Resource Based View (RBV)

Approach to Competitive Advantage

Internal resources are more important

than external factors

Ch 4-1
Resource Based View

 A company is positioned to succeed if it has a

competitively valuable complement of
resources at its command

Ch 4-2
Resource Based View

 Resources : are inputs into the production

process( capital, equipment , skills of
employees, patents and brands

 Capabilities: Capacity for a team of resources

to perform some task or activity. They
constitute the main source of competitive
advantage

Ch 4-3
Resource Based View (RBV)

Three All-Encompassing Categories

1. Physical resources
2. Human resources
3. Organizational resources

Ch 4-4
RBV

 Physical Resources: Plant and equipment,

location, raw materials, machines
 Human Resources: Employees, training,
experience, intelligence, skills and
capabilities
 Organizational Resources : Firm structure,
planning processes, information systems,
patents, copyrights, databases

Ch 4-5
Resource Based View (RBV)

Empirical Indicators

 Rare
 Hard to imitate
 Not easily substitutable

Ch 4-6