The causal ambiguity paradox: Deliberate actions under causal ambiguity

Abstract

Causal ambiguity describes a lack of understanding of cause-and-effect interactions between resources and competitive advantage. As a central construct in strategic management, causal ambiguity constrains a firm’s ability to replicate valuable capabilities internally, yet, simultaneously, offers a means of protecting those capabilities from imitation by external agents. This analysis shifts the paradigm from looking at casual ambiguity as a given characteristic within organizations and examines the causal ambiguity paradox by looking at how organizations can strategically act on causal ambiguity as a mechanism for extending advantages. Specifically, we suggest actions that deliberately manage causal ambiguity can be a strategic capability and extend competitive advantages.