Resource Based View Of The Firm Theory. The resource based view rbv of the organisation is a strategy for achieving competitive advantage that emerged during the 1980s and 1990s following the works of academics and businessmen such as birger wernerfelt prahalad and hamel spender and grant. Resource based theory suggests that resources that are valuable rare difficult to imitate and nonsubstitutable best position a firm for long term success.
A patent holder for example appropriates part of the profits of his licence holders. These strategic resources can provide the foundation to develop firm capabilities that can lead to superior performance over time. Resource based theory suggests that resources that are valuable rare difficult to imitate and nonsubstitutable best position a firm for long term success.
Resources that are valuable and rare can lead to the creation of competitive advantage.
However some scholars argue that there was evidence for a fragmentary resource based theory from the 1930s. These strategic resources can provide the foundation to develop firm capabilities that can lead to superior performance over time. Resource based theory suggests that resources that are valuable rare difficult to imitate and nonsubstitutable best position a firm for long term success. The resource based view rbv argues that firms possess resources a subset of which enable them to achieve competitive advantage and a subset of those that lead to superior long term performance.
