2
The Origins Competitive Advantage Innovation,
Evolution and the Environment
Chapter 13
3
Competition as an Evolutionary Process
Competitive advantage initially results by
altering the basis of competition
New markets
New technologies
Organizational aggressiveness
Competitive advantage is sustained by
Improving existing sources of advantage
Creating new sources of advantage
4
Agency and Performance Measurement
Chapter 14
Incentives in Firms
Chapter 15
5
Aligning individual and Organizational Interests
All stylized fact is that all individuals are
self-interested
A key challenge to managers is how to align
self-interest with the overall organizational
goals
Using incentives in cases where job performance
is complex and multi-dimensional
6
So Do incentives work?
?
7
A Few Final Thoughts
Entrepreneurship, History and (pop) Culture
8
History
The Americans The National Experienceby DANIEL
J. BOORSTIN
(Pop) Culture
Bobos in Paradise The Rise of the New Upper
Class and How they Got There by DAVID BROOKS
On Paradise Drive How We Live Now (and Always
Have) In the Future by DAVID BROOKS
Read the Wall Street Journal Religiously