Does law as resource bring a competitive advantage to companies?

Abstract

Purpose Resources and their analysis are essential to understand better companies’ internal and external dynamics and the weight each has in obtaining competitive advantages over the competition. This study aims to address the law and legal knowledge as a fundamental resource for companies to succeed in the markets to obtain a sustainable competitive advantage. Design/methodology/approach Based upon a sample of 200 managers, a structural equation model was used to validate the hypotheses under study. Findings Results show awareness and managers’ perception of the importance of law as a resource and its advantages for companies and the dichotomy between recognising this importance and not using it consistently. Originality/value Knowing the scope of business law and its growing importance for companies and being academically aware of the inexistence of studies that analyse the law as an individualised resource for companies, this study has a crucial contribution to the interconnection of these two fields – business and law.