RBV of the Firm- BIRGER WERNERFELT’s PAPER

The paper explores the usefulness of analysing firins froin the resource side rather than from the product side. In analogy to entry barriers and growth-share lnatrices, the concepts of resource position barrier and resource-product lnatrices are suggested. These tools are then used to highlight the new strategic options which naturallyemergefroin theresource perspective. Read more on 

Resource-Based View of the firm

The resource-based view (RBV) as a basis for the competitive advantage of a firm lies primarily in the application of a bundle of valuable tangible or intangible resources at the firm’s disposal (Wernerfelt, 1984, p172; Rumelt, 1984, p557-558; Penrose, 1959[1]). To transform a short-run competitive advantage into a sustained competitive advantage requires that these resources are heterogeneous in nature and not perfectly mobile[2]:105–106 (Peteraf, 1993, p180). Effectively, this translates into valuable resources that are neither perfectly imitable nor substitutable without great effort (Barney, 1991[2]:117).

In addition, through a consistent and sophisticated bundling of activities, their mutual reinforcement can help to further differentiate individual capabilities. Read more on