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Research has attempted to explain why firms that outperform their peers lose advantage and become uncompetitive. This review identifies four explanations of relative advantage loss, which include:

The position of the "global player" (Porter 1989, Hassanein 1990): To assure the sustainability of this competitive advantage, firms may invest in global strategy, "build" a global organization, or "play" a global game.

Banker and colleagues have described the conceptual frameworks of strategic assets and strategy (Kotoyanagi, Banker & Wildavsky, 1993), a superior resource that confers a competitive advantage and explained the linkages between the firm's resources and its strategy.

Banker and Wildavsky distinguish between two sources of competitive advantage: market position and operational advantages. Market position is the ability to serve customers sooner and better than competitors, a strength that improves the ability to raise the price for a given quality.[23]

Operational advantages are those that can be expropriated by competitors, such as past cost efficiency.[23] Research suggests that this type of competitive advantage has generally been an unstable source of competitive advantage and is vulnerable to disruption by competitors (Chesbrough, 1989).[10]

The operational advantages of the shareholder are most often considered as free goods. Other forms of research suggest the opposite of this thesis. Both firm's resources and competitive advantage emerge from a balance between the amount of capital firms have and the returns it returns. As a result of this, competitive advantage is based on how a company can leverage the resources at its disposal. In other words, a company's competitive advantage is derived from the resources it owns and the way it applies this value.[7] d2c66b5586