RBV Flashcards
What does the V stand for in VIRN ?
Valuable, in they enable a firm to produce a good or service in an efficient and effective manner to exploit opportunities and counter threats.
What does the R stand for in VIRN ?
Rare, in that few organization possess them
What does the I stand for in VIRN ?
imitable , meaning it is difficult for competitors to copy the resource
What does the N stand for in VIRN ?
Non-substitutable, meaning that there are no strategical equivalents available to the competitors.
Give a description of durability.
Durability is the extent to which competitive advantage is long lasting. For example, technological innovation can often be seen as a method of increasing a company’s competitive advantage however it is not sustainable without other resources and capabilities such as know-how and company culture.
Give a description of opacity.
Opacity refers to resources and capabilities that cannot be imitated by competitors. This allows for the competitive advantage that is gained to be sustained, capabilities that require complex coordination between large numbers of diverse resources are the most difficult to copy
Give a description of isolating mechanisms.
Isolating mechanisms are the extent to which resources and capabilities can be isolated within the firms or easily transferred will have an impact upon the longevity of a firm’s competitive advantage.
Give a description of non-replicability.
Non-replicability is when a firm’s resources and capabilities are immobile, rival firms may try to create their own. Having highly complex resources and capabilities will prevent other firms from creating substitutes thus allowing for a competitive advantage to be maintained.
