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Resource-Based View Definitions and Typologies Daniel Degravel, 2007.

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1 Resource-Based View Definitions and Typologies Daniel Degravel, 2007

2 R. B. V. Definitions Wernerfelt, B., 1984, Hafeez, K., Malak, N. and Zhang, Y., 2002 Resource = anything that could be thought as a strength or a weakness for a firm. Tangible and intangible assets tied permanently or semi-permanently to the firm - an input into the production process - the basic unit for analysis - anything tangible or intangible that can be owned or acquired Daft, 1983, Barney, J., 1991 Resource = assets, capabilities, organizational processes, firm attributes, information, knowledge, controlled by a firm that enable it to conceive of and to implement strategies that improve its efficiency and effectiveness Strengths that a firm can use to conceive of and implement its strategies Resources

3 R. B. V. Definitions Barney, J., 1991 1- Physical capital Technology, plant, equipment, location, access to raw material 2- Human capital Training, expertise, judgment, intelligence, relationships and insights of managers and workers 3- Organizational capital Organizational structure, planning, controlling and coordinating systems, informal relations among groups within the firm and with outside groups Typology of Resources #1 Hofer and Schendel, 1978, Grant, R., 1991 Mahoney, J. and Pandian, R., 1992 1- Physical resources 2- Financial resources 3- Human Resources 4- Organizational resources 5- Technological resources 6- Legal resources 7- Experience 8- Intangible resources Typology of Resources #2

4 R. B. V. Definitions Typology of Resources #3 Hafeez, K., Malak, N. and Zhang, Y., 2002 1- Physical assets 2- Intellectual assets 3- Cultural assets

5 R. B. V. Definitions Hrebiniak, L. and Snow, C., 1980 Competence = aggregate of numerous specific activities that the organization tends to perform better than other Organizations in a similar environment Selznick, 1957 Competence = things that an Organization does especially well in comparison to its competitors Hamel, G. and Prahalad, C., 1990 Competence = collective learning of the Organization, especially how to coordinate diverse production skills and to integrate multiple streams of technology Competences Penrose, 1959 Resource = stock. A resource can be defined independently from its use Capability (competence) = flow. It implies function and activity and cannot be defined independently from its use. Capabilities are created over time and may depend on History and use of resources in an extremely complex (“path-dependent”) process

6 R. B. V. Definitions Galbreath, J., 2005 Typology of Competences #1 Assets H A S Skills D O E S TangibleIntangible Financial assets Physical assets Property rights Organization Reputation The skills of the Organization or its capabilities

7 R. B. V. Definitions Durand, T. 1996 1- Elementary assets and resources, tangible and intangible Plant, equipment, products, software and brands 2- Cognitive competences, individual and collective, explicit and tacit Knowledge, know-how, technologies, patents 3- Organizational processes and routines (coordinated deployment of resources) Coordination mechanisms in the organization to combine the action of individuals into collective tasks and achievements 4- Organizational structure Structure including its internal and external dimensions (links with suppliers and customers) 5- Identity (Culture) Corporate culture and behavior in the organization. Its shared values, its rites and taboos are manifestations of the firm’s identity Typology of Competences #2

8 R. B. V. Definitions Sanchez, R., Heene, A. and Thomas, H., 1996 Typology of Competences #3 Strategy C o m p e t e n c e s Operations Resources Coordinated deployment Assets Intangible Tangible Knowledge Know-how Explicit/tacit; individual/collective Techniques Brands Software Products Equipments Buildings Process of management Organization and process for a coordinated deployment of assets Strategic Intent and Goals

9 R. B. V. Definitions The Tree Hamel, G. and Prahalad, C., 1990 Core Competences Maximum around 6 Final Products Core Products Typology of Competences #4

10 R. B. V. Definitions Hall, R., 1992 Typology of Competences #5 Linked to members of Organization (“Behavioral”) Functional Know-how of employees, suppliers and distributors Not Linked to members of Organization (Asset- oriented) Cultural“Positional”Legal Perception of quality and aptitude to learn Reputation Networks Data-baseContracts Licenses Business secrets Intellectual property rights

11 R. B. V. Definitions Bajeva, A., Jamil, M. and Mascarenhas, B., 1998 Typology of Competences #6 1- Technological excellence 2- Process excellence 3- Relational excellence Quelin, B and Arregle, J., 1999 Typology of Competences #7 1- Organizational competences Coordination process; Behavior and Managers’ involvement; Motivation management; and Performance management 2- Inter-Functional competences New product management; Customer support and Quality management 3- Functional competences R&D; Production; Marketing; Finance; and HRM… 4- Specialized competences Knowledge and specialized know-how of individual members

12 R. B. V. Definitions BHrebiniak, L, and Snow, C., 1980 Typology of Competences #8 1- General management 2- Financial management 3- Marketing Selling 4- Marketing Research 5- R&D 6- Engineering 7- Production 8- Distribution 9- Legal affairs 10- Personnel Typology by Function

13 R. B. V. Definitions Attributes and dimensions of Competences 1- Level of analysis (Corporate; Division; Business; or Individual) 2- Logics of typology: Performance-oriented; “Filtered”; Orientation 3- Level of detail/complexity 4- Principle of contingency (/industry; /size; /time; /?) 5- Inter-competences links 6- Degree of conscience or understanding 7- Degree of control 8- Potential or real effect of competence on the firm 9- Degree of mastering (competence) 5- Access (top-level managers; confidentiality) 6- Operationalization of VRIS criteria

14 R. B. V. Definitions Report Detection of competences and Resources of an Organization: 1- Build a typology of their competences 2- Understand the link between Resources/Competencies and Performance 3- Identify the features of the firm’s competence management system Methodology: interview of top-managers are required because you have to enter into the “black box” (complexity and contingence) What is the degree of conscience of their own competences? To what extent does the firm explicitly or implicitly manage its own competences? Would the firm be willing to go further in that analysis?


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