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A Resource-based View of the Firm Birger Wernerfelt (1984) Strategic Management Journal

G roup 3: Jason Franken Prasanna Karhade Hsiao-Ching Lee Marko Madunic Jennifer Shen. A Resource-based View of the Firm Birger Wernerfelt (1984) Strategic Management Journal. Objectives. Products / services. Firms. Resources.

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A Resource-based View of the Firm Birger Wernerfelt (1984) Strategic Management Journal

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  1. Group 3: Jason Franken Prasanna Karhade Hsiao-Ching Lee Marko Madunic Jennifer Shen A Resource-based View of the Firm Birger Wernerfelt (1984)Strategic Management Journal

  2. Objectives Products / services Firms Resources • Analyzes firms from resource side rather than product side, which is different from previous scholar researches. • Suggested resource position barrier and resource-product matrices.

  3. Resources and Profitability • Define resource: A firm’s resources at a given time could be defined as those assets which are tied semi-permanently to the firm. • Use Porter’s Five Forces to analyze resources which will lead to high economic returns in the long- run: • General effects : bargaining power of suppliers and buyers as well as the threat posed by substitute resources. • First mover advantages – resources position barriers • Partially analogous to entry barriers : because they also contain the mechanisms which make an advantage over another resource holder defensible. • Resource position barriers also indicate a potential for high economic returns.

  4. Resources and Profitability • The attributes of a resource that will lead to high economic returns in the long run : • Attractive resources : often self-reproducing; a firm wants to use those resources directly or indirectly to create a situation which is more difficult for others to catch up.Ex: Customer loyalty, production experience • Merger and Acquisitions : M&A provides an opportunity to trade otherwise non-marketable resources and to buy or sell resources in bundles. A resource-based set of acquisition strategies is: • Related supplementary (get more of the same of what you already have) • Related complementary (get resources that combine effectively with those you already have)

  5. Dynamic Resource Management The resource-product matrix

  6. Conclusions • Give firms another light to consider growth paths: • The theory here considered only resources of the type that are produced jointly with products. • Other types of resources have yet to be developed. • Practical difficulties involved in identifying resources (products are relatively easy to identify). • Some further research can focus on : • To what extent one in practice can combine capabilities across operating divisions. • How one can set up a structure and systems that can help a firm implement these strategies.

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