Appropriating economic rents from resources: An integrative property rights and resource-based approach

Jongwook Kim, Joseph T. Mahoney

Research output: Contribution to journalArticle

Abstract

Resource-based theory focuses on how economic value is created and sustained, providing the theoretical underpinnings for explaining and predicting sustainable competitive advantage. An implicit assumption of resource-based theory is that the firm's property tights to such resources are secure. However, where property rights to potentially value-creating resources are not fully secure, as in business contexts where multiple parties are jointly participating in creating economic value, potentially value-creating combinations of resources may not be realised. Similar difficulties may arise within the firm, where multiple stakeholders that supply factor inputs are jointly producing economic value. To address these theoretical issues, we map out a property rights theory of the fit-in that is grounded in resource-based theory on economic rents. We emphasise how firms create economic rents (ex ante) as well as how firms appropriate or capture economic rents (ex post).

Original languageEnglish (US)
Pages (from-to)11-28
Number of pages18
JournalInternational Journal of Learning and Intellectual Capital
Volume4
Issue number1-2
DOIs
StatePublished - 2007

Keywords

  • Appropriation
  • Distribution
  • Economic rents
  • Externalities
  • Institutions
  • Property rights
  • Stakeholders
  • Value creaton

ASJC Scopus subject areas

  • Strategy and Management
  • Organizational Behavior and Human Resource Management

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