The Resource Based View and Sustainable Competitive Advantage: the Case of Financial Service Firm

9370 WordsMar 3, 201338 Pages
The resource-based view and sustainable competitive advantage: the case of a financial services firm Val Clulow School of Business, Swinburne University of Technology, Hawthorn, Australia Julie Gerstman School of Business, Swinburne University of Technology, Hawthorn, Australia Carol Barry School of Business, Swinburne University of Technology, Hawthorn, Australia Keywords Resources, Competitive advantage, Financial services, Intangible assets Introduction The study of sustainable competitive advantage (SCA) within particular service industries was encouraged as far back as 1993. Bharadwaj et al. (1993, p. 83) proposed a conceptual model which attempted to integrate SCA issues from the fields of marketing, strategic management…show more content…
The paper concludes with a discussion of the implications of the results for Fahy's (2000) model. Resource-based view of the firm The RBV of the firm is a theory that has been explored in the academic literature as a means of explaining competitive advantage and, in turn, superior performance amongst firms. According to Barney (1991, p. 102), ``a firm is said to have a competitive advantage when it is implementing a value-creating strategy not simultaneously being implemented by any current or potential competitors''. This competitive advantage is sustainable if ``the advantage resists erosion by competitor behaviour'' (Bharadwaj et al., 1993, p. 84). The RBV was originally developed by Wernerfelt (1984) as an attempt to build a consistent foundation for the theory of business policy. Over the ensuing decade a number of academics developed this foundation further and a substantial body of literature now exists in which ``. . . many central aspects of strategic reasoning have been reinterpreted in light of a resourcebased perspective'' (Wernerfelt, 1995, p. 172). The development is far from complete, however, and there is a need ``. . . to map the space of resources in more detail'' since ``. . . `resources' remain an amorphous heap'' (Wernerfelt, 1995, p. 172). Fahy's (2000, p. 99) model (Figure 1) demonstrates the relationship between ``. . . the firm's key
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