The resource-based view (RBV) of strategy asserts that the competitive advantage & superior performance of an organisation are explained by the distinctiveness of its capabilities.
It is sometimes also called the ‘capabilities view’.
Proponents of RBV (such as Birger Wernerfel, Prahalad and Hamel, Barney) suggested that a firm should look within the firm to find sources of competitive advantage, instead of analysing the external competitive environment.
As per the RBV model, Tangible and Intangible resources within a firm helps the organization achieve higher performance.
Studies on the RBV framework suggest that firms should use the VRIO framework to identify and develop high potential resources.
References:
- Wernerfelt, B., 1984. A resource‐based view of the firm. Strategic management journal, 5(2), pp.171-180.
- Prahalad, C.K. and Hamel, G., 2009. The core competence of the corporation. In Knowledge and strategy (pp. 41-59). Routledge.
- Barney, J., 1991. Firm resources and sustained competitive advantage. Journal of management, 17(1), pp.99-120.
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