Week 4 Chapter 3 Leveraging Resources and Capabilities

Week 4 Chapter 3 Leveraging Resources and Capabilities -...

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Resource-Based View Ricardo and Ricardian Rents: Premise:  Firm’s resources and capabilities are  the primary drivers of competitive advantage  and economic performance
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Two Critical Assumptions of RBV Resource Heterogeneity: Different firms have different resources Resource Immobility: It may be costly for firms without certain resources or  competencies to develop them Some resources or competencies may not spread,  move, or transfer easily
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Resource Types TANGIBLE RESOURCES AND CAPABILITIES EXAMPLES Financial § Ability to generate internal funds § Ability to raise external capital Physical § Location of plants, offices, and equipment § Access to raw materials and distribution channels Technological § Possession of patents, trademarks, and copyrights Organizational § Formal planning, command, and control systems
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Week 4 Chapter 3 Leveraging Resources and Capabilities -...

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