Tung-Shan Liao is an assistant professor at the College of Management, Yuan Ze University.
The Vicissitudes of Competitive Advantage: Empirical Evidence from Australian Manufacturing SMEs†
Version of Record online: 29 DEC 2013
© 2013 International Council for Small Business
Journal of Small Business Management
Volume 53, Issue 2, pages 469–481, April 2015
How to Cite
Liao, T.-S., Rice, J. and Lu, J.-C. (2015), The Vicissitudes of Competitive Advantage: Empirical Evidence from Australian Manufacturing SMEs. Journal of Small Business Management, 53: 469–481. doi: 10.1111/jsbm.12078
This paper is sponsored by the National Science Council, Taiwan (Grand No: 100-2410-H-155-042). Special thanks also to the Australian Bureau of Statistics for its permission to use the Business Longitudinal Survey data.
- Issue online: 13 MAR 2015
- Version of Record online: 29 DEC 2013
- National Science Council, Taiwan. Grant Number: 100-2410-H-155-042
The goal of this study is to illustrate the variance pattern of competitive advantage. On the basis of an a priori model drawing on the Schumpeterian factors mediating the effects of innovation investment on firm performance, this paper conducts a Multiple Indicator Multiple Cause analysis on the intertemporal competitive advantage. The results suggest that the composition of sustainable competitive advantage is a series of short-term advantages. Either sustaining or creating competitive advantage requires concomitant interaction between innovation and effective market engagement. This paper highlights innovative efficiency of such interaction as an influence on a firm's evolution of market fitness in the marketplace.