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Is A Resource Based View An Innovative Perspective For Strategic Decision Making In Certain Management Sections?

2175 words - 9 pages

1. Introduction and Research Question

In the lectures of “Organization Theory” much information from different perspectives was presented about the issues how the literature defines a firm, how a firm can operate most efficiently and what has to be considered to generate sustainable success. For me personally the topic “resourced-based view of a company” was the most interesting one. Therefore, I was wondering if it is possible to apply a resource-based view as an innovative perspective to support the strategic decision making process of certain management sections. During this research proposal I am going to present my research strategy to answer this question.

2. Literature Review
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g. technological skills) in the modelling process. An exception to this common lethargy in the literature are articles from Penrose and Rubin, who renew the RBV approach and related it to the growth theory of firms. Especially Penrose focused on the RBV, which she summarized in the introduction of her work: "There are important administrative restraints on the speed of the firm's growth. Human resources required for the management of change are tied to the individual firm and so are internally scarce. Expansion requires the recruitment of more such resources. New recruits cannot become fully effective overnight. The growth process is, therefore, dynamically constrained." (Penrose, 1959)
Since the 1970s the RBV has been slowly rediscovered as an object of research. Of special note was the work of Andrews, who started to phrase the traditional concept of strategy in terms of the resource position (strengths and weaknesses) of the firm. His approach was new compared to the formal economic tools which operate on the product-market side. (Andrews, 1971)
The years from 1981 to 1991 can be named as the most intensive decade of research in the field of RBV. During this time the most significant works dealing with the RBV were published by Panzar & Willing, Wernerfelt and Barney. The “economies of scope” theory was the first broad concept mainly developed on the RBV approach. Economies of scope refers to lowering the average cost for a firm in producing two or more products since the efficiency in the use of common and recurrent resources (e.g. Know-how or indivisible physical assets) can be significantly improved. (Panzat & Willig, 1981) Wernerfelt’s paper developed simple economic tools for analyzing a firm's resource position and examined strategic options suggested on the resource-based view. In particular, he focused on the relationship between profitability and resources, as well as on ways to manage the firm's resource position over time. He justified his research focus on RBV as followed: “For the firm, resources and products are two sides of the same coin. Most products require the services of several resources and most resources can be used in several products. By specifying the size of the firm's activity in different product markets, it is possible to infer the minimum necessary resource commitments. Conversely, by specifying a resource profile for a firm, it is possible to find the optimal product-market activities.” (Wernerfelt, 1984) Barney’s first detection was the distinction between static and dynamic resources. (Barney, 1986) Moreover, he defined that sustainable competitive advantage is based on the ownership of firm-specific resources. In his opinion this ownership has to have necessary attributes, which are termed VRIN – valuable, rare, inimitable and non-substitutable. (Barney, 1991)
After this decade the peak of research in RBV was passed and new discoveries in this field were rather rare. Mentionable is on the one hand...

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