Sustainable development and the sustainability of competitive advantage

Does the need for sustainable development hinder businesses ’ ability to create value? Is firm’s competitiveness negatively affected by considering that need? After quickly reviewing the main literature contributions on the relationship between business and society, and drawing from resource-based view of the firm and sustainable development literature, this paper presents a proposal for a dynamic and sustainable view of the firm. It shows how considering the changes introduced into the competitive landscape by sustainable development influences the way in which companies develop their resources, capabilities and activities, fostering the persistence of competitive advantages based on knowledge and innovation. Introduction: views of the relationship between the firm and society The relationship between businesses and society has been extensively treated in management literature. From the efficiency view, the social responsibility of businesse