Describe the Resource Based View (RBV). Do you agree or disagree with RBV theorists that internal resources are more important than external factors for a firm in achieving and sustaining competitive advantage? Explain your and their position.
Answer:
Resource Based View (RBV)
The resource-based view describes that in the field of strategic management, the key aspects and drivers for companies’ competitive advantage and high performance are mainly related to the dimensions of their resource and capabilities, which are priceless and high-priced-to-imitate. RBV theorists claims that internal resources are more important than external factors for a firm in achieving and sustaining competitive advantage (Harrison & John, 2013). I don’t agree with this as a firm’s resources and capabilities may help it in attaining competitive advantage, but to sustain competitive advantage it is crucial to consider external factors such as social, economic, political, technological, legal, and environmental aspects. With increasing globalization and firms operating in an international business environment it is critical for firms to keep analyzing and adapting external factors and business environment trends. Without considering external factors, it is not possible for firms to sustain their competitive advantage in long run as well as attain a global position.
Reference
Harrison, J. & John, C. (2013). Foundations in Strategic Management. 6th ed. USA: Cengage Learning.
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