Analysis of the Effect of Resource Based View Model As A Source of Competitive Advantage on Organization Performance
- November 5, 2020
- Posted by: RSIS Team
- Categories: Economics, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue X, October 2020 | ISSN 2454–6186
Ibrahim Makina1, Judith Nabwire Oundo2
1PhD Candidate, School of Business and Economics, Kisii University, Kenya; 2University of Nairobi, Kenya
Abstract: This paper takes a theoretical examination of the concepts of Resource Based View model as a source of competitive advantage on performance of an organization. Organizations perform different depending on the resources they own. These resources include; human resources, financial resources, technological resources and skills that employees have. An organization that has unique resources and hard to be copied in the industry then it is said to have competitive advantage. The major contributor of the resource based view model was Michael Porter (1980). Resource of the organization becomes a source of competitive advantage in two ways; organization can use resources to charge higher prices in order to increase financial performance. Secondly, a firm can use its resources to lobby barriers of new entrants in the industry. The purpose of the study was to examine the applicability of the Resource Based View in different organizations. The study utilized Desktop analysis methodology through Meta analysis. From the reviewed literature it was revealed that different organizations are endowed with different resources, they can use these resources to better performance. It was further revealed that Organizations that have non-substitutable resources can use them as a source of competitive advantage. It was further revealed that RBV has a positive impact on organization performance. The study is relevant to different policy makers in decision making; it also provides foundation for further studies. In conclusion organization that strives to have their resources become hard to be copied realizes better performance it also acts as a source of competitive advantage. The study recommends that organizations should maximize resources they have and make them hard to be copied in order to realize competitive advantage.
Key words: Resource Based View model, competitive Advantage and organization performance.
