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Review On The Relationship Between Organizational Resources, Competitive Advantage And Performance

5525 words - 23 pages Journal of Management and Strategy Vol. 4, No. 1; 2013
Published by Sciedu Press 62 ISSN 1923-3965 E-ISSN 1923-3973
The Offensive Framework of Resource Based View (RBV): Inhibiting Others from Pursuing Their Own Values
Dr. Seung Hoon Jang Bloomsburg University of Pennsylvania
327 Sutliff Hall, College of Business, East 2nd Street, Bloomsburg, PA, USA E-mail:
Received: January 28, 2013 Accepted: February 8, 2013 Online Published: February 15, 2013 doi:10.5430/jms.v4n1p62 URL: Abstract This study explores the overlooked aspect of resource based view (RBV). Given the assumption that the relative superiority of resources ...view middle of the document...

Particularly, Barney (1991) contributed to the development of RBV toward the fine-grained level. RBV can be differentiated from other theoretical disciplines like neoclassical and evolutionary economics (Barney, 2001a; Barney, 2001b; Barney, Ketchen, & Wright, 2011). It is beyond doubt that the achievement and management of resources have been the integral part of business organizations and their activities. Traditionally, scholars in this research stream have focused on how firms accumulate and utilize their value to create their own value. Several studies have explored the acquisition of firm resources under various contexts like foreign direct investment (FDI) (Hooley, Cox, Shipley, Fahy, Beracs, & Kolos, 1996), technology-based businesses (Yli-Renko, Autio, & Sapienza, 2001), entrepreneurial firms (Leung, Zhang, Wong, & Foo, 2006), small businesses (Winborg & Landström, 2001), and inter-organizational networks (Wever, Martens, & Vandenbempt, 2005). In addition, the value creation from firm resources has been investigated by strategy and organization scholars in accordance with topics, including social capital (Tsai & Ghoshal, 1998), e-business (Amit & Zott, 2001), organizational learning (Kang, Morris, & Snell, 2007), and professional service firms (Løwendahl, Revang, & Fosstenløkken, 2001). For conventional researchers, firms are considered as farmers or manufacturers creating certain types of products or services, resulting in their competitive advantage. When considering the role of resource differences in explaining the result of competition, it seems likely that firms can retain their competitive advantage based on the "relative" superiority of resource. On one hand, they create own value to retain competitive advantage as the literature proposes. On the other hand, they can hinder competitors from generating their value as the Air Force uses strategic bombing to destroy the enemy's aircraft factories. Therefore, both business firms and the military can continue their lead in resource accumulation, leading to successful competition. Few researchers, however, have explored how firms utilize this alternative method to achieve better resource and competitive advantage. Journal of Management and Strategy Vol. 4, No. 1; 2013
Published by Sciedu Press 63 ISSN 1923-3965 E-ISSN 1923-3973
This study makes advances in providing this offensive framework of RBV to the management and organization field. The objective of this study is exploring the process of how and why firms inhibit in order to broaden our understating in strategic management now-a-days. For this purpose, major studies in institutionalization and relevant areas are reviewed. And then, the above literature streams are used to provide theoretical propositions that depict how firms emit isomorphic pressures to enhance their competitive advantage. At last, the implications of this viewpoint and future...

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