IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v4y2020i10p152-155.html

Analysis of the Effect of Resource Based View Model As A Source of Competitive Advantage on Organization Performance

Author

Listed:
  • Ibrahim Makina

    (PhD Candidate, School of Business and Economics, Kisii University, Kenya Judith Nabwire Oundo University of Nairobi)

  • Judith Nabwire Oundo

    (University of Nairobi, Kenya)

Abstract

This paper takes a theoretical examination of the concepts of Resource Based View model as a source of competitive advantage on performance of an organization. Organizations perform different depending on the resources they own. These resources include; human resources, financial resources, technological resources and skills that employees have. An organization that has unique resources and hard to be copied in the industry then it is said to have competitive advantage. The major contributor of the resource based view model was Michael Porter (1980). Resource of the organization becomes a source of competitive advantage in two ways; organization can use resources to charge higher prices in order to increase financial performance. Secondly, a firm can use its resources to lobby barriers of new entrants in the industry. The purpose of the study was to examine the applicability of the Resource Based View in different organizations. The study utilized Desktop analysis methodology through Meta analysis. From the reviewed literature it was revealed that different organizations are endowed with different resources, they can use these resources to better performance. It was further revealed that Organizations that have non-substitutable resources can use them as a source of competitive advantage. It was further revealed that RBV has a positive impact on organization performance. The study is relevant to different policy makers in decision making; it also provides foundation for further studies. In conclusion organization that strives to have their resources become hard to be copied realizes better performance it also acts as a source of competitive advantage. The study recommends that organizations should maximize resources they have and make them hard to be copied in order to realize competitive advantage.

Suggested Citation

  • Ibrahim Makina & Judith Nabwire Oundo, 2020. "Analysis of the Effect of Resource Based View Model As A Source of Competitive Advantage on Organization Performance," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(10), pages 152-155, October.
    • Handle: RePEc:bcp:journl:v:4:y:2020:i:10:p:152-155
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-4-issue-10/152-155.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/analysis-of-the-effect-of-resource-based-view-model-as-a-source-of-competitive-advantage-on-organization-performance/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Inseong Song & Jonghoon Bae, 2016. "Politics, strong institution and competitive advantage: an examination of organizational aspiration for competition," Computational and Mathematical Organization Theory, Springer, vol. 22(4), pages 412-443, December.
    2. Ashish Sood & Gerard J. Tellis, 2009. "Do Innovations Really Pay Off? Total Stock Market Returns to Innovation," Marketing Science, INFORMS, vol. 28(3), pages 442-456, 05-06.
    3. Jana Oehmichen & Sebastian Firk & Michael Wolff & Franz Maybuechen, 2021. "Standing out from the crowd: Dedicated institutional investors and strategy uniqueness," Strategic Management Journal, Wiley Blackwell, vol. 42(6), pages 1083-1108, June.
    4. Paul Luc, 2004. "Utilisation Des Tic Et Capacites Concurrentielles : Proposition D'Un Modele De Recherche Empirique," Post-Print halshs-00150813, HAL.
    5. Frances X. Frei & Patrick T. Harker & Larry W. Hunter, 1995. "Performance in Consumer Financial Services Organizations: Framework and Results from the Pilot Study," Center for Financial Institutions Working Papers 95-03, Wharton School Center for Financial Institutions, University of Pennsylvania.
    6. Robert P. Garrett Jr. & Jeffrey G. Covin, 2015. "Internal Corporate Venture Operations Independence and Performance: A Knowledge–Based Perspective," Entrepreneurship Theory and Practice, , vol. 39(4), pages 763-790, July.
    7. John M. de Figueiredo & Brian S. Silverman, 2017. "On the Genesis of Interfirm Relational Contracts," Strategy Science, INFORMS, vol. 2(4), pages 234-245, December.
    8. Carlos Pestana Barros & Zhongfei Chen & Peter Wanke, 2016. "Efficiency in Chinese seaports: 2002–2012," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(3), pages 295-316, September.
    9. Jorge Tarziján M, 2002. "La Ventaja Competitiva De La Empresa Revisada," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 5(1), pages 31-50.
    10. Christoph Grimpe & Katrin Hussinger & Wolfgang Sofka, 2023. "Reaching beyond the acquirer-Target Dyad in M&A – Linkages to External knowledge sources and target firm valuation," DEM Discussion Paper Series 23-01, Department of Economics at the University of Luxembourg.
    11. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    12. Colombo, Massimo G. & Garrone, Paola, 1998. "Common carriers' entry into multimedia services," Information Economics and Policy, Elsevier, vol. 10(1), pages 77-105, March.
    13. Claudio Vitari & Elisabetta Raguseo, 2016. "Digital data, dynamic capability and financial performance: an empirical investigation in the era of Big Data," Post-Print halshs-01923271, HAL.
    14. David G. Sirmon & Michael A. Hitt, 2003. "Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms," Entrepreneurship Theory and Practice, , vol. 27(4), pages 339-358, October.
    15. Delgado-Verde, Miriam & Martín-de Castro, Gregorio & Amores-Salvadó, Javier, 2016. "Intellectual capital and radical innovation: Exploring the quadratic effects in technology-based manufacturing firms," Technovation, Elsevier, vol. 54(C), pages 35-47.
    16. Leiblein, Michael J. & Reuer, Jeffrey J., 2004. "Building a foreign sales base: the roles of capabilities and alliances for entrepreneurial firms," Journal of Business Venturing, Elsevier, vol. 19(2), pages 285-307, March.
    17. Roy, Kaushik & Khokle, Pradyumana, 2009. "Integrating Resource-Based and Rational Contingency Views:Understanding Design of Dynamic Capabilities of Organisations," IIMA Working Papers WP2009-02-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    18. Fuming Deng & Lu Cai & Xiaolei Ma, 2024. "Does digital transformation restrict the carbon emission intensity of enterprises? Evidence from listed manufacturing enterprises in China," Natural Resources Forum, Blackwell Publishing, vol. 48(2), pages 364-384, May.
    19. Sanchez, Ron, 2004. "Understanding competence-based management: Identifying and managing five modes of competence," Journal of Business Research, Elsevier, vol. 57(5), pages 518-532, May.
    20. Delgado-Gomez, Jose M. & Ramirez-Aleson, Marisa & Espitia-Escuer, Manuel Antonio, 2004. "Intangible resources as a key factor in the internationalisation of Spanish firms," Journal of Economic Behavior & Organization, Elsevier, vol. 53(4), pages 477-494, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:4:y:2020:i:10:p:152-155. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.