Priem & Butler - Is the RBV a useful perspective for strategic management research?

7 important questions on Priem & Butler - Is the RBV a useful perspective for strategic management research?

According to P&B the RBV includes implicit simplifying assumptions. Which 3?

1 Resource value is determined from a source exogenous (van buiten af) to the RBV
2 Product demand remains external to the RBV
3 It simplifies strategic analysis with an implicit assumption of homogeneous and immbole product markets on the demand side.

Why does the RBV remains a black box? (P&B)

Because it does not define how value is created and the RBV has its boundaries in dynamic environment.

What are, according to P&B, the 4 challenges reagrding to the RBV?

1 Formalizing the RBV: statements must be systematically related, thereby possessing internal consistency
2 Answering the how questions: how can the resource be obtained?
3 Incorporating the temporal component: RBV explicitly aknowledges a firm's history as an important antecedent to current capabilities and opportunities
3 Integrating the RBV with demand heterogeneity models
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The defintion of Barney of competitive advantage (a firm implementing a value creating strategy not simultaneously being implemented by any current/potential competitors) a an analytical statements. What is the problem with this according to P&B?

An analystical statement it's true by definition, indicating that this elemental statement of RBV is not a lawlike generalization. This statement of competitive advantage is not amenable (vatbaar) to empirical tests.

Is the RBV suitable for strategic research according to P&B? (5)

1 The RBV does not meet the operational validity criterion, because it only advises to obtain rare/valuable resources and that those should be inimitable/nonsubstitutable. Criteria for value remain in an exogenous black box.
2 Boundaries of RBV: little effort to establish contexts for the RBV
3 All-inclusive resources: the definition of the resource makes it difficult to measure/manipualte the resource.
4 Much of the research has been static and a typical sequence of arguments has been used.

Describe the conclusion of P&B regarding the RBV (5)

1 Conceptual work remains before the RBV can meet the requirements of a theoretical structure
2 Many implicit assumptions about product markets
3 Fundamental value variable is exogeneous
4 Inclusive definitions of resources make it difficult to establish contextual and prescriptive boundaries
5 Static, cross-sectional approaches to the RBV development may result in causal hows and whys remaining in a black box

What are the 4 recommendation for the RBV according to P&B?

1 Formalizing the RBV: more systematical relatedness and internal consistence
2 Answer the how questions: how can resources be obtained? Etc.
3 Incorporate the temporal component: interaction that occur over time between a firm's resources and its competitive advantage
4 Integrate the RBV with demand heterogeneity models: find a match between environmental conditions and organizational capabilities and resources (internal & external)

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