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Interest alignment and competitive advantage

Author: Gottschalg, Oliver ; Zollo, MaurizioINSEAD Area: StrategyIn: Academy of Management Review, vol. 32, no. 2, April 2007 Language: EnglishDescription: p. 418-437.Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: This paper articulates a theory of the conditions under which the alignment between individual and collective interests generates competitive advantage. Conditions for the generation and the sustainability of competitive advantage based on three interdependent types of motivation are identified under different scenarios with progressively more realistic assumptions on the heterogeneity and adaptability of firm characteristics. The analysis indicates the need to consider motivational processes as a complement to current resources and competence-based approaches in a comprehensive theory of competitive advantage.
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This paper articulates a theory of the conditions under which the alignment between individual and collective interests generates competitive advantage. Conditions for the generation and the sustainability of competitive advantage based on three interdependent types of motivation are identified under different scenarios with progressively more realistic assumptions on the heterogeneity and adaptability of firm characteristics. The analysis indicates the need to consider motivational processes as a complement to current resources and competence-based approaches in a comprehensive theory of competitive advantage.

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