Abstract

This paper promotes the need for parsimony in terminology used in the actual value creating process for sources of sustainable competitive advantage by advocating for the need to have universally accepted definitions of the terms resources, capabilities and competencies. This urgent need for an explicit distinction of terminology is supported by recent literature. Specifically, this paper also advocates for the activity-resource-based view (ARBV), derived by integrating the activity and resource-based views, to be one of the main frameworks for analysing the actual value creation process for firms in the services industry. The paper also contributes to the bridging of the gap in strategic management literature and offers guidance for future research by urging scholars and researchers to embrace the empirical integration of the activity and resource-based views.