week 7 Flashcards
(20 cards)
What is the Resource-Based View (RBV)?
A strategic theory suggesting that firms achieve competitive advantage through valuable, rare, inimitable, and well-organised internal resources and capabilities.
Who is the key scholar behind the RBV?
Jay Barney (1991).
What is the difference between resources and capabilities?
Resources are what a firm has (tangible or intangible); capabilities are what a firm does well with its resources.
What are tangible and intangible resources?
Tangible = physical assets (equipment, buildings); Intangible = brand, reputation, IP, tech, culture.
What are organisational capabilities?
Skills and routines embedded in the firm’s processes that allow it to deploy resources effectively.
What does the VRINO framework stand for?
Valuable, Rare, Inimitable, Non-substitutable, Organisation.
What makes a resource valuable under the VRINO framework?
If it helps exploit opportunities or neutralise threats.
What does ‘rare’ mean in VRINO?
Few firms possess it—provides competitive edge
What does ‘inimitable’ mean in VRINO?
Difficult or expensive for competitors to copy.
What does ‘non-substitutable’ mean?
No alternative resource can perform the same role.
What does the ‘O’ in VRINO refer to?
The organisation must be ready and structured to exploit the resource.
What are dynamic capabilities?
A firm’s ability to adapt, integrate, and reconfigure resources to address changing environments
Who developed the idea of dynamic capabilities?
Teece, Pisano, and Shuen (1997).
What is the GE Business Screen?
A tool linking competitive strength and industry attractiveness to guide strategic investment.
What is the value chain?
A model that shows how value is added at each step of the business process, from supply to customer delivery.
What is capability routinisation?
The creation of routines through repetition and learning that allow consistent transformation of resources into outputs.
What functional capabilities are discussed in RBV?
Marketing (revenue), Technology (innovation), Operations (efficiency).
What’s an example of measuring capabilities in education?
Using input (study time) and output (grades) data to assess how well students convert effort into performance.
How does RBV relate to personal career strategy?
Understanding and developing your personal capabilities helps build your CV, brand, and competitive edge.
What are the three parts of the “coherence premium” strategy model?
- Value proposition, 2. Differentiating capabilities, 3. Portfolio of products/services.
