Unlocking Competitive Advantage

Resource-Based View (RBV) of Strategy

• Competitive advantage and superior performance of an organization are explained by the unique bundle of resources and capabilities it possesses.

Resources in RBV Framework

• Resources are tangible and intangible assets that an organization owns or controls, such as physical assets, human resources, financial resources, and organizational capabilities.
• Resources can be categorized as:
  • Tangible resources (e.g., equipment, buildings, and financial assets)
  • Intangible resources (e.g., knowledge, skills, and reputation)

Competences in RBV Framework

• Competences refer to the ability of an organization to utilize its resources effectively and efficiently to achieve its goals.
• Competences are often rooted in the skills, knowledge, and experience of an organization's employees.

Dynamic Capability in RBV Framework

• Dynamic capability refers to an organization's ability to reconfigure and adapt its resources and competences in response to changing environmental conditions.
• Dynamic capability enables an organization to maintain its competitive advantage over time.

Limitations of Capabilities

• Capabilities that were effective in the past may become obsolete or less effective over time due to changes in the environment, market, or technology.
• An organization's inability to adapt its capabilities to changing circumstances can lead to a decline in its competitive advantage and performance.

Test your knowledge of the resource-based view (RBV) of strategy and how it relates to competitive advantage and superior performance. Explore the concepts of resources and competences and understand how they contribute to organizational success.