3 Resource-based view

Question 1

What does the resource-based view (RBV) of strategy focus on?

Answer 1

RBV focuses on a company’s internal resources and capabilities as the primary drivers of performance and competitive advantage.

Question 1

What are the
key types of resources
according to RBV? (3)

Answer 1

• Tangible resources,
• Intangible resources,
• Organizational capabilities. (HR)

Question 2

What is a tangible resource?

Answer 2

Physical assets such as machinery, buildings, and financial capital.

Question 3

What are organizational capabilities?

Answer 3

The firm’s ability to utilize its resources effectively to achieve a desired end. (Congruence Modell)

Question 3

What is an intangible resource? (3)

Answer 3

Non-physical assets such as

• brand reputation,
• intellectual property,
• company culture.

Question 4

What are the VRI O criteria used to evaluate resources?

Answer 4

Sustainable competitive advantage
➔ Value, Rarity, Imitability, and Organization.

Question 5

What does the ‘Value’ criterion refer to in the VRIO framework?

Answer 5

A resource is valuable if it helps the firm exploit opportunities or neutralize threats.

Question 6

What does the
Rarity criterion mean
in the VRIO framework?

Answer 6

A resource is rare if it is not widely possessed by competitors.

Question 7

What is meant by ‘Imitability’ in the VRIO framework?

Answer 7

A resource is costly to imitate if firms without it cannot obtain or duplicate it easily.

Question 8

What does ‘Organization’ refer to in the VRIO framework?

Answer 8

The firm must be organized to capture value from its resources.

Question 9

How does RBV suggest firms sustain a competitive advantage?

(2) 🐥

Answer 9

• By developing and protecting resources
• that are valuable, rare, inimitable, and well-organized.

Question 10

What is a
core competency
in RBV terms? (3)

Answer 10

A unique capability, ..

• that provides competitive advantage
• is central to the firm’s operations.

Question 11

Why is resource heterogenity important in RBV? (2)

Answer 11

It implies that, ..

• different firms have different bundles of resources,
• leading to varied levels of performance.

Question 12

What is resource immobility? (2)

Answer 12

• Resources cannot easily move from one firm to another,
• making them a source of sustained competitive advantage.

Question 13

How can firms protect their valuable resources according to RBV? (4)

Answer 13

Through mechanisms such as ..

• patents,
• trademarks,
• trade secrets,
• maintaining organizational culture.

Question 14

Tangible vs Intangible Resources (3x2)

Answer 14

Question 15

Resources of the Firm

• optimal
• primary / secondary
• value

Answer 15

The optimal growth of a firm involves a balanced exploitation and development of resources

Value Chain & Firm as a Dynamic Strategic Activity System

Question 16

What must a resource pass to be a source of sustainable competitive advantage according to RBV? (5)🍋

Answer 16

It must pass the tests of, ..

appropriability,
The firm must be able to capture the value that the resource generates.

competitive superiority.
The resource must be superior (besser/ überlegen) to those of the firm’s competitors.

inimitability,
The resource must be difficult for competitors to imitate or replicate.

durability,
The resource must not depreciate quickly over time.

substitutability,
There should be no strategically equivalent substitutes for the resource.

Question 17

What does successful corporate strategy require according to RBV? (2)

Answer 17

• Leveraging a company’s valuable resources into multiple markets
• where those resources contribute to competitive advantage.

Question 18

Why should companies invest in upgrading and maintaining their valuable resources?

Answer 18

Because all resources eventually depreciate over time due to competitive forces.

Question 18

What common mistake do companies make regarding their resources in new contexts?

Answer 18

Companies often overestimate the transferability of specific capabilities to new contexts.

Question 19

How does RBV complement previous strategy frameworks? (2)

Answer 19

• It integrates with frameworks like industry analysis and positioning
• to explain sources of differences in profitability between firms within an industry.

Question 19

What does RBV provide a systematic way to do? (3)

Answer 19

To identify, develop, protect, and deploy

• a company’s unique resources and capabilities
• as the foundation for strategy and competitive advantage.