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The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation

The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation Robert M. Grant trategy has been defined as "the match an organization makes between its internal resources and skills. . . and S the opportunities and risks created by its external envi­ ronment?" During the 1980s, the principal developments in strategy analysis focussed upon the link between strategy and the external environment. Prominent examples of this focus are Michael Porter's analysis of industry structure and competitive positioning and the empirical studies undertaken by the PIMS project. 2 By contrast, the link between strategy and the firm's resources and skills has suffered compar­ ative neglect. Most research into the strategic implications of the firm's internal environment has been concerned with issues of strategy imple­ mentation and analysis of the organizational processes through which strategies emerge. Recently there has been a resurgence of interest in the role of the firm's resources as the foundation for firm strategy. This interest reflects dissatis­ faction with the static, equilibrium framework of industrial organization economics that has dominated much contemporary thinking about business strategy and has renewed interest in older theories of profit and competition associated with the writings of David Ricardo, Joseph Schumpeter, and http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png California Management Review SAGE

The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation

California Management Review , Volume 33 (3): 22 – Apr 1, 1991

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References (39)

Publisher
SAGE
Copyright
© 1991 The Regents of the University of California
ISSN
0008-1256
eISSN
2162-8564
DOI
10.2307/41166664
Publisher site
See Article on Publisher Site

Abstract

The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation Robert M. Grant trategy has been defined as "the match an organization makes between its internal resources and skills. . . and S the opportunities and risks created by its external envi­ ronment?" During the 1980s, the principal developments in strategy analysis focussed upon the link between strategy and the external environment. Prominent examples of this focus are Michael Porter's analysis of industry structure and competitive positioning and the empirical studies undertaken by the PIMS project. 2 By contrast, the link between strategy and the firm's resources and skills has suffered compar­ ative neglect. Most research into the strategic implications of the firm's internal environment has been concerned with issues of strategy imple­ mentation and analysis of the organizational processes through which strategies emerge. Recently there has been a resurgence of interest in the role of the firm's resources as the foundation for firm strategy. This interest reflects dissatis­ faction with the static, equilibrium framework of industrial organization economics that has dominated much contemporary thinking about business strategy and has renewed interest in older theories of profit and competition associated with the writings of David Ricardo, Joseph Schumpeter, and

Journal

California Management ReviewSAGE

Published: Apr 1, 1991

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