There is no common definition of strategy or the way how to implement it. However, it is common understanding that the purpose of each business is to maximise profit and that this is reached through a competitive advantage a firm might have over its rivals. Therefore, strategy should describe a mean to manage and direct a business in its environment towards a favourable market position which offers a competitive advantage (e.g. Rumelt, 1996; Porter, 1996).
In this sense, “a firm is said to have a sustained competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy.” (Barney, 1991: 102) However, there are different approaches regarding what strategies need to be based upon to achieve that competitive advantage, i.e. what are the sources for a favourable market position and a competitive advantage.
This paper then goes on explaining the resource-based view before listing its criticisms and concluding with an outlook into the future of strategic planning.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- The Resource-based View
- Criticisms of the Resource-based View
- Conclusions
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper critically reviews the development of the resource-based view (RBV) and its impact on our understanding of strategy. It examines how the RBV has contributed to the field of strategic management and how it has challenged traditional perspectives on competitive advantage.
- The role of resources and capabilities in achieving competitive advantage
- The distinction between the resource-based view and the positioning-based view (PBV)
- The importance of heterogeneity and immobility of resources
- The concept of isolating mechanisms and their role in sustaining competitive advantage
- The impact of a firm's unique history and path dependence on its strategic capabilities
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the concept of strategy and its role in achieving competitive advantage. It highlights the importance of understanding the sources of competitive advantage and the different approaches to achieving it.
- The Resource-based View: This chapter presents the resource-based view (RBV) as a framework for understanding competitive advantage. It emphasizes the importance of firm resources and capabilities in achieving and sustaining a competitive advantage. The chapter also contrasts the RBV with the traditional positioning-based view (PBV).
- Criticisms of the Resource-based View: This chapter explores various criticisms of the RBV, including concerns about its assumptions, its inability to explain all aspects of competitive advantage, and the difficulty in measuring and managing resources and capabilities.
Schlüsselwörter (Keywords)
The key terms and concepts explored in this work include the resource-based view (RBV), competitive advantage, strategic resources, capabilities, heterogeneity, immobility, isolating mechanisms, path dependence, and positioning-based view (PBV).
- Quote paper
- Katja Kirsch (Author), 2004, Critically review how the resource-based view has developed our understanding of strategy., Munich, GRIN Verlag, https://www.grin.com/document/36615
