Resource-Based View

Resource-based view 1 The 'resource-based view' ('RBV') as a basis for the competitive advantage of a firm lies primarily in the application of a bundle of valuable tangible or intangible resources at the firm's disposal (Mwailu Mercer, 1983 p142, Wernerfelt, 1984, p172; Rumelt, 1984, p ; Penrose, 1959Penrose, E

Resource-based view - Key Points 1 The VRIN characteristics mentioned are individually necessary, but not sufficient conditions for a sustained competitive advantage (Dierickx and Cool, 1989, p1506; Priem and Butler, 2001a, p25). Within the framework of the resource-based view, the chain is as strong as its weakest link and therefore requires the resource to display each of the four characteristics to be a possible source of a sustainable competitive advantage (: ).

Resource-based view - Definitions 1 This distinction has been widely adopted throughout the resource-based view literature (Conner and Prahalad, 1996, p477; Makadok, 2001, p338; Barney, Wright and Ketchen, 2001, p630-31).

Resource-based view - What constitutes a capability? 1 (2001), Toward a Synthesis of the Resource-Based View and Dynamic-Capability Views of Rent Creation

Resource-based view - What constitutes competitive advantage? 1 The main difference between the resource-based view of the firm and dynamic capabilities view is the fact that the latter focuses more on the issue of competitive survival rather than achievement of sustainable competitive advantage

Resource-based view - History of the resource-based view 1 Some aspects of theories are thought of long before they are formally adopted and brought together into the strict framework of an academic theory. The same could be said with regard to the resource-based view.

Resource-based view - History of the resource-based view 1 While this influential body of research within the field of Strategic Management was named by Birger Wernerfelt in his article A Resource-Based View of the Firm (1984), the origins of the resource-based view can be traced back to earlier research

Resource-based view - History of the resource-based view 1 Barney’s framework proved a solid foundation upon which others might build, and its theoretical underpinnings were strengthened by Conner (1991), Mahoney and Pandian (1992), Conner and Prahalad (1996) and Makadok (2001), who positioned the resource-based view with regard to various other research fields. More practical approaches were provided for by Amit and Shoemaker (1993), while later criticism came from among others from Priem and Butler (2001a, 2001b) and Hoopes, Madsen and Walker (2003).

Resource-based view - History of the resource-based view 1 A resource-based view of a firm explains its ability to deliver sustainable competitive advantage when resources are managed such that their outcomes cannot be imitated by competitors, which ultimately creates a competitive barrier (Mahoney and Pandian 1992 cited by Hooley and Greenley 2005, p.96, Smith and Rupp 2002, p.48)

Resource-based view - Criticism/Limitations 1 * The concept of rarity is obsolete: Although prominently present in Wernerfelt’s original articulation of the resource-based view (1984) and Barney’s subsequent framework (1991), the concept that resources need to be rare to be able to function as a possible source of a sustained competitive advantage is unnecessary (Hoopes, Madsen and Walker, 2003, p890)

Resource-based view - Criticism/Limitations 1 The relational view is an extension of the resource-based view for considering networks and dyads of firms as the unit of analysis to explain relational rents, i.e., superior individual firm performance generated within that network/dyad.Dyer, J.H., Singh, H. (1998): The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, Vol. 23, pp. 660–679.

Resource-based view - Further reading 1 * Hoopes, D.G.; Madsen, T.L.,; Walker, G. (2003) Guest Editors’ Introduction to the Special Issue: Why is There a Resource- Based View? Toward a Theory of Competitive Heterogeneity. Strategic Management Journal; 24, pp.889–902.

Resource-based view - Further reading 1 * Peteraf, M. A. (1993), The cornerstones of competitive advantage: a resource- based view. Strategic Management Journal, Vol. 14, No. 3, pp.179–191

Resource-based view - Further reading 1 * Wernerfelt, B. (1984), A resource-based view of the firm. Strategic Management Journal, Vol.5, pp.171–180

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