Chapter 4 Flashcards
Resource-based view:
A theoretical perspective that posits that firm performance is
fundamentally driven by firm-specific resources
Competitive advantage:
The ability of a firm to outperform its rivals
Resources:
The tangible and intangible assets a
firm uses to choose and implement its strategies
Primary resources:
The tangible and intangible
assets as well as human resolves that a firm uses
to choose and implement its strategies
Capabilities:
Firm-specific abilities to use
resources to achieve organisational objectives
Tangible assets:
Assets that are observable and
easily quantified
Intangible assets:
Assets that are hard to observe
and difficult (or sometimes impossible) to quantify
Goodwill:
The value of a firm’s abilities to develop
and leverage its reputation
Human Resources:
Resources embedded in individuals working in an organization
Organisational culture:
Employees’ shared values, traditions and social norms within an
organization
Value chain:
A chain of activities vertically related in the production of goods and services
Dynamic capabilities:
Higher level capabilities that enable an organization to continuously adapt
to new technologies and changed in the external environment
VRIO framework:
The resource-based framework that focuses on the value creation (V), rarity (R),
imitability (I) and organisational (O) aspects of resources
Temporary competitive advantage:
The ability to outperform rivals for a limited time
Causal ambiguity:
The difficulty of identifying the casual determinants of successful firm
performance
Social complexity:
The phenomenon describing the multifaceted and socially interconnected
ways in which firms organise and operate, often making imitation by competitors challenging
Sustainable competitive advantage:
The ability to deliver persistently above-average
performance
Appropriability:
It’s about how much of the value a firm creates it gets to keep—instead of it being lost to competitors, imitators, or buyers.
Benchmarking:
An examination of resources to perform a particular activity compared against
competitors
Outsourcing:
Turning over an activity to an outside supplier that will perform it on behalf of the
firm
Business process outsourcing (BPO):
The outsourcing of business services such as IT, HR or
logistics
Offshoring:
Moving an activity to a location abroad
Near-shoring:
Offshoring to a nearby location
Reshoring:
Bringing activities back to a firm’s home country
