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Resource-Based View Issues

   

Added on  2021-01-08

17 Pages4087 Words92 Views
Compare and contrast researchers’views and opinions concerned withthe issue of the Resource-Base

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15

INTRODUCTIONResource based view is a model that focuses over analysing the internal resources inorder to determine most valuable capabilities that support an organisation to achieve competitiveadvantage. This model is generally used VIRO analytical tool for determining the resources thatare rare, costly to imitate, valuable and organised. This report contains a detail description ofResource based view along with its criticism and defence. In addition to this it also contains twotheories that are related with RBV such as Process based view and knowledge based view alongwith their utilities as well as implications.MAIN BODYResource based view refers to the managerial framework which is used by companies todetermine the strategical resources that have an ability to deal with competition prevailing inmarket. This model generally focused toward performing an analysis over the resources that acompany have and then determining the most essential one that have an ability to enhance theperformance of company (Lioukas, Reuer, and Zollo, 2016). These resources can be assets,organisational process, capabilities, firm attributes, knowledge and informations etc. which areconsider as input that facilitates organisation to perform its operations effectively. Apart from this, resource based view analysis has a direct relation with the strategies thatare being formed by an organisation to achieve their set targets or goals. This framework focusover determining the resources that are rare and essential to deal with the market demand whichcan also be said to have comparative advantage. This further support company to formulatestrategy that support them in producing and offering product at lower possible price which alsocreates value. Under resources based view, strategists usually focuses over formulating set ofactions that will exploit internal resources and capabilities in best possible manner so that1

external opportunities can be exploited effectively which help in achieving competitiveadvantage. A manager focus over evaluating a internal capabilities or resources through RBVframework in order to determine the actions to be taken for dealing with threats that are presentin market so that it can maintain its market position. Therefore, it can be said that Resourcebased view is not a strategy because it is a framework the perform evaluation over resources thata company have and provide information that support in formulating strategy. The tacticsformulated through this evaluation help company to achieve sustainability as well as competitiveadvantage at marketplace. As per the view point of Backman, Verbeke and Schulz, (2017), resource based view isan analysing the availability of resources with an aim to determine the way through whichresources can be used in effective and efficient manner in order to achieve competitiveadvantage. By this evaluation company will be able to determine the area which it required tofocus more in order to deal with the external changes as well as competition in market. Forinstance, Google is well known for its internal capabilities such as a diversified workforce whichbelongs to different specialisation, culture or nationality. Therefore these technical expertise areconsider as most valuable resources of the company which work toward providing services thatcreate value among customer. This is the main reason that Google establish a monopoly inmarket and doesn't have much competitors in market that can take up their position. According to the Jurevicius Ovidijus (2013), RBV is an approach that help company toachieve competitive advantage at marketplace. This model suggest that a company must lookinside in order to find the sources of competitive advantage despite of looking over the externalenvironment. Through RBV analysis it become much more easier to exploit the opportunities2

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