RBV – Resource Based View

Purpose and benefits of RBV

[linkunit]The purpose of the above resource based view of the firms is to attain competitive advantage over the competitors through capitalizing upon internal resources and competencies and their relative strengths. Though achieving a competitive advantage is a difficult job but sustaining the competitive advantage is more challenging than attaining it. The resources and capabilities need to be continuously upgraded and improved to ensure sustainable competitive advantage over the competitors and new entrants in the long run.[large]

The discussion reveals that resource based view of the firm enables it to put a barrier on the imitation of the resources and competencies. It also enables the firm to continue the process of developing future resources and capabilities which bestows to remain a market leader for indefinite period.

Criticism on RBV

Like other theories RBV theory is also under criticism by some professionals. They are of the view that RBV unnecessarily compels the management to keep focus on internal resources and role of product markets often ignored. Such focus and ignorance can not result in sustainable competitive advantage. Critics are further of the view that RBV theory has limited and narrow implications. The practicability of the theory is also criticized that it in fact impossible to find a resource which fulfill the criteria as described in the process of Resource based view.