Factor‐Market Rivalry and Competition for Supply Chain Resources

Abstract

Organizations monitor factor‐markets for strategic inputs that directly contribute to the firms' unique advantage. Thus, managers may be unaware of essential supporting inputs that bundle with strategic inputs to sustain the organization's success. Increasingly, supply chain resources are part of that strategic bundle of resources essential for achieving the firm's competitive advantage. This research employs a conceptual theory‐building approach to examine competition among diverse industries in factor‐markets using the example of supply chain services and the relatively new lens of factor‐market rivalry theory. Data relative to air cargo capacity in China, port capacity in South Vietnam and the U.S. port and rail system provide the context for theoretical and practical insights into the implications of factor‐market rivalry on firm performance.