STRATEGIC MANAGEMENT Summary Report
STRATEGIC MANAGEMENT
The Resource – Based View of the Firm and Innovation: Identification of Critical Linkages
(Summary Report)
TIFFINY CHRISTINA RUEL
BB12160888
SUMMARY REPORT
This article is about the resources based view (RBV) of the firm an innovation of critical linkages by Konstantinos C. Kostopoulos, Yiannis E. Spanos, and Gregory P. Prastacos. This paper is analyses the interrelationship between RBV and organizational innovation. They researchers mentioned that the importance of this RVB of strategic management is manifest in its rapid diffusion throughout the strategy literature. Within the small scope, this article focus on the aspect of RBV that determine the firm’s ability to innovate.
On the RBV theoretical background, the RBV of the firm’s was highly focused on the firm’s black box. Theoretically, the RBV is important to answer the question of why firms are different and how firms reach and maintain competitive advantage by using their resources. For instance, some researches like Selznick’s (1957) studied about the idea of an organization’s ‘distinctive competence’ is completely related to RBV. Other than that, Chandler’s (1962) studied about the ‘structure follows strategy’ and Andrews’s (1971) about the proposal of an internal appraisal of strengths and weaknesses could led to the identification of distinctive competencies. But, the idea was pioneered by Penrose in 1959. Penrose claimed that it is the heterogeneity which is basis on RBV, not the homogeneity, of the productive services available from its resources that give each firm its unique character. This study the broadly recognized by Wernerfelt (1984) which suggested that evaluating firms in terms of their resources could lead to insights that differ from traditional perspectives.
Barney’s (1991) stated a more concrete and comprehensive framework to identify the requirement characteristics of firm resources whether it is valuable, rare, inimitable, and non-substitutable in
The Resource – Based View of the Firm and Innovation: Identification of Critical Linkages
(Summary Report)
TIFFINY CHRISTINA RUEL
BB12160888
SUMMARY REPORT
This article is about the resources based view (RBV) of the firm an innovation of critical linkages by Konstantinos C. Kostopoulos, Yiannis E. Spanos, and Gregory P. Prastacos. This paper is analyses the interrelationship between RBV and organizational innovation. They researchers mentioned that the importance of this RVB of strategic management is manifest in its rapid diffusion throughout the strategy literature. Within the small scope, this article focus on the aspect of RBV that determine the firm’s ability to innovate.
On the RBV theoretical background, the RBV of the firm’s was highly focused on the firm’s black box. Theoretically, the RBV is important to answer the question of why firms are different and how firms reach and maintain competitive advantage by using their resources. For instance, some researches like Selznick’s (1957) studied about the idea of an organization’s ‘distinctive competence’ is completely related to RBV. Other than that, Chandler’s (1962) studied about the ‘structure follows strategy’ and Andrews’s (1971) about the proposal of an internal appraisal of strengths and weaknesses could led to the identification of distinctive competencies. But, the idea was pioneered by Penrose in 1959. Penrose claimed that it is the heterogeneity which is basis on RBV, not the homogeneity, of the productive services available from its resources that give each firm its unique character. This study the broadly recognized by Wernerfelt (1984) which suggested that evaluating firms in terms of their resources could lead to insights that differ from traditional perspectives.
Barney’s (1991) stated a more concrete and comprehensive framework to identify the requirement characteristics of firm resources whether it is valuable, rare, inimitable, and non-substitutable in