Abstract
Purpose – The field of research on resource-based competition is full of nuanced terminology and misunderstandings. This has led to confusion, and thus the authors offer a critical review, which provides a structure and clarity to this subject. The paper aims to discuss these issues.
Design/methodology/approach – This analysis structures the literature on resources, capabilities, and competences into three distinct schools of thought: the resource-based view (RBV) of the firm, the rational-equilibrium school; the dynamic capability-based view of the firm, the behavioural-evolutionary school; and the competence-based view of the firm, the social constructionist school.
Findings – The authors uncover 13 criticisms of the most widely adopted theoretical framework of the RBV of the firm – Valuable-Rare-Imperfectly imitable-Organisation (VRIO).
Research limitations/implications – The misinterpretation and neglect of the classic scholarly work may help to explain why the VRIO framework has been elevated from a view to a theory and why it has received so much attention.
Practical implications – The authors show how the relative ease of measuring resources as compared to (dynamic) capabilities and (core) competencies has helped raise the profile of RBV.
Originality/value – This analysis contributes to management research by illustrating the deviation among the three schools of thought; the authors show how this has contributed to wide terminological confusion and offer a structure to help researchers situate their work within the relevant school of thought.
Design/methodology/approach – This analysis structures the literature on resources, capabilities, and competences into three distinct schools of thought: the resource-based view (RBV) of the firm, the rational-equilibrium school; the dynamic capability-based view of the firm, the behavioural-evolutionary school; and the competence-based view of the firm, the social constructionist school.
Findings – The authors uncover 13 criticisms of the most widely adopted theoretical framework of the RBV of the firm – Valuable-Rare-Imperfectly imitable-Organisation (VRIO).
Research limitations/implications – The misinterpretation and neglect of the classic scholarly work may help to explain why the VRIO framework has been elevated from a view to a theory and why it has received so much attention.
Practical implications – The authors show how the relative ease of measuring resources as compared to (dynamic) capabilities and (core) competencies has helped raise the profile of RBV.
Originality/value – This analysis contributes to management research by illustrating the deviation among the three schools of thought; the authors show how this has contributed to wide terminological confusion and offer a structure to help researchers situate their work within the relevant school of thought.
| Original language | English |
|---|---|
| Pages (from-to) | 122-148 |
| Journal | European Business Review |
| Volume | 26 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 2014 |
Keywords
- Resource-based competition
- Resource-based views of the firm
- VRIO
- Valuable-Rare-Imperfectly imitable-Organisation