IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v41y2004i6p1003-1027.html
   My bibliography  Save this article

The Definition of Strategic Liabilities, and their Impact on Firm Performance

Author

Listed:
  • Richard J. Arend

Abstract

abstract Strategic Liabilities are processes and tangible and intangible holdings that are firm‐specific, context‐specific and create competitive disadvantage. They are scarce, inconvertible, costly, and appropriated. The concept of Strategic Liabilities contrasts and complements the resource‐based view's Strategic Assets. A firm is likely to possess Strategic Liabilities at some time because these liabilities can originate from endowments, from bad luck, from Strategic Assets, from rival actions, and from unfavourable changes in context. They represent the other side of the firm's ledger often implicitly ignored in the strategy literature. Thus, the formal definition and analysis of Strategic Liabilities is warranted.

Suggested Citation

  • Richard J. Arend, 2004. "The Definition of Strategic Liabilities, and their Impact on Firm Performance," Journal of Management Studies, Wiley Blackwell, vol. 41(6), pages 1003-1027, September.
    • Handle: RePEc:bla:jomstd:v:41:y:2004:i:6:p:1003-1027
    DOI: 10.1111/j.1467-6486.2004.00464.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-6486.2004.00464.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-6486.2004.00464.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Richard Arend, 2009. "Defending against rival innovation," Small Business Economics, Springer, vol. 33(2), pages 189-206, August.
    2. Rosati, Pierangelo & Cummins, Mark & Deeney, Peter & Gogolin, Fabian & van der Werff, Lisa & Lynn, Theo, 2017. "The effect of data breach announcements beyond the stock price: Empirical evidence on market activity," International Review of Financial Analysis, Elsevier, vol. 49(C), pages 146-154.
    3. Angélique Breuillot & Rachel Bocquet & Véronique Favre-Bonté, 2022. "Navigating the internationalization process: Strategic resources for early internationalizing firms," Journal of International Entrepreneurship, Springer, vol. 20(2), pages 282-315, June.
    4. Breuillot, Angélique & Bocquet, Rachel & Favre-Bonté, Véronique, 2024. "Diversity management and firms’ internationalization: Evidence from French SMEs," International Business Review, Elsevier, vol. 33(4).
    5. Efrat, Kalanit & Hughes, Paul & Nemkova, Ekaterina & Souchon, Anne L. & Sy-Changco, Joseph, 2018. "Leveraging of Dynamic export capabilities for competitive advantage and performance consequences: Evidence from China," Journal of Business Research, Elsevier, vol. 84(C), pages 114-124.
    6. Tian, Xiaowen & Slocum, John W., 2015. "The decline of global market leaders," Journal of World Business, Elsevier, vol. 50(1), pages 15-25.
    7. Arend, Richard J., 2009. "Industry effects and firm effects: No effect is an island," Journal of Business Research, Elsevier, vol. 62(6), pages 651-659, June.
    8. Hamid Etemad, 2022. "Perspective on early internationalizing firms: Three decades of international entrepreneurship developments," Journal of International Entrepreneurship, Springer, vol. 20(2), pages 195-217, June.
    9. Richard J. Arend, 2008. "Differences in RBV strategic factors and the need to consider opposing factors in turnaround outcomes," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(4), pages 337-355.
    10. Knudsen, Eirik Sjåholm & Belik, Ivan, 2023. "The Achilles heel of interconnected user networks: Network firms and the vulnerability of rapid decline," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    11. Michael Gerlich, 2023. "How Short-Term Orientation Dominates Western Businesses and the Challenges They Face—An Example Using Germany, the UK, and the USA," Administrative Sciences, MDPI, vol. 13(1), pages 1-17, January.
    12. Stoel, M. Dale & Muhanna, Waleed A., 2011. "IT internal control weaknesses and firm performance: An organizational liability lens," International Journal of Accounting Information Systems, Elsevier, vol. 12(4), pages 280-304.
    13. Leischnig, Alexander & Kasper-Brauer, Kati, 2016. "How to sell in diverse markets? A two-level approach to industry factors and selling factors for explaining firm profitability," Journal of Business Research, Elsevier, vol. 69(4), pages 1307-1313.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jomstd:v:41:y:2004:i:6:p:1003-1027. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.