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Week 9 Internal analysis: identifying resources and capabilities - Coggle…
Week 9 Internal analysis: identifying resources and capabilities
Internal analysis & resource-based view - RBV Grant (1991) and Barney (1991) or Robert Grant (1991; 1996; 2016)
tangible & intangile resources Grant, 2016)
tangible resources (e.g. cash, equipment, estates and land)
Tangible resources include financial and physical resources.
Financial resources refer to capital that the organisation owns.
pyhsical like factory, premisises etc
measured by market value or fixed asset
Under the RBV, an organisation’s culture is viewed as a resource as it influences the development of organisational capabilities and the effectiveness with which these capabilities are being deployed to gain competitive advantage (Barney, 1986)
intangible resources (e.g. reputation, culture, property rights and patents), and
Intangible resources comprise culture, reputation, relationships, org culture, tech resources like intellectual property and for innovation patents
which these capabilities are being deployed to gain competitive advantage (Barney, 1986).
"Simply, organisational culture can be conceived of as a system of beliefs and values an organisation holds (Schein, 2004)"
human resources (e.g. skills, competencies and motivation).
"human capital, consist of people who lead, manage and work for the organisation"
collaberation - in strategi change
"According to the RBV, human resources management focuses on the skills and competences that employees possess, rather than on their job roles (Lawler, 1994)."
definition: ""An organisation’s
resources
refer to the productive assets that it owns and controls; these include tangible resources (such as cash, equipment and land), intangible resources (such as patents, reputation and culture) and human resources (such as skills and motivation).""
resources as something that organisations
have
, thought of as nouns
Resources alone not helpful - how do they use resources? "According to Grant (2016) the main source of competitive advantage lies in an organisation’s capabilities"
idea of capabilities
look at the ways in which it is using its resources, aiming to achieve competitive advantage.
DEF: ""An organisation’s
capabilities
refer to its capacity to deploy its resources; organisations ‘bundle’ resources to build capabilities. Put simply, it is how the resource is used that represents the link between a resource and a capability.""
capabilities are something that organisations
do
, described using verbs
old theories call it competencies
organisation’s resources and capabilities are located at the micro-level
Applicable to private and public firms
key concept behind the RBV is that the basis for competitive advantage lies in the application of the valuable resources at the firm’s disposal.
the story of resource-based view
Ricardian rents
Schumpeter and Penrose
Profits through capabilities - Penrose
" a firm possesses
competitive advantage
when it is implementing a value-creating strategy that is not being implemented by its competitors. The firm should thereby achieve superior performance compared with its competitors.*"
According to Barney (1991), a firm can be said to possess competitive advantage when it achieves superior performance over its competitors by implementing a value-creating strategy that is not simultaneously being implemented by a competitor.
he explains difference:
simple
competitive advantage from
sustainable
competitive advantage
Sustainable competitive advantage is based on resources or capabilities that are valuable, rare and inimitable and the firm is organised to make the most of their full competitive potential (an analysis of resources and capabilities according to these characteristics is also called VRIO analysis
Sustainable competitive advantage is when competitive advantage is durable
simple competitive advantage - creating value strategy that compeititon doesnt have