Reconceptualising the principles of Penrose’s (1959) theory and the resource based view of the firm-

2011 argue that after 30 years of development the rbv

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(2011) argue that after 30 years of development the RBV can now be considered a theory. From the forthcoming literature review, it appears that the most commonly agreed upon definition of a resource is that it is something that can provide a firm with either strengths or weaknesses dependant on how it is used. The RBV argues that resources are a source of competitive advantage and that they account for inter-firm performance differences (Hoopes et al. , 2003). Barney and Arikan (2001) define these resources as tangible and intangible assets which are used by the firm to create and implement strategies, while Wernerfelt (1984) defines them as anything which can provide the firm with a strength or weakness. The main assumptions of the RBV are that competing firms have different resources, that these resource differences are sustainable (Barney and Arikan, 2001) and that the main focus is on what the firm can do with these resources (Davidsson and Wiklund, 2006). Barney and Arikan (2001) argue that in order to be a source of competitive advantage the resource should be valuable, it should be hard for other firms to imitate it and there should be no other resource which can substitute it. However, more recently, it has been argued that resources do not necessarily need to be rare but rather can be quite ordinary and yet still provide a firm with competitive advantage (Warnier et al. , 2013; Frery et al. , 2015). This research will provide insight into this claim. Barney and Arikan (2001) suggest different types of resources that a firm may have, including tangible resources such as finance and physical capital and intangible resources such as human capital and relationships. Intangible resources are vital to many knowledge-based firms and due to the rise of the knowledge-based economy are central to the way in which they achieve and sustain growth (Riley and Robinson, 2011; Dal Borgo et al. , 2012). Even though these intangible resources are of vital importance, they may be more difficult to research as they are less defined (Chrisman et al. , 1998; Levitas and Chi, 2002). This research will investigate some of these issues and concentrate on the key tangible and intangible resources necessary for firm growth, thus further developing knowledge as to the applicability of the RBV to SMEs. However, as Baker and Ahmad (2010) argue, it is not always easy to find a resource which fits all of the criteria set out by Barney and Arikan (2001). Park (2010) also argues that the RBV does not explain in enough depth how certain intangible resources provide the firm with competitive advantage. Barney and Arikan (2001) argue that it is not always the case that a firm with valuable resources will gain superior performance, as valuable resources are not the only variables needed for a firm to grow, suggesting that a complete theory of firm growth requires a consideration of resources as well as other factors. The RBV literature also alludes to the importance of the combination of different resources through resource bundles that are heterogeneous across firms (Wernerfelt, 1984; Barney and Arikan,
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  • Spring '14
  • Dr.SeanStanley
  • Qualitative Research, edith penrose

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