The Resource-Based View within the Conversation of Strategic Management

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The Resource-Based View within the Conversation
of Strategic Management
Presented by Christina L. Frye
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The Resource-Based View within the Conversation
of Strategic Management

• Joseph T. Mahoney J. Rajendran Pandian
• (1992). Strategic Management Journal, 13(5)
  363-380.

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Overview

• At time of writing, RBV was an emerging
  framework.
• Central Thesis The resource-based view
  stimulates conversation within mainstream
  strategy research and provides a framework for
  increased discussion between these research
  perspectives (p. 364).

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Overview Contd

• Complement (not contradictory or a replacement)
  to strategic management research perspectives
• RBV in the Strategy Conversation Firms are
  heterogeneous and have distinct competencies and
  capabilities ? holds diversification and
  performance implications
• RBV in the Organizational Economics Conversation
  Fits the paradigm ? 5th branch in the
  theoretical knowledge tree with agency, property
  rights, transactions cost economics, and
  evolutionary economics theories
• RBV in the Industrial Organization Conversation
  Complements research on inimitability, imperfect
  substitutability, and sustainability

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RBV in Strategy Conversation

• Firms select strategy to generate rents based on
  their resource capabilities (p. 364).
• These unique capabilities are a function of
  resources and create heterogeneity that may
  result in SCA.
• Resources influence diversification strategy by
  (1) placing limits on growth, (2) inducing
  motives for expansion, (3) directing how it
  diversifies, and (4) explaining how well it
  performs

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RBV in Organizational Economics Conversation

• Theoretical paradigm is dissatisfied with
  neoclassical theory of the firm (likewise with
  RBV)
• Neoclassical view disregards frictions in the
  market
• RBV is dynamic ? new combinations of resources
  are means to achieve SCA
• Successful deployment of resources is path
  dependent (evolutionary theory), depends on
  well-defined property rights, and is influenced
  by agency and transaction costs

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RBV in Industrial Organization Conversation

• Valuable resources are imperfectly imitable and
  imperfectly substitutable ?enables firm to
  generate and sustain rents
• Industrial organization? external focus
• Resource-based view? internal focus

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Conclusion

• RBV generalizes to strategic management and
  facilitates dialogue between scholars from
  different perspectives
• It may not be comprehensivebut builds the
  conversation