Resource-Based View 1RBV and competitive advantageFocus on internal resourcesValueRarityImperfect imitabilityLack of substitutes

Chapter 4Wheelen/Hunger *Resource-Based Approach Internal strategic factors: Scanning and analyzing the external environment for O and T is not enough to provide an organization a competitive advantage. Analysts must also look within the corporation it self to identify internal strategic factors Critical strengths and weaknesses that are likely to determine if the firm will be able to take advantage of opportunities while avoiding threats.

Chapter 4Wheelen/Hunger

Chapter 4Wheelen/Hunger *Resource-Based Approach Resource:

An asset, competency, process, skill, or knowledge controlled by the corporation.

Chapter 4Wheelen/Hunger

Prof. Dr. Majed El-Farra Chapter 4Wheelen/Hunger *Evaluating Key Resources VRIO FrameworkHow to identify the key resources?Base on four criteria:Value: Does it provide competitive advantage?Rareness: Do other competitors possess it?Imitability: Is it costly for others to imitate?Organization: Is the firm organized to exploit the resource? If the answer is use to all it is considered distinctive competence.

Chapter 4Wheelen/Hunger

Core and distinctive competenciesCapabilities: organization ability to utilize its resources. Its business process and routine. Competency: cross-functional integration and coordination of capabilities. E.g., new product development. Core-competency: collection of competencies that crosses divisional boundaries. E.g., new product development is a core-competency if it goes beyond one division. Distinctive competencies: when core- competencies are superior to those of the competitions. Chapter 4Wheelen/Hunger *

Chapter 4Wheelen/Hunger

Resource-Based View 2RBV and strategic balanceAll workers or just senior managersHuman capital and human process advantageHistorical development of organizationTable stakes/enabling capabilities

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