Strategic factor markets: a critical review, insights and future directions

Purpose This study aims to synthesize the fragmented strategic factor markets (SFM) literature and propose a coherent conceptual framework highlighting key theoretical extensions and practical implications. It identifies conceptual tensions, underexplored intersections, and emerging challenges related to capabilities, resource valuation and pricing, and managerial cognition within SFMs, emphasizing the growing impact of artificial intelligence (AI). Design/methodology/approach The study adopts an integrative review methodology, synthesizing insights from 46 core papers explicitly engaging with SFM theory. These studies were systematically analyzed through a thematic framework consisting of three analytical dimensions: capabilities, valuation and pricing, and cognition. This approach enabled identification of conceptual gaps, emerging themes, and future research opportunities. Findings Capabilities within SFMs are dynamic processes evolving through continuous market interactions, rather than static internal attributes. A critical analytical distinction between valuation and pricing is essential, valuation reflects firm-specific, capability-driven judgments, while pricing captures external market dynamics. Cognitive processes, particularly when combined with AI, significantly influence resource acquisition decisions. This integration raises questions about whether AI-driven analytics might equalize or amplify competitive differentiation through enhanced managerial insight. Originality/value This paper uniquely synthesizes four decades of fragmented literature on SFMs and extends existing theory through novel conceptual distinctions, especially regarding the dynamic role of capabilities, the analytical separation of valuation from pricing, and the integration of cognitive perspectives. Additionally, by highlighting AI’s emerging but complementary role within managerial cognition, the review revitalizes SFM theory, providing insights relevant to contemporary strategic challenges in resource acquisition.