Unlocking Competitive Advantage

Study Notes

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.

Description

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.