While I do have some opinions on how to address this question based on my reading as a student, I would like to know the opinions of more accomplished scholars. It would be helpful if you refer to Barney (1986) when addressing this question.
Markey structure refers to the level of competition in a market and what discretion firms have to set output and prices. So, in a basic sense there are three factors of production (resources that a firm needs to produce output). Labour (people), capital, and raw materials. So if a firm needed a special resource (say some piece of technology) then the market structure of the piece of technology market would determine what price the firm can access that piece of technology.
Within the firm, the resource based view, each firm has a unique set of skills and competencies that affect its decision-making and outcomes. So the external (strategic) factor market tells you how much and at what price of the special factor a firm can get hold of and the RBV tells you about how much value the firm can make of that resource.
The market structure of the strategic factor market typically exhibits characteristics of an oligopoly or monopolistic competition, where a few dominant firms or differentiated suppliers compete for strategic resources such as specialized skills, technology, or unique inputs crucial for competitive advantage.
The market structure of the strategic factor market is primarily characterized by its focus on the acquisition and allocation of resources that are essential for competitive advantage. Unlike traditional goods markets, the strategic factor market emphasizes the unique attributes of resources that can lead to superior performance. This includes aspects such as rarity, inimitability, and non-substitutability of resources.
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