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 ⊕