Resource Based Value
Outline the RBV of the firm and show how this new concept offers HR opportunities to be a more strategic function.
Introduction
The resource-based view (RBV) is a business management tool used to determine the strategic resources available to a company. The fundamental principle of the RBV is that the basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firm 's disposal. To transform a short-run competitive advantage into a sustained competitive advantage requires that these resources are heterogeneous in nature and not perfectly mobile.
Resource-based view (RBV) emphasizes that if organizational resources are valuable, rare, difficult to imitate and non-substitutable, then organization can sustain competitive advantages. RBV is an important set of spectacles for viewing the strategic problems facing the firm. It focuses on the analysis of internal strengths and weaknesses, to help firms develop valuable resources and erect barriers to imitation of them. Resource will continuously create value to firm and market. Superior firms must have distinctive resources in order to identify themselves in the industry. Basically, resources can be divided into three broad categories which are tangible, intangible and capabilities.
Tangible resources refer to physical assets that exist in the balance sheet such as buildings, facilities and machinery. It creates value to firm as in the following example: Toyota have different branches in over 28 countries, this resource helps Toyota serve a wide range of customers across the globe.
Intangible resources refer to abstract assets in a firm such things as company reputations, brand names, cultures, technological knowledge, patents and trademarks, and accumulated learning and experience. These assets often lay an important role in competitive advantage (or disadvantage), and firm value. For example: Toyota is well-known for safety and price reasonable
Introduction
The resource-based view (RBV) is a business management tool used to determine the strategic resources available to a company. The fundamental principle of the RBV is that the basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firm 's disposal. To transform a short-run competitive advantage into a sustained competitive advantage requires that these resources are heterogeneous in nature and not perfectly mobile.
Resource-based view (RBV) emphasizes that if organizational resources are valuable, rare, difficult to imitate and non-substitutable, then organization can sustain competitive advantages. RBV is an important set of spectacles for viewing the strategic problems facing the firm. It focuses on the analysis of internal strengths and weaknesses, to help firms develop valuable resources and erect barriers to imitation of them. Resource will continuously create value to firm and market. Superior firms must have distinctive resources in order to identify themselves in the industry. Basically, resources can be divided into three broad categories which are tangible, intangible and capabilities.
Tangible resources refer to physical assets that exist in the balance sheet such as buildings, facilities and machinery. It creates value to firm as in the following example: Toyota have different branches in over 28 countries, this resource helps Toyota serve a wide range of customers across the globe.
Intangible resources refer to abstract assets in a firm such things as company reputations, brand names, cultures, technological knowledge, patents and trademarks, and accumulated learning and experience. These assets often lay an important role in competitive advantage (or disadvantage), and firm value. For example: Toyota is well-known for safety and price reasonable
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