Barneys (1991) - quite good "deck" Flashcards
What’s the name of Barney’s articles?
Firm Resources and Sustained Competitive Advantage
What generate sustained competitive advantage according to Barneys?
- value (the resource has to have value). 2. Rareness (it it is homogenous in the industry it is not giving competitive advantage). 3. Imitability (if other can copy the resource, it doesn’t give competitive advantage). 4. Sustainability (if the resource can be substitute with something similar).
What are Barneys critics concerning SWOT and Porter’s Five Forces?
SWOT= Strength, weaknesses, opportunities and threads. Porter’s Five Forces: Describe the attributes to and attractive industry. Both of them are seen as to be focusing to little on idiosyncratic (how someone act, “habit of body”). Both of the models uses two simplifications: 1. Assumption that firm within an industry are identical in terms of strategically relevant resources they control, and the strategies they pursue. 2. These models assume that if resources are heterogeneity developed in an industry or group, that this heterogeneity will be shortly lived because the resources the firms use to implement their strategies are highly mobile (they can be bought and sold in factor markets).
Name three resource-categoriez and some example from each, according to the RBV (Resource based view).
Physical capital resources:
- physical technology
- plants and equipment
- geographical location
- access to raw material
Human capital resources
- Training and development
- experience
- judgement
- intelligence
- relationship
- insight of individual managers and workers in firm.
organisational capital resources
- formal reporting structure
- formal and informal planning
- controlling
- coordinating systems
- informal relations among groups withing a firm and those in its environment.
What is a resource?
a resource is attributes, information, knowledge, etc. controlled by a firm tht enable them to conceive (fatta) of and implement strategies (improving efficiency and effectivness).
Explain competitive advantage and sustained competitive advantage.
Sustained competitive advantage:
a firm is said to have sustained competetive advantage when it is implementing a value creting system NOT beeing implemented by any other actor at the time AND when the other firms are unable to duplicate the benefits of this strategy.
Who are your competing against?
Not only competing with todays actors, but invaders and competitors of tomorow as well.
For how long time are you able to have a sustain competetive advantage?
sustained competititve advantage is not a period of calender time, rather the sustained advantage can continue until copetitors can duplicate their strategy. The strategy will not be sustained forever.
The environment around us is constantly changing, having an impact on our strategy.
Explain value according to RBV
a firms resources can only be of competitive advantage if they are valuable. Valuable = enabling firms to conceive of or implement strategies that improve effectivness or efficiancy.
Explain rareness.
resources controlled by a large number of firms can y definition not give competitive advantage.
Explain imitability
If other firms can duplicate your sources of competitive advantage… well, it is not good.
Unique historical conditions:
- path dependency
- unique and valuable organisationanal culture.
casually ambiguous:
The link between outcome and resource is not completely uncerstood. difficult for others to duplicate something that is not understood. the complexity is crucial, if someone figures out how the connection looks like it becomes a duplicatable resource.
Social complex
- complex social phenomena.
- interpersonal relations among employees and managers.
- firms reputation among suppliers
- organisational culture.
NOTE that physical technology often can be duplicated, but can be connected to socially complex systems - making it imitable.
Explain sustinability
are there any other equivalent strategy that firms can posses? or similar?
charismatic leader vs planned strategy or different top manager-teams but with same capability.
Explain the model of Barney.
