BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
model that takes in consideration resources and capabilities
|
|
|
model that takes in consideration all factors
|
|
|
a model that sees certain resources as a key aspect
|
|
|
models that see all capabilities as a key aspect
|
Detailed explanation-1: -The resource-based view (RBV) is a managerial framework used to determine the strategic resources a firm can exploit to achieve sustainable competitive advantage. Barney’s 1991 article “Firm Resources and Sustained Competitive Advantage” is widely cited as a pivotal work in the emergence of the resource-based view.
Detailed explanation-2: -What the Resource-Based View of the Firm? The Resource-Based View (RBV) is a group of theories proposing that companies are able to establish competitive advantage through internal resources of the firm that are valuable, rare, not imitable, and organized for value capture.
Detailed explanation-3: -According to the resource-based view, in order to develop a competitive advantage the firm must have resources and capabilities that are superior to those of its competitors. Without this superiority, the competitors simply could replicate what the firm was doing and any advantage quickly would disappear.
Detailed explanation-4: -RBV model considers resources to be the key to superior firm performance. Competitive advantage is gained by the firm if a resource exhibits VRIO attributes. For each new opportunity, instead of adopting new skills every time, firm could focus on exploiting external opportunities using existing resources in a new way.
Detailed explanation-5: -Resource-based theory suggests that resources that are valuable, rare, difficult to imitate, and nonsubstitutable best position a firm for long-term success. These strategic resources can provide the foundation to develop firm capabilities that can lead to superior performance over time.