RBV is an explanation of performance differences between firms that assumes high performing are made up of bundles of resources that give them an advantage in the marketplace. There are few merits of RBV as a strategy route in the development of a firm’s strategy. Different organizations are having different cultures and each leaders and entrepreneurs have their own perspectives and views. The rationales of a firm to choose Resource based view as a strategy in developing a firm’s strategy are probably due to organization cullture, leadership and entrepreneurship. In conclusion, RBV fits with Porter’s industry analysis at the same time can help a firm to achieve a sustainable competitive advantage. Porter’s industry analysis and activity based view that are focus on external factors as a profitability source can be used to complement those insufficient. It is insufficient that a firm just specifically focuses on RBV to achieve SCA. However, there are some critiques on Resource Based View (RBV) as a strategy route in the development of a firm’s strategy. According to Jay Barney (1991), resources need to be valuable, rare, imperfectly mobile and non-substitutable in order to achieve SCA. On the other hand, in order to survive in this competitive world, a firm needs to fully prepare itself to achieve sustainable competitive advantage (SCA), which means having a superior performance in a longer term compared to other rivals. RBV also concerns in value creation in order to compete with others. Competitive advantage arises when a firm has a lower cost structure, products differentiation and niche markets. Capabilities of the firm in utilizing the resources have a big impact on how a firm will be able to stand out among other competitors. Resources can also be divided into tangible resources and intangible resources. Both of them will together form a competency that can create a competitive advantage. It highlights the importance of firm’s resources and capabilities. Resource based view (RBV) focuses on the internal factors that contribute to a firm’s growth and performance.
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