the global pharmaceutical industry- sarah holland

The Resource – Based View of the Firm and Innovation: Identification of Critical
Linkages

Konstantinos C. Kostopoulos
Doctoral Candidate, Management Sciences Laboratory, Athens University of Economics and Business, 47A Evelpidon & 33 Lefkados, GR 113 62 Athens, Greece. [e-mail]

Yiannis E. Spanos
Lecturer, Management Sciences Laboratory, Athens University of Economics and
Business

Gregory P. Prastacos
Professor, Director of the Management Sciences Laboratory, Athens University of
Economics and Business

ABSTRACT
Over the last years the resource-based view (RBV) of strategic management has attracted wide academic and managerial attention. Drawing on RBV literature, this paper analyses the interrelationships between RBV and organizational innovation. We examine those aspects of RBV that critically determine the firm’s capacity to innovate by integrating the relevant theoretical and empirical evidence. A number of contributions setting the ground for future empirical research are provided.

1

1. Introduction
The importance of the resource-based view (RBV) of strategic management is manifest in its rapid diffusion throughout the strategy literature (e.g., Wernerfelt, 1984; Rumelt,
1984; Barney, 1986, 1991; Dierickx & Cool, 1989; Mahoney & Pandian, 1992; Amit &
Schoemaker, 1993; Peteraf, 1993; Maijoor & Witteloostuijn, 1996). Drawing on previous research in RBV, this study aims at illustrating the interrelationships between RBV and organizational innovation. Specifically, we focus on those aspects of RBV that critically determine the firm’s capacity to innovate. We integrate the relevant theoretical and empirical evidence and we highlight a number of useful research contributions.
The remaining of this paper unfolds as follows: Section 2 briefly reviews the resourcebased view and comments on RBV as a developmental process. The subsequent section presents those resources and capabilities that are critical for the firm’s

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