AbstractThis paper critically examines the contribution of aspects of the resource‐based view of the firm to global competition in particular, and to strategic management in general. Three concepts—core competence, organizational capability, and administrative heritage—are defined and compared with the current mainstream economic tradition of strategy. The value of these concepts in analyzing and explaining competitive strategy is determined through a detailed field‐based case study of three firms in the worldwide bearings industry. It is found that the resource‐based view of the firm complements economic analysis, and that both are essential to a complete understanding of global