Resource-Based View (Rbv) Definition

The Resource-Based View is a managerial framework used to determine the strategic resources that a firm can use to achieve sustainable competitive advantage. The RBV looks at a firm’s internal resources and capabilities to identify the key drivers of competitive advantage.

The main idea behind the resource-based view is that firms differ in their ability to deploy resources and capabilities in order to create value. This view emphasizes the importance of a firm’s unique resources and capabilities in determining its competitiveness.

A key concept in the resource-based view is the concept of ‘resource heterogeneity’, which refers to the idea that different firms have different bundles of resources and capabilities. This heterogeneity means that some firms are better equipped than others to create value from their resources.

The resource-based view has been criticized for being too inward looking and for overemphasizing the role of internal factors in determining a firm’s competitiveness. However, it remains a popular framework for analyzing firms’ competitive advantages.