Development of Competitive Advantage of Small Innovative Firm – How to Model Business Advice Influence within the Process?

Abstract

Abstract As the use of business advice has become recently considerably high among small innovative firms, the need to recognize its impact on firm's performance is observed. Despite a considerable amount of studies is available on this subject, the lack of comprehensive model, which enable analysis of business advice in the context of an entrepreneurial process taking place in the dynamic environment, has been identified. Therefore an attempt has been made to develop a theoretical model based on resource based view and dynamic capabilities approach, which provide a logic base for analysis of business advisor's role in development of competitive advantage within an entrepreneurial process. A modelled separation of the influence and the impact brings in the important consequences in indicating business advisor's involvement in relation to strategic decisions and thus directions of firms development. Additionally, an iterative approach to the process gives an opportunity to analyse a short as well as a long term impact and its durability.