Chapter 9 Flashcards
(33 cards)
What does the resource-based view say?
The firm is modeled as a bundle of resources
The competitive advantage depends on the characteristics of the resources at its disposal
What are the 3 important characteristics of resources in the resource based view?
- Valuable
- Rarity
- Inimitability
- Nonsubstitutability
When is a resource considered valuable according to the resource based view?
When it underpins a value-adding strategy
When they enable the firm to offer a value proposition superior to competitors or offered at a lower price?
When is a resource considered rare according the the resource based view?
When it is distributed in a way that is unique to the firm
When it is scarce and not readily available for acquisition by competitors
When is a resource considered inimitable according to the resource based view?
When it is impossible or difficult to duplicate for competitors
When is a resource nonsubstitutable according to the resource based view?
When competitors are unable to replicate the value proposition using replacement resources for the ones that are rate, valuable, and inimitable
What is response lag?
A measure of the delay in competitive response. The higher the response lag, the more resilient the advantage
What are response lag drivers?
Characteristics of the technology, the firm, competitors, and value system that combine to make replication of the strategic initiative difficult and costly
What are the 4 categories of barriers to erosion?
- IT Resources
- Complementary Resources
- IT Project
- Preemption
What are the two classes of response lag drivers within the IT resources barrier?
- IT resources/assets
- IT capabilities
What is the IT assets response lag driver and how does it contribute to response lag?
Subset of the IT resources barrier
Technology available to the organization
They speed up development and introduction of the initiative’s IT core
What are the categories of the IT assets response lag driver?
- IT Infrastructure: Interconnected IT components to provide standard services
- Information repositories: Data stores with extensive information about customers, suppliers, products, or operations
What is the IT capabilities response lag driver and how does it contribute to response lag?
Derived from the skills and abilities of the workforce
Contributes to response lag because it facilitates the technology’s design and development
What are the categories of the IT capabilities response lag driver?
- Technical Skills and Business Understanding: The ability to design and develop effective applications with the ability to relate the IT solutions to business problems
- IT Management Skills: Ability to provide leadership and manage IT projects which can reduce development cost and lead time
- Relationship Asset: Mutual respect and trust between IS and business managers allowing for effective coordination
What are the three classes of response lag drivers within the complementary resources barrier?
- Structural resources
- Capabilities
- External resources
What is the structural resources response lag driver and how does it contribute to response lag?
Non-IT related assets used to enact initiatives
Creates response lag by making a strategic initiative difficult, costly, and time consuming to imitate
What are the categories of the structural resources response lag driver?
- Tangible Assets: Competitive scope, scale of operations, organizational structure, governance, slack resources
- Intangible Assets: Corporate culture, top management commitment, ability to manage risk
What is the capabilities response lag driver and how does it contribute to response lag?
Defines how the firm carries out productive activities. Activities that are performed and the steps that make up activities
What are the categories of the capabilities response lag driver?
- Activity System: Configuration of activities that contributes to response lag when the IT core supports activities so that replication of technology alone is not enough
- Business Processes: Series of steps the firm performs to complete an activity. Response lag depends on distinctiveness and strategic value
What is the external assets response lag driver and how does it contribute to response lag?
Assets like brand, reputation, and relationships that don’t exist within the firm
Forces competitors to develop a comparable of external resources before producing an effective response
What are the two classes of response lag drivers within the IT project barrier?
- IT characteristics
- Implementation process
What are the categories of the IT characteristics response lag driver?
- IT Complexity: Function of the bundle of skills and knowledge necessary to develop, implement, and use the IT. Raises development lead times for competitive response
- IT Uniqueness: Unique IT creates knowledge barriers as competitors need to learn how the IT works in order to implement it
- Visibility: Extent to which competitors can observe the competing technology. It is harder to imitate a tech capability that you cannot see
What are the categories of the implementation process response lag driver?
- Complexity: Size and scope of the project, functional units involved. Difficult to integrate needed components into an effective system
- Degree of Process Change: Number of departments and organizations that will be impacted by the initiative. More departments and boundaries crossed makes change harder and riskier
What are the two classes of response lag drivers within the preemption barrier?
- Switching costs
- Value system characteristics
