ABSTRACT
Reading this chapter should provide you with the conceptual and analytical tools to:
• Define tangible, intangible, and organizational resources as well as capabilities and core competences.
• Begin to understand the strategic significance of network externalities. • Understand the significance of complementary assets in the face of new
games. • Use the AVAC (Activities, Value, Appropriability, and Change) framework
for exploring the profitability potential of resources/capabilities. • Understand how to narrow down the list of complementary assets, capabil-
ities, core competences, or any other resource to important ones. • Understand the basic role of resources as a cornerstone of competitive
advantage.
