Week 4 - Resources, Capabilities and the Resource-Based View Flashcards

1
Q

What is De Wit’s (2020) Markets and Resources Paradox?

A

About considering how CA can be generated from an outside-in perspective and inside out perspective

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2
Q

What perspective do Rs and Cs relate to?

A
An inside-out perspective. 
Resources over markets.
Internal, strength driven
Consider resource base and value chain
Adaptation OF THE environment
Attaining districtive Rs
Strategy often = building resource base
Comp. edge when have superior resources/imitation barriers
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3
Q

What is the RBV?

A

Theoretical framwork
Used to understand how CA is achieved and sustained within a firm
Inside out perspective, so oppsite of Porter’s positioning school

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4
Q

How does Kraaijenbrink et al (2010) view this model?

A

Supports it
“One of most influentual and cited theories in the history of management theorizing”
Complements Porter’s model - “Complement rather than compete with positioning school”
As RBV doesn’t look at everything, best used in conjunction with positioning school to gather whole picture

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5
Q

Who are the Key Authors of the RBV?

A

Birgir Wernerfelt

Jay Barney

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6
Q

What is Grant’s view on the RBV.

A

Believes it is a reductionist concept as simplifies down to Rs and Cs
“A conceptualization of the firm as a collection of Rs and Cs that form the basis of a CA”

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7
Q

What are resources?

A

inputs into the production of Gs/Ss
e.g. physical/human capital and financial resources
Can be tangible/intangible

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8
Q

What are capabilities?

A

What firm can do.
Cs make Rs productive
Develop over time as Cs interact

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9
Q

What is the process of addressing Rs and Cs and then exploiting them?

A

1) Classifies capabilities - functional value chain
2) Appraise the Rs and Cs - based on strategic importance and strength
3) Develop strategic implications - by exploiting key strengths and managing weaknesses

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10
Q

How is Coca Cola an example of using resources to create capabilities?

A

Tangible Rs - secret receipe and dist. networks
Intangible Rs - great sales staff and globally recognised brand
Capability = globally known drink that is widely available to customers worldwide

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11
Q

How should the RBV be used with caution?

A

It argues that strategy derives from unique colelctions of Rs and Cs
RBV is not a guide for strategy making, only a way of understanding how and why firms develop in unique manners

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12
Q

Who developed the VRIO framework?

A

Barney
Best used in conjunction with other frameworks as has caveats
Helps consider what competitive implications a resource/capability offers to the firm

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13
Q

What are Kraaijenbrink et al’s (2010) most problematic critiques of the RBV?

A

1) Neither necessary nor sufficient for SCA - does not suffciently consider syngery within resource bundles as a SCA. Does not suf. consider judgement/individuals role in value assessment and creation.
2) Value of resources is indeterminate to prove useful for the theory - a more creative/subjective notion of value needed.
3) Definition of resource is unworkable - too inclusive a term as can inc anything if analysed right. V.problematic for a theory around resources.

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14
Q

How have IBM used dynamic capabilities?

A

Moved from hardware to softeware & other services in last 2 decades.
Pace of evolution/change accelerated under last 3 CEOs
They manage DCs by:
Monthly meetings of the tech team and strat team
300+ members in the integration and values team to promote iniaiatives across divisional boundaries
Deep dives by adhoc team to explore opportunities

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