Open-access How to compete in the context of transience? An analysis based on the transient competitive advantage model

Abstract

Purpose  To analyze the business scenario of technology companies in the state of Paraíba, Brazil, within the scope of transient competitive advantages.

Theoretical framework  The study is based on the theory of transient competitive advantage, which proposes a paradigm shift in strategy. This theory is gaining more and more strength given that change is the only constant in today’s competitive environments.

Design/methodology/approach  A multiple case study was conducted with four technology companies that graduated from business incubators in Paraíba. Data were collected through triangulation of document analysis, observation, and semi-structured interviews based on the TCAM model. The data were analyzed qualitatively.

Findings  The results showed a “consistent, but unsystematic and reactive environment” in three of the companies and “a flexible, but inattentive environment” in the fourth. Therefore, in the first case, it is clear that healthy disengagement does not happen intentionally. In the second case, crucial time is wasted, causing opportunities to be missed and hindering the ability to transition from one advantage to another.

Practical & social implications of research  The main implication of the study was to present the application of the TCAM in a different state from previous studies. This proved to be timely given that two unprecedented scenarios were identified.

Originality/value  This study is based on a new strategy paradigm suitable for assessing companies’ competitiveness in the current scenario. However, there are few studies on its dissemination. Two unprecedented scenarios were found within the scope of the TCAM, which reinforces the study’s contribution to expanding the model. It also reinforces the idea that applying the TCAM to different realities is opportune.

Keywords:
Transient Competitive Advantage Model (TCAM); transient competitive advantage; competitive advantage; new strategy playbook; strategy

1 Introduction

Over time, companies have naturally developed their respective competitive advantages that help them exploit their market shares. However, the increased competitiveness in various industries has made the traditional sources of competitive advantage more vulnerable. Consequently, there is a movement in the literature that questions the stability of the concept of competitive advantage and seeks to formulate more suitable, targeted strategies for modern, flexible companies.

In most industries, hypercompetition reinforces the transient nature of competitive advantage, so companies must continually explore new ideas to renew their portfolio of such advantages (Chereau & Meschi, 2018; Hermina et al., 2018; Botes & Pretorius, 2020). More recent literature has changed the view on sustainable competitive advantage, creating space for the theory of transient advantage. This theory emphasizes the need for companies to develop and exploit multiple opportunities at the same time (Donnelly et al., 2020; Fasnacht & Proba, 2024; Kiarie et al., 2025).

The theory of transient competitive advantage emerged from McGrath’s (2013) ideas presented in his book The End of Competitive Advantage and involves adopting practices that adapt to environments in which advantages come and go. This represents a paradigm shift in strategy, gaining strength as change becomes the only constant in today’s competitive environments (Gupta et al., 2018; Muneer, 2019; Forrest & Nightingale, 2023; Forrest & Tallapally, 2023; Kihiu & Kaluyu, 2024; Khan & Shams, 2025). As Forrest (2018) points out, the secrets behind many so-called sustainable competitive advantages have become common knowledge. Therefore, new competitive advantages must be introduced frequently and evolve quickly.

In this scenario, Salgado et al. (2022) developed the Transient Competitive Advantage Model (TCAM). The TCAM operationalizes the concept of transient competitive advantage, allowing the analysis of companies’ business scenarios. The TCAM was applied through a multiple case study with of four IT startups in the state of Rio Grande do Norte, Brazil. These startups graduated from Brazilian business incubators and managed to reveal realities that are still far from competition in the transient advantage era, despite the dynamic context in which they operate.

Since then, the TCAM has been referenced in the literature by Cavalcanti (2023), Amboyi et al. (2024), and Khan and Shams (2025), and applied in different sectors and contexts by Amangeldievna (2024) and Fernandes et al. (2023).

Amangeldievna (2024) examined whether the competitive strategies of IT companies in Kazakhstan contribute to maintaining competitiveness and addressing the particular issues in the Kazakhstani market. The author concluded that, among the tools and models used, the TCAM plays an important role in supporting structured project management methodologies because it emphasizes the importance of continuous resource reconfiguration, rapid adaptation to new opportunities, and recognizing that competitive advantages are often temporary. The TCAM revealed that the companies analyzed need to implement more structured innovation management processes and regularly evaluate their project portfolios to ensure efficient resource allocation. The author argues that combining TCAM principles with modern project management methodologies provides a solid foundation for Kazakhstani IT companies to navigate the complexities of the global market.

Another application of the TCAM can be found in the work of Fernandes et al. (2023), who conducted a case study of three technology companies in the state of Rio Grande do Norte, Brazil, that also underwent incubation processes. In this study, the authors emphasized that the framework is straightforward and easy to implement. Despite the contributions of the aforementioned studies, particularly those of Salgado et al. (2022) and Fernandes et al. (2023), there is a limitation due to them being conducted in the same state – Rio Grande do Norte – in Brazil. Therefore, the literature still has limitations in understanding this phenomenon in heterogeneous contexts, especially in Brazil. Due to the economic, institutional, and social differences between states, it is unclear whether the previously identified results can be generalized to other contexts. Expanding the analysis to less-explored contexts contributes to both empirical representativeness and the evaluation of the generalizability of the results found in the literature. Thus, this study aims to determine how state characteristics influence the business scenario of Brazilian technology companies in the context of transient competitive advantages. The study’s main contribution is broadening the theoretical understanding of transient competitive advantages by considering an underexplored context in the literature.

In this context, the objective of this study was to analyze the business scenario of technology companies in the state of Paraíba, Brazil, in terms of transient competitive advantages. The TCAM was used for this analysis, considering the following elements: continuous reconfiguration, resource allocation, leadership and mindset, innovation proficiency, and healthy disengagement. The scenarios generated at the end of the TCAM application are expected to inform management decisions, enabling managers to take consistent, targeted steps to address deficiencies or enhance strengths.

The rest of the article is structured as follows: first, it addresses aspects related to transient competitive advantages and the TCAM; subsequently, it presents the methodology and results; and finally, it presents the conclusion.

2 Theoretical background

Basic external parameters, such as technology, politics, the environment, social trends, customer habits, and business models, are changing at an unprecedented speed. This highlights the fact that traditional strategy theory may fail to prepare organizations for future competitive scenarios (Koller, 2016). The concept of transient competitive advantage evolved from the ideas of McGrath (2013), who proposed shifting from Michael Porter’s theory of sustainable competitive advantage to more adaptive forms of strategy (Pessima & Dietz, 2019). There has been a proliferation of intellectual attention given to the concept of transient competitive advantage, suggesting that it is an emerging area of research in strategic management (Dagnino et al., 2021).

As Forrest et al. (2020) point out, companies need to constantly design and apply new strategies in the environment of transient competitive advantages. The authors argue that the key to achieving this is reconfiguring and renewing advantages internally because assets, people, and capabilities transition from one advantage to another through the reconfiguration process.

McGrath’s proposal challenges the idea that intrasectoral competition is the primary competitive threat. Instead, he highlights the concept of “competitive arenas” and builds on D’Aveni and Gunther’s (2007) idea of hypercompetition to describe “waves” of competitive advantage. Competitive arenas are defined by the connection between customers and solutions, i.e., any platform where interaction can take place, rather than indicating a specific space or location (Peranginangin, 2015). The concept of waves emphasizes the cyclical nature of competitive advantages, highlighting their beginning and end (Gottschalck & Günther, 2017; Forrest et al., 2020).

Therefore, any competitive advantage goes through a life cycle with five main phases: launch, ramp-up, exploit, reconfigure, and disengage. According to McGrath (2013), the launch phase involves identifying opportunities, allocating resources, and assembling a team to create something new. If the opportunity proves promising, the advantage enters a ramp-up period, during which the business idea is expanded. The author sees the exploit phase as a window of opportunity to develop strong strategic positioning and explore the associated competitive advantage. The reconfigure phase involves reorganizing teams and assets. Disengage means getting rid of assets and other capabilities that are no longer relevant for the future by selling, discontinuing, or adapting them before the original advantage is completely eroded.

As Forrest et al. (2020) highlight, a real challenge for all successful companies today is adjusting to effectively ride these waves of competitive advantages. According to the authors, considerable investments must be made in flexibility and innovation. Regarding flexibility, companies must be extremely responsive to environmental changes and recognize the need for change, adapting sooner than other companies. Innovation should be continuous and integral to everyone’s work rather than an episodic endeavor.

However, despite the fact that the concept of transient competitive advantage is a new frontier in strategy and the competitive landscape, literature on the subject is scarce (Kaharuddin et al., 2017), particularly practical scientific studies. This makes it difficult to disseminate the concept. Recognizing this gap, Salgado et al. (2022) developed the Transient Competitive Advantage Model (TCAM). The TACM aims to operationalize the concept of transient competitive advantage, allowing the analysis of business scenarios. The TCAM consists of five main elements (Salgado et al., 2022):

  1. Continuous reconfiguration: This is the “heart” of transient competitive advantage because riding waves of advantages becomes an ongoing process of transformation rather than a periodic, traumatic restructuring. In the context of transient advantages, changes do not occur sporadically, but rather in an environment that recognizes the constant mutation of the market and its components.

  2. Resource allocation: This aims to determine if a company can flexibly use resources and reconfigure assets as necessary. This process must be carried out skillfully and quickly to allow the company to cope with the effects of transient advantages.

  3. Leadership and mindset: This highlights the importance of leaders paying attention to early warnings in an environment where advantages come in waves, leading companies from one wave to the next. Leaders must pay close attention to signs of change without overlooking the fact that the most valuable information in this scenario is often the most challenging and shows the greatest potential for error.

  4. Innovation proficiency: There is a strong emphasis on proficient innovation, reflecting a disciplined, methodical, and orderly process as opposed to a sporadic, incidental, or chaotic one. The model does not aim to determine if a company can innovate, but rather if it employs a continuous, well-managed innovation process.

  5. Healthy disengagement: This involves managing the last phase of the life cycle of transient advantages, which includes disposing of assets that will be irrelevant in the future. This requires a timely and strategic approach before the original advantage dissipates. Disengagement should be viewed as part of the normal business cycle.

As shown in Table 1, these elements are explored through questions.

Table 1
Questions on the TCAM

Therefore, the main purpose of the TCAM is to analyze the elements together and understand how companies have developed their strategies based on them (Salgado et al., 2022). This model highlights what is relevant for competition in the new transient competitive advantage scenario. The analysis follows the logic presented in Table 2.

Table 2
The TCAM

In summary, the TCAM considers these elements together to generate scenarios illustrating how companies have employed their strategies and what is relevant for transient competitive advantages. Table 3 describes possible scenarios.

Table 3
Summary of TCAM Scenarios

These scenarios will guide future actions aimed at resolving discovered problems and strengthening elements that performed well (Fernandes et al., 2023). In short, as competitive advantages become more transient, managing transitions from one advantage to the next is seen as the key to long-term viability. However, this is naturally difficult to execute in practice (Santalainen, 2019).

3 Method

This study aims to analyze the business scenario of technology companies in the state of Paraíba, Brazil, within the scope of transient competitive advantages. This is an applied research project classified as a multiple case study because it is an empirical investigation of a real situation within its own context. Multiple case studies involve investigating two or more cases within the same research project, using replication logic to compare evidence and strengthen the analytical and theoretical robustness of the findings (Yin, 2018). Convergence or divergence between cases strengthens the theoretical validity of the research. In this study, a comparative analysis of the cases was performed in addition to the specific analysis of the companies to strengthen the findings.

The Brazilian information technology sector has significantly increased in economic relevance in recent years. According to data from Brasscom, the sector represented approximately 6.5% of Brazil’s GDP in 2024, generating around R$762.4 billion (Barbosa, 2025). Brazil simultaneously ranks tenth globally in information technology investments, consolidating its position as the main market in Latin America. In addition to economic growth, the sector stands out for its high job creation, rapid technological transformation, and intense competitiveness (Barbosa, 2025). In the technology sector, rapid technological obsolescence and intensified competition shorten the duration of competitive advantages, requiring constant reconfiguration of resources and capabilities (D’Aveni & Gunther, 2007; McGrath, 2013). This scenario directly relates to McGrath’s (2013) perspective of transient competitive advantage, which holds that sustainable advantages become increasingly rare in dynamic markets.

A survey was initially conducted in October 2024 with all companies that had already graduated from technology business incubators in the state of Paraíba, Brazil, for this study. The survey yielded 77 companies. After contacting their representatives, 55 were discarded because they were no longer operational, and 18 declined to participate in the research. Therefore, the study analyzed four companies originating from the two main incubators in the state (two from each): the UFPB Agency for Technological Innovation (INOVA), linked to the Federal University of Paraíba (UFPB), and the Technological Incubator for Creative and Innovative Enterprises of Campina Grande (ITCG), linked to the Paraíba Technological Park Foundation (PaqTcPB).

Data collection, carried out from November 2024 to February 2025, relied on multiple sources of evidence: semi-structured interviews, document analysis, and direct observation. This strategy, recommended by Yin (2018), strengthens construct validity in case studies through data triangulation (Supplementary Material Data 1, Appendix A, Semi-Structured Interview Guide).

Semi-structured interviews were conducted using the TCAM questions, as described by Salgado et al. (2022). Interviews are a primary source of evidence in case studies because they allow us to understand the participants’ perceptions, experiences, and interpretations of the phenomenon under investigation (Yin, 2018). The interviews were carried out with representatives from each of the four companies, and data analysis followed a qualitative approach. There were four interviews, one for each company analyzed. Table 4 summarizes the interviewees.

Table 4
Summary of the Interviewees

The interviews were conducted on site, and audio recordings were made for subsequent transcription. The analyzed documents corresponded to the evidence that the interviewees presented to support and corroborate the reported information, providing factual backing to the data obtained. Notable among these documents were meeting schedules, email messages, and records related to selection and contracting proposals, as discussed in the results. Direct observation took place during company visits and through observing managers’ behavior during interviews. This captured contextual and nonverbal aspects that would likely not have emerged from verbal accounts alone. Varying stances and attitudes could be discerned, and aspects of work environments and manufacturing processes could be observed where applicable.

During data analysis, evidence from these three sources was systematically cross-referenced: interview findings were checked against the provided documents and observation notes to identify convergences that corroborated the interpretations and divergences that required further analytical scrutiny. This triangulation process reduced the risk of bias associated with relying on any single source, thereby enhancing the reliability and validity of the conclusions, in line with Yin’s (2018) recommendations.

As shown in Tables 1 and 2, the TCAM was adopted as an interpretive model. Data analysis was performed using content analysis, which classifies arguments by distributing them among predefined categories based on a literature review on the research scope or constructed from the collected information throughout the analysis (Flick, 2022).

According to Bardin (2016), there are three phases: (i) pre-analysis, during which the initial ideas are organized systematically; (ii) exploration of the material, which essentially comprises coding, decomposing, or enumerating the data; and (iii) treatment and interpretation of the results obtained. In summary, the first phase involved transcribing the interviews. The second phase entailed coding the transcriptions by concepts based on the elements of the TCAM: continuous reconfiguration, resource allocation, leadership and mindset, innovation proficiency, and healthy disengagement. The third phase entailed analyzing and comparing the results with previous studies. It should be noted that all coding and analysis was done manually, without the aid of any software (Supplementary Material Data 2, Appendix B, Codebook; Supplementary Data 3, Appendix C, Anonymized Coding Matrix).

To address ethical and confidentiality issues, the study used fictitious names for the interviewees to preserve their identities. At the time of the interview, the interviewees were given and signed written terms of consent and confidentiality, ensuring their anonymity and the confidentiality of the information provided.

4 Results and discussion

The results of the investigation carried out herein will be presented and discussed in sections reporting on the application of the TCAM to the assessed companies.

4.1 Company A

Company A has been operating in the renewable energy market for five years, focusing on helping organizations reduce energy costs through intelligent management. Due to its constant search for advanced technologies, it operates in a very dynamic environment.

The application of the TCAM in Company A begins with the question of the continuous reconfiguration element. Interviewee A points out that this change became natural for the company due to the market’s rapid evolution. The company is always seeking the most financially accessible, widely used, efficient, and easy-to-use technologies for the end customer. Frequent change is also aligned with the dynamic capabilities perspective (Teece et al., 1997) because, in environments characterized by rapid technological changes and high competitiveness, organizations must constantly reconfigure resources and skills to sustain their market performance.

Regarding the systematic way in which continuous reconfiguration takes place within the company, the interviewee mentioned that constant brainstorming meetings are held, as can be seen in the following excerpt:

In product meetings, we always brainstorm and create conversation strategies with the specific client, we listen to them to gather more information and so this aligns very much with the strategy [...] we have weekly meetings to discuss that. [Interviewee A]

Additionally, Interviewee A presented their meeting schedule for the next two months, which reinforced his statements. Therefore, it is clear that the company is flexible and can implement changes to its daily routine. Additionally, the company can naturally reconfigure its activities. Recent literature on dynamic capabilities highlights this ability to naturally reconfigure activities as a characteristic of organizations that tend to have environmentally attentive systems and agile decision-making processes (Pitelis et al., 2024). This highlights the proximity between these two theories.

Given the positive response to the first element, the TCAM recommends continuing with its application to questions about resource allocation and leadership and mindset.

Regarding resource allocation, the interviewee stated that they had to learn how to allocate resources from the beginning because they did not have financing. This initial experience helped them become flexible and creative, as shown in the following excerpt:

Due to necessity, we had to do this. We started without any resources [...] it’s not the ideal scenario to take resources from one place and put them in another, but it happens [...] The few resources we had, we knew how to use most creatively [...] The company grew, and the product advanced, and we received two investments, but we had to understand where these resources would be allocated in a very intelligent way. [Interviewee A]

Therefore, even if the practice of allocating company resources did not occur in an appropriate scenario, it is clear that the company made this practice easier to carry out. When asked about the definition of funds and the length of cycles, Interviewee A shared that planning is carried out for both longer and shorter cycles, but mainly for shorter ones of up to one year. In this short-term planning, the interviewee reported imagining the worst-case scenario for the organization. For example, he thinks about the possibility of not acquiring any new customers. This allows him to allocate resources in the best possible way, i.e., without having to fire any employees or experience any financial difficulties. The interviewee stated that he also plans for long-term funds, up to five years, but this is not frequent.

Regarding leadership and mindset, Interviewee A stated that he and a partner, the company’s leaders, are always aware of change. The following excerpt illustrates this:

We always work on characteristics, triggers, forms of mentality to deal with certain issues and people, and this was only possible because we created this very strong culture [...] We managed to train leaders who are adept at changing and especially with a very empathetic outlook among the employees, their leaders, so that we can have dialogues that can advance mainly in the construction of the areas in a fluid way. [Interviewee A]

At this point, the interviewee displayed a conviction, as illustrated by an email he received from an employee congratulating him on a training session he had conducted. Furthermore, a form was developed to seek feedback from employees on leadership and management in general. According to the interviewee, the form, which is sent monthly and answered anonymously, has shown a response rate of around 70%.

Nevertheless, in response to the feedback, the manager reported that an external company had recently conducted interviews with the employees. The results of the analysis indicated a work environment conducive to questioning. This finding corroborates the exploratory logic that underpins organizational ambidexterity. This logic essentially presupposes an openness to questioning the status quo, as well as exploration, experimentation, and risk-taking. Such practices can only thrive in organizational environments that tolerate and encourage the questioning of existing routines and assumptions (Kassotaki, 2022). It also corroborates the theory of absorptive capacity because the ability to transform external knowledge into organizational action is facilitated by the knowledge environment in which the firm operates. Contexts that are richer in accessible information amplify the benefits of this ability (Stettler et al., 2025).

Similarly, in the theory of transient competitive advantages, this is an essential characteristic for companies that wish to be attentive to signs of change. The following excerpt highlights this characteristic:

The result obtained after the diagnosis was that the company’s environment allows people to comfortably have the autonomy to openly say anything. [Interviewee A]

After receiving positive responses to the aforementioned elements, the TCAM indicates that the interview will move on to questions about innovation proficiency and healthy disengagement. Concerning the former, Interviewee A pointed out that innovation is systemic, as discussed in the following excerpt:

Yes, even when this idea comes up, it doesn’t come out of nowhere. It has to be based on some context [...] Because if we implement random things, in the end, it might not make sense, and we might be wasting time and money [...] We do a lot of brainstorming between all areas [...] These brainstorming sessions occur every two months. [Interviewee A]

The interviewee stated that he chooses to hold brainstorming sessions with people from all areas because he believes it is important for the organization. He imagines that, with different points of view from different people, it is possible to make more informed decisions. The large number of these meetings was noticeable in the company environment. During the visit, it was possible to observe the different sectors using glass boards for sectoral discussions. This is a clear example of the importance of data triangulation, where the interview finding was verified by observation, identifying a convergence that corroborates the interpretation.

When we asked about the company’s product development process, the interviewee pointed out that:

We can’t reach a finished product without first creating a prototype or MVP (minimum viable product) [...] Everything we create, we create an MVP using as few resources as possible to validate some hypothesis. [Interviewee A]

To reinforce this statement, the interviewee presented the company’s portfolio, which included all the prototypes developed in 2024.

Finally, regarding healthy disengagement, a negative response was obtained; however, some actions indicating disengagement were identified, though not in an intentional and coordinated way. This is shown in the following excerpt:

Maybe the intention isn’t like ‘Ah, I’m going to do this,’ but naturally, we try to insert ourselves in environments where these things are discussed [...] We usually test before abandoning, but there may be times when we’re doing something and we see that it won’t work, whether due to regulation or the difficulty of finishing the product. We already think about scenarios. [Interviewee A]

Furthermore, the interviewee reported that he uses important tools for companies interested in reconfiguration. This is a positive thing. However, there is no focus on abandoning activities; disengagement is not a priority. The following excerpt highlights this:

Internally we work with the Objective Key Results (OKR) methodology, and we do cycles every three months because we see that we have greater control over key activities and objectives in certain areas, and then we can identify if something is okay or if it needs to be changed [...] Because of this monitoring, in addition to yearly planning, every three months, we can understand if something is going the way it should or if it’s changing. [Interviewee A]

Once again, the interviewee presented the planned agenda for the aforementioned cycles. Therefore, Company A’s situation is characterized as a “consistent and systematic but reactive environment,” which implies limitations concerning healthy disengagement. Although the organization views flexibility and change as natural and responds positively to the first four elements, it loses the opportunity to advance strategically before the source of competitive advantage is exhausted by not intentionally carrying out the healthy disengagement process.

The company has been moving toward change based on the processes of continuous reconfiguration, resource allocation, leadership and mindset, and innovation proficiency. However, to stand out in a context of transitory advantages, it is suggested that the organization pay attention to early signs of decline and systemically identify when its source of competitive advantage may be exhausted.

4.2 Company B

Founded in 2020, Company B operates in the kombucha market. Kombucha is a 100% natural, fermented drink made from green tea. It is part of an innovative market whose processes are heavily influenced by technology and consequently impacted by changes.

Regarding continuous reconfiguration, Interviewee B states that change happens frequently and that kombucha is difficult to standardize and make consistently. Therefore, the organization constantly studies and improves the product. When asked whether the company encounters difficulties in making adjustments requested by consumers, the response was as follows:

Change is very common within our company [...] When the customer requests something and gives feedback that adds to the brand, we can adapt and change when necessary [...] We usually evaluate first and understand if it makes sense because we work with new food products. [Interviewee B]

Based on this positive response, we proceeded to question resource allocation. Regarding this, the interviewee states that it is already incorporated into the company:

I think that the Brazilian reality of entrepreneurship always has to have this flexibility [...] It happens, I think that currently it’s less because we ended up receiving an investment [...] But if it’s necessary to relocate. We do it. [Interviewee B]

The interviewee clearly showed pride in this response and displayed proof that the company was selected to receive the aforementioned investment. Then, we moved on to the leadership and mindset element. The interviewee stated that she prioritizes open-minded leadership and a work environment that encourages employees to voice improvements needed. The following excerpt highlights this:

We usually give periodic feedback. Our company doesn’t have that many employees, so this feedback is usually easier to do on a day-to-day basis in a more informal way [...] Our sales representative, for example, always brings feedback from customers, and we listen to and take it into consideration, as they have direct contact with consumers. [Interviewee B]

Regarding innovation proficiency, the interviewee stated that kombucha itself is already an innovative drink and that the organization seeks to pay close attention to systematizing innovation in terms of processes, methodology, and manufacturing. Furthermore, the interviewee stated that innovation is a valuable asset and that she constantly invests in research, as highlighted in the following excerpts:

Part of our money goes to innovation because, as I said, kombucha is already innovative, so we constantly need to research to find innovation. Only then can we stand out. [Interviewee B]

We need to create a prototype that reads some parameters of the fermentation kinetics in real time [...] Today, the fermentation process takes 15 to 20 days, so we always have to collect data and samples throughout this process to study or carry out specific analyses, such as pH [...] The idea is to do this with a fermenter in real time, monitored by software, in other words, an innovative process! [Interviewee B]

The interviewee then mentioned the software used in the fermentation process, which had been presented to the interviewers prior to the interview.

Interview B’s ability to seek and recognize the value of new external knowledge and apply it corroborates the logic of absorptive capabilities (Cohen & Levinthal, 1990) since the company innovates better when it can learn from the outside, internalize the knowledge, and transform the information into action.

Regarding healthy disengagement, as obtained in Company A, the response was also negative. The interviewee explained that, although she believes it is necessary to remain alert to early signs of a decline in an advantage, the company does not have a system for doing so. This aspect is vital in contexts of transient competitive advantages and hypercompetition. In these contexts, constant attention to signs of change is no longer an optional management practice; it is a condition for survival. This is because windows of advantage are increasingly narrow and contingent on the moment and sectoral context (Lindskov et al., 2023).

The interviewee highlighted that, from the company’s inception until the time of the interview, it had never been necessary to withdraw from any activity. The following excerpt illustrates this point:

Food is very subjective, and it’s difficult to make a correct assessment and determine its value. We never need to disconnect from anything, and we don’t even have any system that predicts anything, but from what I imagine, I believe that we could do well in this sense [...] Today, we need to systematize better, to have more monitoring of some issues, such as the acceptability of some products and flavors. [Interviewee B]

When answering this last point, the visibly tired interviewee showed a text document with suggestions for future flavor testing.

Therefore, it is clear that Company B does not have a system that predicts when its advantage is about to run out. This makes the healthy disengagement process difficult if necessary and prevents new advantages from emerging.

Thus, as with Company A, Company B resulted in a business scenario of a “consistent and systematic but reactive environment.” Therefore, the same suggestions for Company A can be applied to Company B.

One final observation is that, although companies A and B have similar business scenarios, everything presented and observed, whether the company’s structure or the interviewees’ knowledge, makes it clear that Company A is better prepared to take the next step and compete in a context of transient competitive advantages.

4.3 Company C

For 26 years, Company C has operated in the educational sector, providing distance education services, including courses, digital hosting, consulting, content production, and customization, primarily based on the Moodle platform. The educational sector is constantly changing and greatly influenced by technology, particularly with regard to its impact on teaching models and the enhancement of performance facilitated by its resources.

Regarding continuous reconfiguration, Interviewee C points out that it is intrinsic to the company and happens systematically. The interviewee mentions the company’s constant testing of new hypotheses, as seen in the following excerpt:

There have been several changes in the business model, and I believe we’re changing again. I think maybe every four years, every five years on average there’s a change. [Interviewee C]

Given the positive response to the first element, we moved on to the elements of resource allocation and leadership and mindset. Regarding the former, the interviewee responded that the company allocates and manages its resources well, mainly citing the strategic reallocation of human resources within the company, as shown in the following excerpt:

They are multidisciplinary people [...] each person performs two, three, four different functions. There’s an intersection between what one person does and what another does [...] so everyone is capable of being relocated, even if each one has some specialty in a certain activity. [Interviewee C]

Regarding leadership and mindset, the interviewee points out that leaders are always attentive to change and open to challenges. Weekly feedback meetings are reportedly held to identify opportunities and discuss observed situations, as highlighted in the following excerpt:

I’m always asking, ‘What did you think of this issue? What do you think of that?’ Not only am I open, but I also seek opinions, precisely to understand everyone’s point of view. [Interviewee C]

This attitude was noticeable even before the interview when he passed an employee on his way to his office and asked for his opinion on a new course that had been sent to him.

The company shows special attention to innovation proficiency by allocating exclusive professionals to this area. Innovation is a constant in its history, as discussed in the following excerpt:

The change from one approach to another, the pivot, was motivated by the perception of a change in scenario, and this change in scenario required innovation [...] constantly thinking about strengths, weaknesses, opportunities, and threats. [Interviewee C]

The predominance of practices focused on continuous innovation suggests that the company depends less on static advantages and more on its capacity for organizational renewal. This aligns with the logic of dynamic capabilities (Teece et al., 1997). Recent research confirms that this capacity for renewal is activated by organizational learning and leadership mechanisms, moving beyond the original perspective that focused solely on resources (Bornay-Barrachina et al., 2025).

Finally, regarding healthy disengagement, the interviewee said that the company can disengage from activities when they are no longer working, but not by disposing of assets or other skills that will be needed in the future. The following excerpt clarifies this point:

We’ve already tried marketing in a certain market segment, but it didn’t work. We turn the page and move on to another opportunity. We tried a new product and it didn’t work. We changed immediately. [Interviewee C]

These findings align with the perspective of organizational ambidexterity (Tushman & O’Reilly III, 1996). This perspective highlights that the company seeks to balance exploitation of new opportunities (exploration) with maintenance of consolidated operations (exploitation). This is because the response to innovation is difficult to predict, while disposing of assets is difficult due to their consolidated nature. This contradicts the logic of transient competitive advantage. This balance between exploration and exploitation creates conflicting organizational demands that are difficult to fulfill simultaneously (Kassotaki, 2022), which helps explain the observed tension.

Therefore, it is concluded that Company C’s business scenario, as well as those of the previous two companies, is one of a “consistent and systematic but reactive environment,” which implies limitations concerning healthy disengagement.

Compared to the previous two companies, Company C appears to lag behind in competing amid transient competitive advantages, despite having the potential to do so. This conclusion is based on more rigid structural factors and, above all, the interviewee’s limited knowledge and lack of interest in the topics discussed.

4.4 Company D

Company D has been in the communications market for 15 years, primarily focusing on corporate events. The rapid emergence of new technologies and techniques in communication, especially after the onset of the pandemic, has made this sector even more hypercompetitive.

Regarding continuous reconfiguration, Interviewee D points out that it is a constant and natural part of his business, as highlighted in the following excerpt:

Over time, new market needs emerge, and if we can meet them, we incorporate them naturally as an opportunity and develop that activity from that moment on. [Interviewee D]

Given the positive response, resource allocation was analyzed. The company presented a profile of facilitation and observation to allocate resources according to needs and opportunities, as Interviewee D highlighted:

As we’re a small company, there’s no bureaucracy for resource allocation, especially in the case of a new opportunity, regardless of the area. [Interviewee D]

It is evident from his speech that they can adapt and carry out resource allocation dynamically and without significant bureaucracy. Regarding leadership and mindset, however, the interviewee pointed out difficulties with feedback and accepting different opinions, especially due to differences between company leaders. The interviewee clarifies this difference in the following excerpt:

There’s a difference between the two of us. I accept any type of challenge, but he doesn’t. He’s more assertive and has non-negotiable convictions. [Interviewee D]

In this last response, the interviewee seemed frustrated and presented a proposal for a recent event that the company rejected because they disagreed with clauses that the interviewee said were “simple and easy to accommodate with a small adjustment.” However, his partner did not accept the proposal.

Clearly, the feedback process is not structured in a way that encourages people in the company to express their opinions and suggestions, which could be valuable information. Given this negative response, the application of the TCAM ends. If the company does not have leadership that listens and is open to feedback, it cannot see changes and new opportunities. This contrasts with D’Aveni and Gunther’s (2007) logic of hypercompetition, which describes “waves” of competitive advantage and has a strong influence on transient competitive advantage.

Similarly, innovation proficiency does not occur because it depends on observing these new opportunities. Healthy disengagement is also not sustainable because one is unaware of what is or is not generating returns for the company in a systematic way.

Therefore, it is concluded that Company D’s business scenario is a “flexible but inattentive environment,” which implies that it continuously reconfigures and flexibly allocates its resources but wastes crucial time by letting opportunities pass by, thereby compromising its ability to transition from one competitive advantage to another.

It is suggested that the company expand the groups involved in the strategy process, work with internal networks of relationships, combine different skills within teams, empower groups to collect evidence, and use experts to identify early warnings.

Table 5 summarizes the application of the TCAM to the companies studied.

Table 5
Result of the Application of the TCAM in Companies A, B, and C

In summary, companies that identified a business scenario of a “flexible, but inattentive environment” have limitations regarding healthy disengagement, as indicated by the negative answer to Q5. Although flexibility and change are viewed as natural within the organization, failing to intentionally carry out the healthy disengagement process causes the company to miss the opportunity to advance strategically before the source of competitive advantage is exhausted. Therefore, managers are recommended to assemble a team dedicated to regularly evaluating the company’s portfolio, frequently rotating the management team, and conducting regular assessments to decide what to maintain or remove from the business portfolio.

Company D, whose business scenario was a “consistent and systematic but reactive environment,” obtained this result because, although it achieves continuous reconfiguration and flexibly allocates its resources, it wastes crucial time and lets opportunities pass by, compromising its ability to transition from one competitive advantage to another due to the negative response to Q3. In this case, the following is suggested: expanding the groups involved in the strategy process, working with internal networks of relationships, combining different skills within the team, empowering a group to collect evidence, and using experts to identify early warning signs.

Table 6 was created to facilitate comparison with other studies.

Table 6
Related Studies

The differences observed between the present study and research conducted in other contexts can be partially explained by the distinct characteristics of the competitive environments analyzed. Paraíba’s economic structure is predominantly service-based, accounting for over 80% of the state’s GDP. This sector encompasses commerce, public administration, real estate activities, and other tertiary segments (Instituto Brasileiro de Geografia e Estatística, 2024).

Regarding recent growth, Banco do Brasil estimates that Paraíba’s GDP grew by 6.6% in 2024, the highest rate in Brazil. The service sector expanded by 6.5%, while the industrial sector grew by 6%, and agriculture and livestock advanced by 3.2% (Secretaria de Estado da Fazenda da Paraíba, 2025a, S2025b). However, the state exhibits lower participation in technology- and innovation-intensive activities and limited international integration compared to contexts such as the state of Rio de Janeiro or economies like Kazakhstan.

Although Paraíba and Rio Grande do Norte share regional characteristics, Rio Grande do Norte has a production structure with greater natural resource diversity. Industry contributed the most to its growth in 2024, with an estimated increase of 16.1%. Sectors such as construction, wind energy generation, and oil and gas primarily drove this performance. Overall, the state’s GDP grew by 6.1% in 2024 (Assessoria de Comunicação Social do Governo do Estado do Rio Grande do Norte, 2025).

Rio de Janeiro has the most complex economic structure within the Brazilian group. The service sector accounts for approximately 85% of the city’s economy, making it essentially dependent on that sector. At the state level, Rio de Janeiro’s extractive industry ended 2024 with a growth rate of 7.0%. This growth was driven by sustained high levels of oil and natural gas production. These resources account for 75% of the state’s industrial GDP (Federação das Indústrias do Estado do Rio de Janeiro, 2025a). The state’s GDP grew by 3.9% in 2024, reaching R$ 1.3 trillion in current terms, thus cementing Rio de Janeiro’s position as Brazil’s second-largest economy (Federação das Indústrias do Estado do Rio de Janeiro, 2025b). The economy grew by 3.6% in 2024, which aligns with Brazil’s GDP growth rate of 3.4% (Secretaria Municipal de Desenvolvimento Econômico do Rio de Janeiro, 2025). Rio de Janeiro is also home to the most robust innovation ecosystem in the group. It features institutions such as UFRJ, PUC-Rio, Fiocruz, and CENPES (Petrobras), as well as technology hubs and startups. FIRJAN maintains certification and technical training programs, and the state is integrated into audiovisual, ICT, and biotechnology value chains.

On the other hand, Kenya, Pakistan, and Kazakhstan have economic structures that differ from those observed in Brazil. Kenya has the third-largest financial system in sub-Saharan Africa and has seen significant growth in financial technology and digital services. However, its economy is still heavily dependent on agriculture, which accounted for 21.3% of its GDP in 2022 (FocusEconomics, 2025a). Poverty was projected to affect 41.9% of the population by 2026 based on the US$3/day threshold (World Bank, 2025a). Nominal GDP per capita was US$2,293 in 2023 (FocusEconomics, 2025a), well below the global average of US$10,589. In 2024, 90% of the 782,300 new jobs created in Kenya were in the informal sector, up from 84% in 2014 (World Bank, 2025b).

Pakistan has a large agro-industrial economy that faces significant structural constraints. Services accounted for 50.6% of the country’s GDP and agriculture accounted for 23.4% in 2022 (FocusEconomics, 2025c). Nominal GDP per capita was US$1,581 in 2024 (FocusEconomics, 2025c), and the poverty rate based on the national poverty line was 22.5% in 2025 (World Bank, 2025d).

Finally, Kazakhstan – the largest economy in Central Asia – is heavily dependent on hydrocarbons. In 2024, nominal GDP reached US$286 billion, and in 2023, mineral fuels accounted for 58.9% of total merchandise exports (FocusEconomics, 2025b). The services sector accounts for 54% of GDP, industry for 34%, construction for 7%, and agriculture for 5% (Trading Economics, 2025). Therefore, among the group under analysis, Kazakhstan is the only one with a GDP per capita above the global average: US$14,349 in 2024 compared to the global average of US$10,589. The World Bank (2025c) classifies Kazakhstan as an upper-middle-income country.

In summary, environments characterized by varying levels of competitive competence, market dynamism, and the availability of strategic resources tend to give rise to specific forms of competitive advantage creation, exploitation, and innovation, from the perspective of transient competitive advantages. Thus, the structural and economic differences across the contexts studied offer a plausible explanation for the variations observed.

When comparing the results of the present study with those of Salgado et al. (2022) and Fernandes et al. (2023) – the only other two studies to apply the TCAM – the two main contributions obtained here are evident. First, another Brazilian state was considered, following the suggestion for future studies in both aforementioned papers. Second, the scenarios obtained in this research are unprecedented, which is crucial for an expanding model.

In the paper by Salgado et al. (2022), three different scenarios were found for the four companies analyzed, namely: (i) an unfavorable environment; (ii) a conducive but unexploited environment; and (iii) a consistent but unsystematic and reactive environment. Therefore, in the present study, at most, three questions in the model received a positive response. A similar situation was obtained by Fernandes et al. (2023), whose three analyzed companies were consistent but unsystematic and reactive, i.e., they also obtained only three positive responses in the model.

Thus, considering the predominant scenario of the companies analyzed in this study – a consistent and systematic but reactive environment – there is a decisive contribution to the expansion of the model. Four positive responses were obtained, which is still unprecedented. Furthermore, an unprecedented scenario was obtained for Company D: a flexible but inattentive environment. Therefore, applying the TCAM in another Brazilian state proved opportune given the differences found. This corroborates the problem highlighted in this research: a gap in understanding the limited business scenarios of Brazilian technology companies in the context of transient competitive advantages in different Brazilian states. This is significant given the states’ economic, social, cultural, and institutional heterogeneity. These differences can influence the analyses obtained with the TCAM, as was the case here. Thus, in addition to expanding the empirical representativeness of the literature, this study evaluated the robustness, generalizability, and contextual sensitivity of the previously reported findings.

Additionally, this study contributes to expanding the TCAM, as it is only the third study to use this framework. Once again, it proved to be easy to understand and execute, as Fernandes et al. (2023) previously noted.

5 Conclusion

McGrath’s (2013) idea of transient competitive advantage is practical and easy to understand. It presents company managers with a kind of manual for quickly and accurately identifying opportunities for new competitive advantages. This study analyzes the business scenario of technology companies in the state of Paraíba, Brazil, within the scope of transient competitive advantages. In short, the aim was successfully achieved as the model was applied in its entirety.

Regarding the results, the scenario identified in three of the companies analyzed was a “consistent and systematic but reactive environment.” Companies are thus inserted in dynamic environments supported by processes of continuous reconfiguration, resource allocation, leadership and mindset, and innovation proficiency. However, healthy disengagement does not happen intentionally; that is, abandoning activities is not a systematized process. In this sense, the environment is reactive because it involves the exchange of one advantage for another, which does not usually occur in the companies analyzed and prevents new advantages from emerging. Therefore, the first step to carry out healthy disengagement is anticipating warning signs of decline and defining a system to identify new advantages before the current one is completely exhausted.

The last company analyzed was found to be in a “flexible but inattentive environment.” The company achieves continuous reconfiguration and allocates its resources flexibly. However, it wastes crucial time, letting opportunities pass by and compromising its ability to transition to new advantages. It is therefore suggested that the groups involved in the strategy process expand to include internal networks of relationships.

Therefore, these are unprecedented scenarios within the scope of the TCAM. This reinforces the study’s contribution to expanding the model and shows that applying it in different situations is appropriate.

The information provided in this study can help managers make more assertive and consistent decisions about their companies by applying the model. As a practical contribution, it is suggested that managers of the first three companies analyzed assemble a team dedicated to regularly evaluating the company’s portfolio, frequently rotating the management team, and conducting regular assessments to decide what to maintain or remove from the business portfolio. For Company D, it is recommended that they expand the groups involved in the strategy process, work with internal networks, combine different skills within the team, empower a group to collect evidence, and use experts to identify early warning signs.

In other scenarios, it is suggested that, in cases of continuous reconfiguration failures, they should incorporate change into normal routines, educate staff, develop their skills, and implement rapid, flexible budgeting. Failures in resource allocation can be resolved by proactively removing assets that no longer provide a competitive advantage, reconfiguring the organization around opportunities, and transitioning from asset ownership to access. Finally, in cases of failure related to the structured innovation process, it is recommended that an innovation governance process be developed and support structures for innovation be created.

In this sense, the model shows how the company behaves in dynamic environments. That is, if the organization has flaws, the model can identify the problem and verify its strengths. The model can also help manage waves of competitive advantages more effectively.

The main limitation of the study was the small number of companies examined, which makes it difficult to draw more inferences and contributions. Additionally, the study was restricted to a single sector. Furthermore, it was limited in its ability to explore the possible influence of company and interviewee profiles on the results. Further studies should be carried out to replicate the TCAM in companies from other countries to make more comparisons between results and to apply the model to companies in other sectors that also demand rapid change.

Additionally, to verify the model’s applicability, it is important to apply it in different contexts, such as in well-established companies in sectors related to music, fashion, high technology, travel, communications, and electronics. These sectors constitute high-speed markets.

SUPPLEMENTARY MATERIAL

Supplementary material accompanies this paper.

Supplementary Data 1

Supplementary Data 2

Supplementary Data 3

  • Reviewers:
    Pablo de Paula; Gilnei Moura; Marina Amado Bahia Gama
  • Evaluation process:
    Double Blind Review
  • How to cite:
    Salgado, C. C. R., Aires, R. F. F., Nacre, G. S., & Lopes, V. R. I. (2026). How to compete in the context of transience? An analysis based on the transient competitive advantage model.Revista Brasileira de Gestão de Negócios,28(4), e20250245. https://doi.org/10.7819/rbgn.v28i4.4353
  • This article is open data
  • Financial support:
    The authors declare that no financial support was received.
  • Research data availability statement - Open science:
    The full data supporting the findings of this study have been made available at: Salgado, Camila Cristina Rodrigues; Aires, Renan Felinto de Farias; Nacre, Girliany da Silva; Lopes, Vanessa Inocencio Rangel, 2026, "How to Compete in the Context of Transience? An Analysis Based on the Transient Competitive Advantage Model," https://doi.org/10.7910/DVN/WYINSV, Harvard Dataverse, V1
  • Plagiarism analysis:
    RBGN performs plagiarism analyses on all its articles at the time of submission and after approval using the iThenticate tool.
  • Disclaimer on the Use of Artificial Intelligence:
    The authors declare that artificial intelligence (AI) platforms were not used in any stage of this research. All analyses, interpretations, and writing were performed manually by the authors without the assistance of AI-based tools.

References

  • Responsible editor:
    Prof. Dr. Eduardo Armando

Data availability

The full data supporting the findings of this study have been made available at: Salgado, Camila Cristina Rodrigues; Aires, Renan Felinto de Farias; Nacre, Girliany da Silva; Lopes, Vanessa Inocencio Rangel, 2026, "How to Compete in the Context of Transience? An Analysis Based on the Transient Competitive Advantage Model," https://doi.org/10.7910/DVN/WYINSV, Harvard Dataverse, V1

Publication Dates

  • Publication in this collection
    31 Aug 2026
  • Date of issue
    2026

History

  • Received
    11 Nov 2025
  • Accepted
    13 July 2026
location_on
Fundação Escola de Comércio Álvares Penteado Fundação Escola de Comércio Álvares Penteado, Av. da Liberdade, 532, 01.502-001 , São Paulo, SP, Brasil , (+55 11) 3272-2340 , (+55 11) 3272-2302, (+55 11) 3272-2302 - São Paulo - SP - Brazil
E-mail: rbgn@fecap.br
rss_feed Stay informed of issues for this journal through your RSS reader
Go to top Report error