Competitive Advantage Achieved

Firm are bundles of resources Heterogeneously distributed

Resource Based View

Resource differences persist over time

Rare

Inimitable

Competitive Advantage Sustained
Valuable
Sustainable Competitive Advantage

Non substitutable

• RBV has not able to explain why and how certain firms have competitive advantage in rapid and unpredictable situations • Here Dynamic Capabilities by which firms integrate, build and reconfigure internal and external competencies becomes source of sustained competitive advantage. • Dynamic capabilities are processes embedded in the firm
– Product development, alliancing and strategic decision making

• Exhibit commonalities across firms-”best practices”
– Equifinality, homogeneity and substitutability

• When markets are moderately dynamic-resemble traditional conception of routine and when markets are