review RBV
Strategic Management & Business Analysis
“The Critical Assessment of the Resource-Based View of Strategic Management: The Source of Heterogeneity of the firm”
Tokuda Akio
Ritsumeikan International Affairs Vol.3, pp125-150 (2005)
Paper Review
Introduction:
The paper in hand is discussing the resource based view (RBV) while highlighting the entrepreneurial view point as a competitive advantage. It also formulize the conceptual framework of the resource based view by contrasting it to with competitive force approach (CFA), as the CFA explores the source of sustainable competitive advantage in the external environment of the firm while the RBV pays attention to the internal resources of the firm.
The main objective of this paper is to amend the RBV from a dynamic point of view & incorporate the theory of entrepreneurship in the RBV of strategic management. As it is insufficient that most researchers have overlooked the entrepreneurial abilities and strategies as a crucial source of competitive advantage of a firm despite that the abilities of the entrepreneur are undoubtedly the principal human resource possessed by a firm.
I. Strategy & External Environment of a Firm:
Researches has proven that the firm needs to seek strategic fit between the external environment (threats & opportunities) & the internal resources the firm (strength & weaknesses). In 1980s the CFA presented by Porter conceptual framework was based on the “structure – conduct – performance paradigm” of industrial organization, he examined the question of “how will a firm be able to get a competitive advantage over its competitors?”
The rules of competition and the strategies of a firm are strongly influenced by the CFA. Therefore the strategic issue of firm concerned their competitive positioning.
Competitors tend to seek a better position in order to gain a monopoly rent and they avoid being involved into competition or practice pressure by
“The Critical Assessment of the Resource-Based View of Strategic Management: The Source of Heterogeneity of the firm”
Tokuda Akio
Ritsumeikan International Affairs Vol.3, pp125-150 (2005)
Paper Review
Introduction:
The paper in hand is discussing the resource based view (RBV) while highlighting the entrepreneurial view point as a competitive advantage. It also formulize the conceptual framework of the resource based view by contrasting it to with competitive force approach (CFA), as the CFA explores the source of sustainable competitive advantage in the external environment of the firm while the RBV pays attention to the internal resources of the firm.
The main objective of this paper is to amend the RBV from a dynamic point of view & incorporate the theory of entrepreneurship in the RBV of strategic management. As it is insufficient that most researchers have overlooked the entrepreneurial abilities and strategies as a crucial source of competitive advantage of a firm despite that the abilities of the entrepreneur are undoubtedly the principal human resource possessed by a firm.
I. Strategy & External Environment of a Firm:
Researches has proven that the firm needs to seek strategic fit between the external environment (threats & opportunities) & the internal resources the firm (strength & weaknesses). In 1980s the CFA presented by Porter conceptual framework was based on the “structure – conduct – performance paradigm” of industrial organization, he examined the question of “how will a firm be able to get a competitive advantage over its competitors?”
The rules of competition and the strategies of a firm are strongly influenced by the CFA. Therefore the strategic issue of firm concerned their competitive positioning.
Competitors tend to seek a better position in order to gain a monopoly rent and they avoid being involved into competition or practice pressure by