Cohesion of RBV and Industry View for Competitive Positioning

Abstract

The discussion on competitive advantage started about half a century ago but foundational theories still lack connectivity. The resource-based view (RBV) concentrates on concepts internal to a firm and disregards the world outside, whereas the industry view neglects internal antecedents and consequences. This review paper examines complementation of leading endogenous and exogenous theories on competitiveness and combines most influential concepts on firm resources and industrial forces to a complementary picture for strategic positioning. Seminal works from Edith Penrose and Michael Porter as well as subsequent research have been investigated on connectivity and togetherness. Inside-out constructs on resources and capabilities must match outside-in constructs on industry and markets in order to achieve competitive advantage. The article includes conceptual discussions of resources, capabilities, and assets. Resources combine to capabilities that are qualified services and value chain activities. Resources can be acquired on markets, while capabilities must be developed within organizations.