Creation and preemption for competitive advantage

Competitive advantage arises from the differential among firms along any dimension of firm attributes and characteristics that allows one firm to better create customer value than do others. Generic sources of competitive advantage include ownership of assets or position; access to distribution and supply, as well as proficiency ‐ knowledge, competence, and capability ‐ in business operation. To achieve and sustain competitive advantage, a firm needs to creatively and proactively exploit the three generic sources, preempt rivals attempt at these sources, and/or pursue any combination of proactive and preemptive efforts. Juxtaposing creation and preemption as well as ownership‐based, access‐based, and proficiency‐based sources, this article advances an integrative framework that helps management practitioners systematically analyze the nature and cause of competitive advantage.