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Resource Based View

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The purpose of this abstract is to summarize and evaluate the paper „Is the resource-based “view” a useful perspective for strategic management research “ written by RICHARD L. PRIEM and JOHN E. BUTLER.
I. Summarization
The authors try to clarify the fundamental theoretical statements of the resource based view (RBV) and specify its fundamental contributions to knowledge.
PRIEM and BUTLER try to answer two basic questions:
1. Is the foundational and unembellished RBV actually a theory?
2. Is the RBV likely to be useful for building understanding in strategic management?

In order to approach these questions the authors firstly evaluate the diffusion of the RBV throughout strategy literature. In the following step …show more content…

(3) Showing “nomic necessity”. If characterizations of the elementary RBV statement could be conceptualized leading to a synthetic statement this reformulation could be examined for this last criterion. Nomic necessity means that “the appearance of one phenomenon is linked with another”.
Another point PRIEM and BUTLER mention , is that if the formulations were more synthetic then value instead of rarity would be the fundamental element that determines the extent of competitive advantage. The authors argue that if one firm generates more value than another in the same industry it must have at least one rare resource but if one firm has a rare resource it doesn´t mean it will generate more value. Carrying on this argument, the authors observe the definition of a valuable resource in the RBV: “[…]when they exploit opportunities or neutralize threats in a firm´s environment”. This definition shows that it is the environment that determines the level of value through its opportunities and threats. Opportunities and threats, however, are exogenous, they are sources outside the resource- based model. As an effect, the RBV holds customer and product factors constant, makes the implicit assumption that product markets are immobile and inhomogeneous. The environment-based model on the other hand has the underlying assumptions that the named factors are mobile and homogenous.
2. Is

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