The paper “ Firm Resources and Sustained Competitive Advantage by Barney” is a pathetic variant of an article on the management. One significant role of this article is to bridge the existing gap between past research works in this subject area. Most of the research articles written in this subject area have laid much emphasis on the independent treatment of a firm’ s threats and opportunities. Most of them have also focused on outlining the strengths and weaknesses of a firm besides examining how the aspects are aligned to inform the choice of strategies.
Even though the SWOT analysis of business has been central to most of the recent discussions, this article delineates by focusing mainly on evaluating a firm’ s threats and opportunities within the competitive environment. Additionally, the study attempts to explicate the business surrounding factors that are crucial to an excellent and efficient performance of a firm. Essentially, the article adds that in high performing industries, the threats tend to be less than the opportunities (Porter 2010). On the same breath, the article has reinforced the previous articles’ attempts to focus on the extensive evaluation of the implications of a firm’ s business surrounding its competitive edge.
As such, the author has strategically set the research to focus less on the effects of distinctive company features on its competitive advantage. The work, therefore, has applied two assumptions to assist with easy internalization and comprehension of the situation. First, the article postulates that like firms- those within and industry- share similarities concerning the strategically relevant resources they have and the goals they pursue. Secondly, it also hypothesizes the environmental frameworks assume that any new resource heterogeneity into industry will be short-lived and may not have any profound impacts on the sustained competitive advantage of a particular company.
Such a scenario is projected to arise from the fact that most firms use highly mobile resources to implement their strategies efficiently (Pisano & Shuen, 2013, p. 509– 533). Perhaps, the greatest contribution of the article spans from the proof that the two postulations can give one a clear internalization of the effects of the environment on the firm’ s performance. However, for improved accuracy, the article applies the resource-based approach to the competitive advantage that cannot be used to explicate these assumptions explicitly.
Additionally, despite being a central point of argument for the other similar articles on this subject area, heterogeneity of firm resources are not the possible agents of competitive advantage according to the assumptions Armstrong (2012, p. 197-211). Therefore, the major contribution of the article is the successful application of the resource-based framework to replace the two assumptions in the analysis of the sources of a competitive edge for a company. The Findings and Conclusions of the ArticleThe report has established that the resource-based view of sustained competitive advantage presents a variety of impacts for the link existing between the theory of strategic management and the other areas of business.
One of the implications features in the element of sustained competitive advantage and social welfare. Such a model as the resource-based model has addressed the most pivotal issues linking social welfare with strategic management. On this, the author has found out that the initial intent of the structure-conduct-performance model in company economics was to iron out the violations of the competitive model.
Besides, it was meant to take care of the previously existing violations and re-establish the benefits of social welfare which is characteristic of perfectly competitive industries (Grant, 2011, p. 114– 135). Strategic management, to some extent, abandoned social welfare issues to establish imperfectly competitive industries so as to favor the gaining of competitiveness by a particular company within that period. At the very least, such an approach to strategic evaluation does away with any social welfare concern. Conversely, it emphasizes on the practices that a firm can adopt to reduce the social welfare.
However, in using the resource-based model, the author concludes that indeed such a type of research expeditions can be consistent with the earlier concerns of social welfare by economists.