Capabilities

Capabilities
Resources
Processes
Service
Value
The Resource-Based View (RBV)
• The Resource-Based View (RBV) of strategic management proposes how an enterprise can
create and sustain competitive advantage, emphasizing organizational strengths and
weaknesses.
• The view argues that possession of key resources will result in differentiated performance
and competitiveness.
• RBV suggests that if resources are valuable, rare, inimitable, and non-substitutable (VRIN
characteristics), they can sustain an enterprise's competitive advantage
• Resources:
 physical capital resources,
 human capital resources, and
 organizational capital resources.
• Following this definition and focus, a manager’s role in RBV is to invest and acquire the right
resources at the right time
• the role of managers in DCV is to nurture the ability to create and
alter enterprise capabilities and resources.
• Alterations can be inspired by market opportunities or
entrepreneurial activities within the enterprise itself.