Resource-Based View: the strategic value of resources

In today’s competitive landscape, many companies strive to stand out through innovative strategies and aggressive market approaches. However, the Resource-Based View (RBV) shifts the focus inward, asserting that sustainable competitive advantage is based on the unique and valuable resources a company possesses.

What does RBV mean?

The Resource-Based View is a strategic theory that places internal resources—whether tangible or intangible—at the heart of business success. According to this approach, not all resources are equal: only those that meet specific criteria can lead to a competitive advantage.

Characteristics of strategic resources according to RBV:

• Value (Valuable): The resource must add value to the organization, helping it respond to market opportunities or counter threats.

• Rarity (Rare): It must be a resource that is uncommon among competitors.

• Inimitability (Inimitable): Difficult to copy or replicate, often due to historical factors, social complexity, or causal ambiguity.

• Organizational sustainability (Organized to capture value): The organization must be structured to fully exploit the value of the resource.

These criteria are known as the VRIO framework (Value, Rarity, Inimitability, Organization), which forms the basis of the RBV approach.

Practical example of RBV

A tech company may identify its research and development team, composed of artificial intelligence (AI) experts, as a strategic resource. If this team:

• Creates innovative AI solutions (value),

• Includes specialists with rare market skills (rarity),

• Has processes and knowledge that are difficult to replicate (inimitability),

• The company has the structures and investments to leverage the team (organization).

In this case, the R&D team becomes a strategic asset that ensures a sustainable competitive advantage.

How to apply the RBV approach to your company

• Resource audit:
  Identify all the company’s resources, including:

  • Tangible resources (machinery, infrastructure, capital),

  • Intangible resources (brand, patents, corporate culture),

  • Organizational capabilities (skills, processes).

• Evaluate using the VRIO model:
  Analyze each resource using the four criteria.
  A resource that only satisfies the first two criteria (Value and Rarity) provides a temporary competitive advantage.
  Only resources that meet all four VRIO criteria ensure a sustainable competitive advantage.

• Plan strategic utilization:
  Allocate resources to protect and develop your strategic assets.
  Create barriers to make them even harder to imitate, such as investing in patents or exclusive partnerships.

• Leverage the advantage:
  Use these resources to enter new markets, improve products, or increase efficiency.

Difference from traditional approaches

The RBV approach stands out because it looks inward at the company, rather than focusing solely on external factors like the market and competitors. This makes it particularly useful in dynamic contexts, where the external environment changes rapidly, but internal resources can provide a stable and controllable foundation for success.

Limitations and considerations

While powerful, the RBV approach has some limitations:

• Internal focus: It somewhat overlooks the importance of market dynamics.

• Complexity in evaluation: Identifying and measuring inimitability or value can be subjective.

• Resource maintenance: Even strategic resources require continuous investment to remain relevant.

Conclusion

The Resource-Based View offers a unique strategic perspective: focusing on internal resources to build a sustainable competitive advantage. With tools like the VRIO model, managers can identify and enhance their most valuable assets.

Ask yourself: what are the resources that make your company unique? And are you doing enough to protect and maximize them?