Resource Based View Definition. This theory highlights the need for a fit between a company s strategic resources and the external market rather than focusing solely on its external competitive environment. The resource based theory or resource based view helps in determining the resources available within the firm and relates them with the capabilities of the firm in a silent manner.
Fundamentally this theory formulates the firm to be a bundle of resources. The resource based view rbv is a managerial framework used to determine the strategic resources a firm can exploit to achieve sustainable competitive advantage. Every company has to compete in the market with multiple competitors.
This theory highlights the need for a fit between a company s strategic resources and the external market rather than focusing solely on its external competitive environment.
This brings into consideration the profitability and the value factor associated with the firm colbert 2004. If a resource exhibits vrio attributes the resource enables the firm to gain and sustain competitive advantage. This theory highlights the need for a fit between a company s strategic resources and the external market rather than focusing solely on its external competitive environment. The resource based theory or resource based view helps in determining the resources available within the firm and relates them with the capabilities of the firm in a silent manner.
