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Internal Resources

Internal Resources. The Value Chain. Adapted from Exhibit 3.1 The Value Chain: Primary and Support Activities Source: Adapted with permission of The Free Press, a division of Simon & Schuster, Inc., from Competitive Advantage:

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Internal Resources

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  1. Internal Resources

  2. The Value Chain Adapted from Exhibit 3.1 The Value Chain: Primary and Support Activities Source: Adapted with permission of The Free Press, a division of Simon & Schuster, Inc., from Competitive Advantage: Creating and Sustaining Superior Performance by Michael E. Porter.

  3. Resource-Based View of the Firm • Basic Assumption • Types of resources • Tangible resources • Intangible resources • Organizational capabilities • Organizational competencies • Dynamic Capabilities Firms consist of a heterogeneous resource base

  4. Intangible Resources • Human • Innovation and creativity • Reputation

  5. From Firm Resources to Sustainable Competitive Advantages Is the resource or capability… Valuable Rare Difficult to imitate Difficult to substitute Adapted from Exhibit 3.7 Four Criteria for Assessing Sustainability of Resources and Capabilities

  6. Criteria for Sustainable Competitive Advantage and Strategic Implications Exhibit 3.8 Criteria for Sustainable Competitive Advantage and Strategic Implications Source; Adapted from J. Barney, “Firm Resources a Sustained Competitive Advantage, ‘ Journal of Management 17 (1991), pp. 99-120.

  7. Management preferences External Environment Organization Strategy Resources Diamond – E Model

  8. Discussion?

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