While strategic orientations suggested in the literature circumscribe firm behavior along many dimensions, none can adequately explain why some firms and not others choose to pursue technological arbitrage opportunities (Anokhin & Wincent, 2014). Such opportunities have to do with market inefficiency and imperfect information whereby most industries sustain firms combining similar resources with varying degrees of efficiency, and a typical firm may earn above-average returns by adopting leaders’ superior resource combinations. Building on the work of Hayek (1945), Kirzner (1979; 2009), and Anokhin and colleagues (2010, 2011, 2014), we propose that a novel strategic orientation – arbitrage orientation (AO) – explains why firms choose to pursue such opportunities and suggest that accounting for it assists in understanding competitive advantage.