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

1
A Resource-based View of the Firm Birger
Wernerfelt (1984) Strategic Management Journal

• Group 3
• Jason Franken
• Prasanna Karhade
• Hsiao-Ching Lee
• Marko Madunic
• Jennifer Shen

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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 firms resources at a given
  time could be defined as those assets which are
  tied semi-permanently to the firm.
• Use Porters 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.

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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 MA 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)

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Dynamic Resource Management

• The resource-product matrix

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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.