The value of actively managing the legal dimensions of business

In an exploratory effort, this paper draws on the resource-based view of the firm and the dynamic capabilities approach and postulates that "legal competence" can be a source of sustained competition advantage. It makes explicit the impact law has on strategy but does not view law as an exogenous force that mechanically determines the opportunities for value creation and risk management. This paper posits that law and the tools it offers are an enabling force managers can help shape and use to manage the firm more effectively and seeks to inaugurate a debate about the appropriate role of law in managerial practice, decision making, and education.