The Resource Advantage Theory of Competition: Implications for Higher Educational Institutions in Singapore

The purpose of this paper is to examine the educational strategic management implications of the Resource-Advantage Theory of Competition, proposed by Shelby D. Hunt (1995). Hunt essentially challenged `managers' and practitioners to engage in the discussion of competition based on what develops as `resource-advantage.' It is posited that comparative advantages in resources can lead to marketplace positions of competitive advantage, which then lead to a superior performance. The fundamental premise of this theory is that the equilibrium-based analysis of much mainstream economics actually eliminates both the heterogeneity and dynamism that marks real-world industrial competition. Instead, resources of an organization should be viewed as heterogeneous and imperfectly mobile, and intra-industry demand is substantially heterogeneous. A discussion on the competitive positions of some educational industry participants with regards to innovation, learning and competitive dynamics is provided. This revised version was published online in July 2006 with corrections to the Cover Date.