Abstract
This paper tries to probe practical wisdom as a source of sustainable competitive advantage for firms through the lens of the resource-based view (RBV) of strategy. It lays out a conceptual framework that posits practical wisdom as a VRIN (Valuable, Rare, Inimitable, Non-substitutable) resource that has the potential to generate and maintain a sustainable competitive advantage. The paper explains a 2x2 matrix depicting practical wisdom against competitive advantage, explaining the ways firms can critically utilise their practical wisdom to enhance their strategic position. Further, it confers the implications for organisational development, leadership, and decision-making processes. The study contributes to the aspect of intangible resources in the strategic management field and provides a foundation for future empirical research on practical wisdom in organisational contexts.
Keywords: Phronesis, competitive advantage, practical wisdom, Resource-based View