Resources from the Environment

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Resources from the Environment Every organization uses multiple resources for the achievement of their goals. Organization seeks most of the resources from the environment like people, money, technology, equipment etc. Barney (1991) says that firm resources include all assets, capabilities, organizational processes, firm's attributes, information and knowledge controlled by a firm that enables the firm to conceive and implement strategies to improve its efficiency and effectiveness. Resource can be defined by approach that is more technical. Popular approach of resource-based review is followed to identify the resources of the firm. Many theorists are of the view that resources are something, which gives the firm competitive advantage over the other firm which can enhance the performance of the firm. According to this approach, resource normally fulfills the following criteria. Valuable A resource must give the firm a value creating strategy by either offsetting its competitors or by eradicating its weakness. Rare Resource must also be rare by definition. It shows that price of the firm must give the future expected above average returns. In-imitable If only single firm controls a resource then it means that specific firm earns competitive advantage over the other firms. This advantage is sustainable if the competitors are not able to duplicate this asset. Non-substitutable An equally important quality for the resource is that it must be
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