The purpose of this paper is to explore the relationship between the two most important
perspectives of the firm, the RBV and the KBV, by examining the relative impact of firmspecific
assets and knowledge capabilities on the firm’s competitive advantage. A composite
model is proposed which elaborates upon both perspectives causal logic with respect to the
conditions relevant for the firm success. Empirical findings suggest that firm-specific assets
and knowledge capabilities effects are both important determinants of the firms’
performance. Moreover, the findings suggest that knowledge capabilities behave like
dynamic capabilities leading to the continuous improvement-renewal of the firm-specific
resources and capabilities which, in turn, affect performance directly or indirectly through
their effect on strategy configuration.peer-reviewe
