Resource-Based View Theory

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The objective of this document is to evaluate IBM’s trajectory in the IT industry, taking into consideration the concepts proposed by the theories and frameworks that analyse Innovation in Business, for example: Social capital, Knowledge based view and Dynamic Capabilities. In particular, the main purpose of this project is to understand how a large company like IBM has maintained their leadership in the market for longer than one hundred years, investing in innovation. Also, the proposal is to demonstrate the importance of innovation for large companies to reinvent their business, aiming to follow the evolution of the IT industry and as the demand for new technologies continues to grow. Furthermore, to ensure they can remain as market leaders. …show more content…
For Barney (1991) the company can accomplish sustainable advantage defining strategies that explore their strength, as long as avert the internal weakness and neutralize the threats. However, the resource – based view theory believes that the knowledge as a generic source, therefore in this case the focus will be to comprehend the Knowledge based view (KBV) theory that different than RBV theorist, the most strategic resource is the Knowledge. Organizations have Knowledge as an important asset and can use it as a potential source for gain competitive advantage. Knowledge management is relevant for the company create competitive from RBV. (Halawi, Aronson and McCarthy, 2005). The knowledge is the focus, responsible to drive the strategy, which is created based on an interactive process, conducted by people, based on their beliefs, thoughts, concepts and actions in a particular context. The most important in the competition is to maintain the innovation and for that the knowledge is essential. As per the KGB theory, the knowledge is essential for the company gain competitive advantage, whereas will be through the knowledge, also skill that the company will produce innovative products or services and improve the process already existent. (Nonaka & Takeuchi, 1995). However, knowledge is not measured, which difficult to evaluate of the effectiveness in invest in knowledge as resource. For Stehr (1992), knowledge it is not clearly observed and it cannot be dimensioned, therefore, the company can just infer it through their capabilities, which is a measurable

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