Elements of Organisational Resources -RBV:
The components in RBV
Human capital – the amount, breadth and depth of general skills and capabilities achieved by individuals in the organization
Intellectual capital – includes industry specific and technological knowledge
Social capital – the accumulated “goodwill” or trust the company has achieved
Physical capital – investments in tangible assets and rights
Principle:
The total “capital” of business
Issues:
Measuring non-financial capital
RBV recommends building your strategy inside out:
- Identifying and creating bundles of resources that are,
- valuable (deals with threats or opportunities or increase efficiency or effect),
- rare (less than necessary to support perfect competition),
- durable (often tacid knowledge) and
- non-substitutable to create strategic advantage.
Applications:
To identify the critical resources controlled by the company (direct/indirect)
Source Organisational Resources -RBV:
Firm Resources and Sustained. Competitive Advantage. Jay Barney. Texas A&M University