a resourced based view of entreprenuership
TRANSCRIPT
RESOURCE-BASED VIEW OF ENTREPRENEURSHIP
Fahim akhtar
Resource-based view
The resource-based view (RBV) as a basis for the competitive advantage of a firm lies primarily in the application of a bundle of valuable tangible or intangible resources at the firm's disposal
Competitive advantage
A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.
Resource
Features of resources• Valuable. Because they exploit same
environment opportunity • Rare. In a sense that there are not enough for
all competitors. • Inimitable. So that competitors may not
merely copy them • Non substitutable with other sources
Formula within theory• Buy or acquire cheaply ----- transform or deploy ( the
resources)• Implement the strategy -------sell dearly
Types of resources • Financial resources • Physical resources• Human resources• Organizational resources• Technological resources• Reputational resources
Financial resources
• Credit held • Capacity to borrow • Ability to liquidate
Financial resources • Are financial resources valuable ?• Are financial resources rare?• Are financial resources imperfectly imitable?• Are financial resources non substitutable with
other resources?
Physical resources
Human resources
• Knowledge• Training • Experience• Judgment, insight, creativity, vision• Relationship capital
Organizational resources
• Firms structure, routine and systems
Technological resources
• Process, system and physical transformation• Lab, R & D facilities, testing and quality control
Reputational resources• Quality of management• Use of corporate resources• Firm’s financial soundness• Firm’s value as innovation• Quality of product and services• Innovativeness• The ability to attract, retain top people
CA stands for competitive advantage
Advantages of resourced based theory
• Neo- Classical Theory• Industrial organization theory• The transaction cost approach
Neo- Classical TheoryNeo-classical theory deals with the human factor.
Elton Mayo pioneered the human relations to improve levels of productivity and satisfaction
Industrial Organization theory• The Theory of Industrial Organization is the first primary
text to treat the new industrial organization• Modern theory of monopoly, addressing single product
and multi product pricing, static and inter temporal price discrimination, quality choice, reputation, and vertical restraints
The transaction cost approachThe transaction cost approach to the theory of
the firm was created by Ronald Coase. Transaction cost refers to the cost of providing for some good or service through the market rather than having it provided from within the firm.