Strategic factor market theory examines competition for key resources and their impacts on performance in subsequent product markets. While this theory has undergone substantial expansion over the years, scrutiny of factor sellers in subsequent product markets has yet to receive the attention it merits. The knowledge-based view holds that hierarchical control over resources affords firms with unique knowledge of the resource derived from their exclusive access. While this knowledge can enhance the resource's contribution to firm performance while under its control, it may also persistently affect the performance of the originating firm following the resource's divestment. This paper tests the ability of “residual knowledge” to provide an advantage to a given firm in subsequent competitive scenarios in the empirical setting of Major League Baseball over 37 seasons. This data-rich setting enables the tracking of players, operationalized as strategic resources, as they compete against the broad field of competitors along with their former employing organizations. Interestingly, while no main effects are found, there is some support for the ability of residual knowledge to render an advantage prior to the proliferation of big data analytics ostensibly providing superior competitive intelligence to what might be derived from residual knowledge. Thus, this study may contribute to the literatures of strategic factor markets, the knowledge-based view, as well as big data and its use as a source of competitive advantage.
