International Strategic Management
Table of Contents
1. Introduction ………………………………………………..2
2. Literature review ………………………………………………...3
3. Discussion and Critical Analysis…………………………………11
4. Conclusion ……………………………………………….12
5. References ………………………………………………..13
1. Introduction
This paper is trying to present and combine the basic elements of Resource-based View that are discussed in three academic articles. A resource based view of the firm” by Wernerfelt, “At first, makes an effort to integrate important elements of sustainable competitive advantage from the Recourse-based view into a model of four conditions that underlie the sustained competitive advantage for a firm. It describes the first condition, heterogeneity, based on the notion that firms are fundamentally heterogeneous, in terms of their resources and internal capabilities. Then gives an insight on the second condition of this model, the ex post limits to competition, with a focus on the imperfect imitability and the imperfect substitutability of the resources and suggests isolated mechanisms for the firm to be protected and prevent its resources from imitation. Then, explains the third condition, imperfect mobility, and how recourses which can described as imperfectly mobile can be a source of sustained advantage. The last condition that is described as necessary for the firm to meet so as to gain competitive advantage is ex ante limits to competition. Later in this paper, insight is given in the perception of competitive advantage of the company from the resources view instead of the product view. The resources here are not always treated as the raw materials to make a product, but merely as the strategy that the firm uses in order to be the leader of a market. The strategy could be brand name, machinery, trade contacts, and etc. The resources will bring us into the
1. Introduction ………………………………………………..2
2. Literature review ………………………………………………...3
3. Discussion and Critical Analysis…………………………………11
4. Conclusion ……………………………………………….12
5. References ………………………………………………..13
1. Introduction
This paper is trying to present and combine the basic elements of Resource-based View that are discussed in three academic articles. A resource based view of the firm” by Wernerfelt, “At first, makes an effort to integrate important elements of sustainable competitive advantage from the Recourse-based view into a model of four conditions that underlie the sustained competitive advantage for a firm. It describes the first condition, heterogeneity, based on the notion that firms are fundamentally heterogeneous, in terms of their resources and internal capabilities. Then gives an insight on the second condition of this model, the ex post limits to competition, with a focus on the imperfect imitability and the imperfect substitutability of the resources and suggests isolated mechanisms for the firm to be protected and prevent its resources from imitation. Then, explains the third condition, imperfect mobility, and how recourses which can described as imperfectly mobile can be a source of sustained advantage. The last condition that is described as necessary for the firm to meet so as to gain competitive advantage is ex ante limits to competition. Later in this paper, insight is given in the perception of competitive advantage of the company from the resources view instead of the product view. The resources here are not always treated as the raw materials to make a product, but merely as the strategy that the firm uses in order to be the leader of a market. The strategy could be brand name, machinery, trade contacts, and etc. The resources will bring us into the
References: Barney, J., (2001), Is the Resource-Based View a Useful Perspective for Strategic Management Research? Yes, Academy of Management Review, Vol.26, No.1, p.41 Wernerfelt, B., (1984), A Resource Based View of the Firm, Strategic Management Journal, Vol.5, p.171 Margaret A. Peteraf, (Mar., 1993), Reviewed The Cornerstones of Competitive Advantage: A Resource-Based View, Strategic Management Journal, Vol. 14, No. 3 pp. 179-191 Alain Verbeke, International Business Strategy