Literature Review on Resource Based View

Running head: LITERATURE REVIEW
LITERATURE REVIEW
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LITERATURE REVIEW1
Literature Review
Concept of resource based view
Resource based view can be defined as a managerial framework that are generally
utilized in order to deduce the strategic resources that a firm can exploit in order to achieve
sustainable competitive advantage. A framework that determines strategic resources in an
organization is often termed as resource based view. The sustainable position in the market is
well assorted by the organizations with the help of research based view framework in order to
gain competitive edge and ensure development in a sustainable way. According to Barney,
Wright & Ketchen (2001), the resource based view of the firms and organizations in the present
business environment is indeed an important strategy as well as step taken up by them. The paper
discusses about the fact that sustainable competitive advantage derives from the capabilities and
resources that a firm controls, that are valuable, rare, imperfectly imitable and not sustainable. Te
respective resources and capabilities of the organization can also be viewed as assets (both
tangible and intangible). The tangible and intangible assets include the management skills and
capabilities of a firm, the organizational processes and routines of the firm and the knowledge as
well as information it possesses and controls.
The article discusses about the significance of resource based view in the strategic
management of an organization, its scope and limitations, theoretical frameworks and empirical
testing. The respective paper introspects the theoretical frameworks and empirical issues of
resource based view since the year 1991, the authors of the article took a dual approach. The first
approach was that the contributors to the 1991 issue were asked to revisit their earlier articles and
consider developments over the decade that passed along in short commentary forms on a sheet

LITERATURE REVIEW2
of paper. The second approach was that of latest and full length academic papers that would
scrutinize and analyze the impact of RBV on specific subject areas. With the help of the
respective approaches, the authors had been able to analyze the scope, limitations and position of
resource based view in the global business environment since the year 1991. The respective
article is important because it provides the readers with the idea about the successive changes
and amendments the resource based view has undergone throughout the years since 1991 to the
contemporary times. The resources that were utilized in order to introspect the respective area
had encompassed subjects and disciplines such as human resource management, economics,
entrepreneurship, marketing and international business. The findings are multifaceted and
multidimensional which has led to the success of the paper as it has provided the readers with
multidisciplinary approaches and information regarding resource based view.
According to the article by Sonia & Sylvie (2010), the authors have discussed the
challenges and limitations faced by the online news industries in the United States by utilizing
various approaches to resource based views. The paper is considered to be important as it tries to
enumerate the concept of resource based view and how organizations utilize them in the strategic
decisions that are generally formulated with the expectation of growth and opportunities. The
respective paper dives deep into the pressing problems of online media in US, which is the strict
competitive traditional media. The online media of US faces harsh competition from the
established traditional media in terms of quality contents and revenue generation. Therefore, the
two approaches, industrial organization and research based view of the firm are taken into
consideration in order to locate determinants of market performance in the industry. The article
reveals an important fact that Industrial organization approach served to be more accurate and
effective than research based view of the firm. The new markets in the media industry are more