COMPETING FOR RESOURCES AND CAPABILITIES IN DYNAMIC FACTOR-MARKETS

This paper analyzes the dynamics in resource development and the complexity of resource origin. Three factors – stakeholders, interactions, and scarcity – prove helpful to explain both dynamics and complexity of factor-markets. We build on these three factors and propose a systemic model on dynamic interactions to illustrate the structural characteristics of a factor-market. We suggest to managers to analyze first factor-markets separately, so they can collect as much information as possible on resource relationships with strategic importance. Then this information is incorporated in a “resource matrix,” which facilitates analyzing the interdependencies of various resource relationships and helps practitioners develop an integrated strategy to compete in factor-markets.