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Competence of Industrial Organization and Competitive Advantages of Enterprise
YANG Rei-long, LIU Gang, LI Xing-long
2001, (4):
17-25.
DOI:
Analysis of competitive advantages of enterprises was an important research topic in theories and practice of strategic management of enterprises in 1980s. Its major theme is how enterprises gain sustainable competitive advantages. The latest theoretical findings of strategic management of enterprises since 1990s show that the industrial organization is the main source of long term excess profits and sustainable advantages in competition. However, traditional economic theories and dealing-cost economics hold a negative attitude towards this view, as they both examine the issue from a static perspective instead of a dynamic one. In fact, the author points out, accumulation of common knowledge during the dynamic interactive processes among enterprises will help improve efficiency of coordination among different industrial organizations. Consequently, differences in competence of coordination among individual industrial organizations will be revealed. Thus, competence of industrial organization is regarded as the basic source of long term profits for an enterprise.
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