Resource Based View (RBV) of Competitive Advantage: An Overview

Pankaj M. Madhani

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Innovation and Knowledge Management Human Resource and Talent Management Intellectual Capital and Performance Analysis

Abstract

The Resource Based View (RBV) takes an ‘inside-out’ view or firm-specific perspective on why organizations succeed or fail in the market place. According to RBV, firm’s abilities also allow some firms to add value in customer value chain, develop new products or expand in new marketplace. The RBV draws upon the resources and capabilities that reside within the organization in order to develop sustainable competitive advantages. However, not all the resources of firm will be strategic and hence, sources of competitive advantage. Competitive advantage occurs only when there is a situation of resource heterogeneity and resource immobility.

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1991Firm Resources and Sustained Competitive Advantage 1995The Theory of the Growth of the Firm 2003The dynamic resource‐based view: capability lifecycles 1987The Concept of Corporate Strategy 2012Gaining and sustaining a competitive advantage 1987Mobilizing Invisible Assets 1997Towards a Strategic Theory of the Firm 2009The Core Competence of the Corporation

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