RESOURCE-BASED VIEW OF THE FIRM

The resource-based view (RBV) is a method of analyzing and identifying a firm’s strategic advantages based on examining its distinct combination of assets, skills, capabilities, and intangibles as an organization. The RBV’s underlying premise is that firms differ in fundamental ways because each firm processes a unique “bundle” of resources tangible and intangibles assets and organizational capabilities to male use of those assets. Each firm develops competencies from these resources, and when developed especially well, these become the source of the firm’s competitive advantages.