Resource Based View Essay
The mid-eighties witnessed the emergence of a growing body of work collectively labelled the resource and capability-based view of the firm (RBV). In reality, Resource Competence View (RCV) first adopted an “economic” orientation. Pioneer studies (Wernerfelt, 1984) , Barney, 1986, 1991, Dierickx and Cool, 1989, Peteraf, 1993) focused on the type of resources and competencies that could offer to its owner a sustainable competitive advantage. Therefore, resources and competencies approach first appeared as a theory of competitive advantage or a theory of “performance of the firm” (Argyres & Zenger, 2007).
It is only recently, in the last 20 years that organizations have started using the resource based view approach on …show more content…
Financial Resources : CAF, debt ratio, volume TR ;
Human Resources : number of employees, qualification, experience,intelligence ;
Physical resources : production sites and their geographical location, land,stocks ;
Organizational Resources : information systems, ISO standards, procedures,coordination mechanisms ;
Technological resources : know-how, patents ;
Reputational Resources : brand, reputation ;
The approach based on the resources considers that the company more than the industry, constitutes the relevant level of analysis to explain the performance (Barney, 1991; Rumelt, 1984; Wernerfelt, 1984). The organization is rehabilitated as an actor ; the firms are able to accumulate resources and competences which are transformed into advantage on the competitors if they are rare, creative of value, non-substitutable and difficult to imitate (Barney, 1991; Dierickx and Cool, 1989) see figure 1.
5 tests to assess the strategic value of competencies:
Figure 1. Barney J.B. (1991), Firm resources and sustained competitive advantage, Journal of
Management, vol. 17, pp.99-120
The firm is not designed any more like a wallet of products or markets, but like a wallet of resources. It is not the customer requirements who determines the strategy, but the resources and competencies which the company possess : the competing