Although scholars debate the precise categories of competitive positions that are used, there is general agreement, within the literature, that the resource-based view is much more flexible than Porter's prescriptive approach to strategy formulation.
Thus notwithstanding major advances in the field of strategy, practitioners are left with a dilemma: Definition The resource-based view RBV is a model that sees resources as key to superior firm performance.
Tangible Resources and Capabilities Examples Financial —Ability to generate internal funds —Ability to raise external capital Physical —Location of plants, machines, offices, and their geographic locations —Access to raw materials and distribution channels Technological —Possession of patents, trademarks, copyrights, and trade secrets Organizational —Formal planning, command, and control Systems —Integrated management information systems Intangible resources and capabilities Examples Human —Managerial talents?
These include reengineeringenterprise systems, benchmarkingdownsizing, and other similar approaches of efficiency. Resources provide value if it helps firms in exploiting market opportunities or helps in reducing market threats.
Major proponents were Wernerfelt, B. Examples of resources are brand names, technological abilities, efficient procedures, among others Wernerfelt, ; Olavarrieta and Ellinger, ; Spanos and Lioukas, If organizations would have the same amount and mix of resources, they could not employ different strategies to outcompete each other.
In addition, management must invest in organisational learning to develop, nurture and maintain key resources and competencies. International business Peng asserts that the established research areas of multinational corporations MNCs and market entries can be considered to have been enriched by the RBV while three newer areas strategic alliances, international entrepreneurship, and emerging market strat- egies have been propelled by the RBV.
One explanation may be that the strength of some resources are dependent upon interactions or combinations with other resources and therefore no single resource—intangible or otherwise— becomes the most important to firm performance Academy of Management Best conference Paper BPS: Identification of Resources and Capabilities Yes.
Resources must be difficult to find among the existing and potential competitors of the firm. Imperfect imitability means making copy or imitate the resources will not be feasible. Intangible resources, such as brand equity, processes, knowledge or intellectual property are usually immobile.
Therefore, superior rents are likely to be derived from the ability to destroy and rebuild specialized, inimitable resources or routines over time.
These observations are consistent with a growing literature on knowledge and competitive advantage e. According to RBV proponents, it is much more feasible to exploit external opportunities using existing resources in a new way rather than trying to acquire new skills for each different opportunity.
Abstract Jay BarneyBirger Wernerfelt Economic theory holds that in the normal course, and in the absence of market imperfections, abnormal economic rents will get competed away by rivals or new entrants to an industry.The resource-based view (RBV) argues that firms possess resources, a subset of which enable them to achieve competitive advantage, and a subset of those that lead to superior long-term performance.
Resources that are valuable and rare can lead to the creation of competitive advantage. At present, the resource-based view of the firm is perhaps the most influential framework for understanding strategic management.
In this editor's introduction, we briefly describe the contribu. A resource‐based view of the firm. Birger Wernerfelt.
Graduate School of Business Administration, The University of Michigan, Ann Arbor, Michigan, U.S.A. Search for more papers by.
The Resource Based View holds that firms can earn sustainable supra-normal returns if and only if they have superior resources and those resources are protected by some form of isolating mechanism preventing their diffusion throughout industry.
The resource-based view of the firm identifies an organization as a combina- tion of both tangible and intangible resources and capabilities that help to gain competitive advantage (Barney, ;Grant, ; Wernerfelt, ).
the resource based view of the firm certainly signified the first coherent statement of the theory. This initial statement of the theory served as the foundation that was extended by others such as Rumelt (), Barney (), and Dierickx and Cool ().Download