Strategizing by the government: Can industrial policy create firm-level competitive advantage?
Article first published online: 20 DEC 2013
Copyright © 2013 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 36, Issue 1, pages 97–112, January 2015
How to Cite
Lazzarini, S. G. (2015), Strategizing by the government: Can industrial policy create firm-level competitive advantage?. Strat. Mgmt. J., 36: 97–112. doi: 10.1002/smj.2204
- Issue published online: 16 DEC 2014
- Article first published online: 20 DEC 2013
- Accepted manuscript online: 24 OCT 2013 11:12AM EST
- Manuscript Accepted: 18 OCT 2013
- Manuscript Revised: 17 OCT 2013
- Manuscript Received: 23 FEB 2012
- industrial policy;
- competitive advantage;
- resource accumulation;
- governmental capability;
Despite the prevalence of governmental action devised to foster firms and industries, the link between industrial policy (IP) and competitive advantage has received scant attention in strategic management. I propose a model where such a link is mediated by the accumulation and churning of local resources and capabilities. I also introduce the concept of support-adjusted sustainable competitive advantage (SASCA), which occurs if a firm's observed performance is superior to the expected performance of competitors had they received the same array of policies. I argue that achieving SASCA through IP is a difficult endeavor and requires the interplay of three conditions: insertion in global production networks, geographical specificity, and governmental capability. Thus, the model expands the potential determinants of competitive advantage into the context of governmental intervention. Copyright © 2013 John Wiley & Sons, Ltd.