Grant, 1991 - Distinction Resources and Capabilities

4 important questions on Grant, 1991 - Distinction Resources and Capabilities

How, according to a later article of Grant (2013) can you determine what the worth is of an organisation's capabilities and resources?

You can look at the profit-earning potential of a resource or capability.

What is the Profit-Earning potential of a resource or capability dependent of, list the 3 possibilities?

  1. The potential to establish competitive advantage
  2. Sustainability of the competitive advantage
  3. Appropriability (retain added value it creates for own benefit)

What are the 3 characteristics that a resource or capability depends on in order to lead to sustainability of the competitive advantage?

  1. Durability
  2. Transferability
  3. Replicability
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What is the difference in durability between an organisation's capabilities and resources?

Capabilities have the potential to be more durable than the resources upon which they are based.

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