Essays on Firm Resources and Sustained Competitive Advantage Literature review

Download full paperFile format: .doc, available for editing

The paper   “ Firm Resources and Sustained Competitive Advantage” is a spectacular example of the literature review on business. The article contribution is noticeable because it shows the relationship between sustained competitive advantage and firm resources. According to the study, sustained competitive advantage cannot be achieved if the firm’ s resources are perfectly mobile and homogenous. However, this is possible of the firm has a first-mover advantage, whereby a temporary competitive advantage can be realized. The article offers addresses a number of key assumptions and concepts with the objective of contrasting and comparing resource-based view with traditional strategy theory.

In this case, the traditional theory assumption; homogeneity amongst firms as well as high resources mobility are relaxed by the resource-based view. According to Barney (1991, p. 99), companies get sustained competitive advantage through strategies implementation, especially those that exploit the firm’ s internal strengths by capitalizing on external opportunities. The article helps one understand the firm’ s environmental impact on its competitive position, especially with regard to how the competitive position of the firm is impacted by idiosyncratic attributes of the firm. The two simplifying assumptions that have been adopted in the study have successfully provided an understanding of how the firm’ s environment impact performance.

The article provides a number of definitions (sustained competitive advantage, form resources, and competitive advantage) so as to eliminate any possible confusion in view of this, firm resources have been defined by Barney (1991, p. 101) as the strengths that can be utilized by the firm to formulate and implement strategies. Firm resources have been categorized into three; human capital resources (intelligence, experience, training, employees), physical capital resources (geographic location of the firm, equipment and plant, physical technology, raw materials accessibility, and organization capital resources (structure of formal reporting, systems for planning, coordinating and controlling, informal relations).


Alon, I., 2003. Chinese Culture, Organisational Behavior, and International Business Management. Santa Barbara: Greenwood Publishing Group.

Arrighetti, A., Landini, F. & Lasagni, A., 2014. Intangible assets and firms heterogeneity: evidence from Italy. Research Policy,vol. 43, no. 1, pp.202–13.

Barney, J., 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management, vol. 17, no. 1, pp. 99-120.

Bounfour, A. & Miyagawa, T., 2014. Intangibles, Market Failure and Innovation Performance. New York: Springer.

Buckley, P.J. & Ghauri, P.N., 2015. International Business Strategy: Theory and Practice. New York: Routledge.

Chou, S.-Y., Trappey, A.J.C., Pokojski, J. & Smith, S., 2009. Global Perspective for Competitive Enterprise, Economy and Ecology: Proceedings of the 16th ISPE International Conference on Concurrent Engineering. New York: Springer Science & Business Media.

Collings, D.G. & Wood, G., 2009. Human Resource Management: A Critical Approach. New York: Routledge.

Ferreira, M.P. & Serra, F.A.R., 2010. Make or buy in a mature industry? models of client - supplier relationships under TCT and RBV perspectives. [Online] Available at: [Accessed 18 January 2016].

Garcia, L., Rodriguez‐Castellanos, A. & Barrutia‐Guenaga, J., 2013. Proceedings of the 5th European Conference on Intellectual Capital: ECIC 2013. Oxford: Academic Conferences Limited.

Greitemeyer, J., 2002. Business Intelligence: An Analysis based on the Resource-based View.

Habbershon, T.G. & Williams, M.L., 1999. A Resource-Based Framework for Assessing the Strategic Advantages of Family Firms. Family Business Review, vol. 12, no. 1, pp.1-25.

Hamel, G. & Prahalad, C.K., 1989. Strategic Intent. Harvard Business Review, pp.63-76.

Harrison, R.T. & Leitch, C.M., 2008. Entrepreneurial Learning: Conceptual Frameworks and Applications. New York: Routledge.

Lucas, H.C., 2003. Strategies for Electronic Commerce and the Internet. Cambridge, MA : MIT Press.

Madhani, P.M., 2009. Resource Based View (RBV) of Competitive Advantages: Importance, Issues and Implications. KHOJ Journal of Indian Management Research and Practices, vol. 1, no. 2, pp.2-12.

McIvor, R., 2010. Global Services Outsourcing. Cambridge : Cambridge University Press.

Miller, D., 2003. An asymmetry-based view of advantage: towards an attainable sustainability. Strategic Management Journal, vol. 24, no. 10, pp.961–76.

Pettigrew, A.M., Thomas, H. & Whittington, R., 2001. Handbook of Strategy and Management. London: SAGE.

Poole, M.S. & Ven, A.H.V.d., 2004. Handbook of Organisational Change and Innovation. Oxford : Oxford University Press.

Steiner, F., 2006. Formation and Early Growth of Business Webs: Modular Product Systems in Network Markets. New York: Springer Science & Business Media.

Vergne, J.-P. & Durand, R., 2010. The Missing Link Between the Theory and Empirics of Path Dependence: Conceptual Clarification, Testability Issue, and Methodological Implications. Journal of Management Studies, vol. 47, no. 4, pp.736-59.

Wright, P.M., McMahan, G.C. & McWilliams, A., 1993. Human Resources and Sustained Competitive Advantage: A Resource-Based Perspective. Research Paper. Los Angeles, CA : CEO PUBLICATION University of Southern California.

Download full paperFile format: .doc, available for editing
Contact Us