Moving competitive advantage from the single firm to the extended enterprise
10/16/2000
In the future, says Dyer, a professor of management at Brigham Young University, competitive advantage will increasingly be created by teams of companies rather than by a single firm. It's what he calls "collaborative advantage," based on ever-closer partnerships between companies in the "extended enterprise" of a value chain. To illustrate his point, he draws on a detailed study of the automotive industry. The focus is on Toyota and Chrysler, two companies that, says Dyer, "have achieved staggering performance advantages relative to their major competitors
in large part because they have created more effective extended enterprises."