New Directions in Strategic Factor Market Research: Processes and Mechanisms

The concept of strategic factor markets is a fundamental element of resource-based theories of competitive advantage. Barney’s (1986) article, which introduced the strategic factor market (SFM) concept, provided seminal insights on the origins of heterogeneous resource positions and subsequent research has made great strides studying the role of information in SFMs. Yet, aspects of SFM activity remain under-explored. This symposium highlights research that builds on and supplements the perspectives taken in prior work. In the session, Jay Barney provides the context for the research to be presented with comments on his 1986 article and the subsequent scholarship that has developed his ideas. The new research presents (1) a conceptual process model that that bridges buying resources in strategic factor markets with building resources through internal accumulation, (2) a formal analytical model of SFM activity that introduces competitive dynamics and seller-side considerations to offer several insights into the role of product market competition in factor markets, and (3) an empirical study that takes a knowledge-based perspective to explore how firms can derive superior ex ante resource valuations in the presence of symmetrical information. Taken together, the three papers provide diverse but complementary new perspectives on the role of SFMs in resource-based theories of strategy. Following the presentations, Jay Barney provides discussant comments on the papers and concludes with additional thoughts on the future of SFM research. Strategic Factor Market Processes: Buying and Building Resources Presenter: Catherine A Maritan; Syracuse U. Presenter: Thomas P. Moliterno; U. of Massachusetts, Amherst How Do Strategic Factor Markets Respond to Rivalry in the Product Market? Presenter: Olivier Chatain; U. of Pennsylvania Knowledge Asymmetries in Strategic Factor Markets Presenter: Rory Eckardt; U. of Massachusetts