Hoofdstuk 3 Internal

Question 1

Resource-based view

Answer 1

Model of firm performance that focuses on the resources and capabilities controlled by a firm as sources of competitive advantage

Question 2

Resources

Answer 2

The tangible and intangible assets that a firm controls that it can use to conceive and implement its strategies
Financial resources (money), physical resources (technology, plant), Human Resources (training, experience, relationships of managers and workers) and organizational resources (formal reporting structure, planning, culture, reputation, informatie relations)

Question 3

Capabilities

Answer 3

A subset of a firm’s resources and are defined as the tangible and intangible assets that enable a firm to take full advantage of the other resources it controls

Question 4

Assumptions RBV

Answer 4

Firm resource heterogeneity (different firms may possess different resources and capabilities) and resource immobility (long lasting)

Question 5

VRIO Framework

Answer 5

Value, rarity, imitability, organization

determine the competitive potential of a resource or capability

Question 6

Value (VRIO)

Answer 6

Does a resource enable a firm to exploit an environmental opportunity and/or neutralize an environmental threat?
Higher revenue or lower cost
Look at value chain; the set of business activities in which a firm engages to develop, produce, and market its products or services.

Question 7

Rarity (VRIO)

Answer 7

Is a resource currently controlled by only a small number of competing firms?
Firms that possess should be less than firms needed to generate perfect competition dynamics

Question 8

Imitability (VRIO)

Answer 8

Do firms without a resource face a cost disadvantage in obtaining or developing it?
Sources of costly imitation: unique historical conditions (first-mover and path dependence), causal ambiguity (what enables the advantage is unknown), social complexity (interpersonal relationships, trust, culture) and patents

Question 9

Organization (VRIO)

Answer 9

Are a firm’s other policies and procedures organized to support the exploitation of its valuable, rare, and costly-to-imitate source?
Formal reporting structure (whom reports to whom), formal management controls (budgeting, reporting), information management controls (culture) and compensation policies

Question 10

Gevolgen

Answer 10

Not valuable? Competitive disadvantage
Not rare? Competitive parity
Not costly to imitate? Temporary competitive advantage
Exploited? sustained competitive advantage1

Question 11

Other firms in an industry can respond to the advantages of a competitor in one of three ways

Answer 11

• Limit their response cause of own competitive advantage, because it does not have the resources to do so, or because it is trying to reduce the level of rivalry in an industry (tacit cooperation)
• Alter some of their business tactics (specific actions)
• Alter their strategy

Question 12

Broader implications of RBV

Answer 12

• Competitive advantage is every employee’s responsibility
• Imitation can only lead to competitive parity
• As long as the cost of strategy implementation is less than the value of strategy implementation, the relative costs of implementing a strategy is more important for competitive advantage than the absolute cost of implementing a strategy
• Employee empowerment, organizational culture and teamwork can be a source of sustained competitive advantage
• Organization should support the use of valuable, rare, and costly-to-imitate resources