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Resources and Capabilities, PDF
Resources and Capabilities, PDF
4–2
EXHIBIT 4.2 Linking Resources and Capabilities to Firm Performance
The resource-based view of the firm
Competitive advantage
Industry’s critical
Strategy FIT success factors
Capabilities
Competencies
Organizational routines
Norms and directives
Resources
Tangible: Intangible: Human:
• financial • technology • competences and
• physical • reputation specialized knowledge
• culture • interaction and
communication abilities
• motivation
Fernando Alberti, PhD
Defining Organizational Capabilities
• Financial $ ¥ £
• Physical
• Human
• Technological
• Reputational
First-Mover Advantages in Resource Acquisition
Patents
Brand Recognition
Reputation
Accumulated Learning
Attractive Locations
Installed Base
Key Elements of Business Strategies:
Understanding Resources, Capabilities, and Competencies is
the key
INDUSTRY
KEY
COMPETITIVE SUCCESS
ADVANTAGE STRATEGY FACTORS
ORGANIZATIONAL
CAPABILITIES
RESOURCES
Demand
Difficult to Imitate:
Brand Loyalty
Favorable cost position
Employee Satisfaction
Reputation for Fairness
Source: Collis and Montgomery, Corporate Strategy: Resources and the Scope of the Firm (1996).
Identifying a Company’s
Identifying a Company's Capabilities
Capabilities and Value Chain
Functional Area Capability Example