Resource-Based View (VRIO) Operationalization
The resource-based view (RBV) explains why firms in the same industry persistently differ in performance: competitive advantage flows from internal resources and capabilities that are valuable, rare, costly to imitate, and exploited by an organization built to use them. Jay Barney's 1991 article gave the theory its rigorous form, arguing that for a resource to yield sustained advantage it must satisfy the value, rareness, inimitability, and non-substitutability conditions, and identifying history-dependence, causal ambiguity, and social complexity as the barriers that keep rivals from copying it. His 1995 practitioner article reframed the test as the VRIO framework -- value, rarity, imitability, and organization -- turning the theory into a usable diagnostic: a sequence of questions managers and researchers ask of each resource to determine whether it produces a competitive disadvantage, parity, a temporary advantage, or a sustained advantage. Operationalizing RBV means systematically auditing a firm's resources against these questions and mapping the answers to competitive implications.
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- Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120. · DOI 10.1177/014920639101700108
- Barney, J. B. (1995). Looking Inside for Competitive Advantage. Academy of Management Executive, 9(4), 49-61. · DOI 10.5465/ame.1995.9512032192
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