Can Competitive Advantage Be Sustainable Under Knightian Uncertainty? A Resource-Capital Perspective

By enriching the resource-based view with the structural Austrian capital perspective, we develop a typology of a firm’s capital structure with important implications for how firms respond to supply shocks. During resource shocks, the capital structure facilitates or hinders a manager’s ability to reconfigure resources and becomes a critical determinant of the sustainability of competitive advantage. We propose a typology that distinguishes firm...