The Impact of a Company’s Strategic Actions on the Sustainable Competitive Advantage

Abstract

In recent years, strategic behaviors of firms have become statistically estimable from financial statements, and our understanding of these behaviors is deepening from the perspective of management accounting. Generic strategies (such as cost leadership strategy, and differentiation strategy) and organizational capital (which is an invisible asset of an organization and a resource for earning profits) are examples of such behaviors. In this study, we empirically identify the extent to which these strategic behaviors affect future profits at any given time.