Term
| Resource-Based View (RBV) |
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Definition
| is a model of firm performance that focuses on the resources and capabilities controlled by a firm as sources of competitive advantage |
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Definition
| are the tangible and intangible assets that a firm controls that it can use to conceive and implement its strategies |
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Definition
| are a subset of a firm's resources and are defined as the tangible and intangible assets that enable a firm to take full advantage of the other resources it controls |
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Definition
| all the money, form whatever source, that firms use to conceive and implement strategies |
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Definition
| Profit that a firm made earlier in its history and invests in itself |
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Definition
| all the physical technology used in a firm |
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| the training, experience, judgment, intelligence, relationships, and insight of individual managers and workers in a firm |
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Term
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Definition
| includes a firms formal reporting structure; its formal and informal planning, controlling, and coordinating systems; its culture and reputation; and informal relations among groups within a firm and between a firm and those in its environment |
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Term
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Definition
| different firms may possess different bundles of resources and capabilities, even if they are competing in the same industry; implies that for a given business activity, some firms may be more skilled in accomplishing this activity than other firms |
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Term
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Definition
| Resource and capability differences among firms may be long lasting, because it may be very costly for firms without certain resources and capabilities to develop and acquire them |
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Definition
1. Value
2. Rarity
3. Imitability
4. Organization |
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Term
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Definition
| Do resources and capabilities enable a firm to exploit an external opportunity or neutralize an external threat? |
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Term
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Definition
| the set of business activities in which a firm engages to develop, produce, and market its products or services |
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Term
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Definition
| How many competing firms already possess particular valuable resources and capabilities? |
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Term
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Definition
| Do firms without a resource or capability face a cost disadvantage in obtaining or developing in compared to firms that already possess it? |
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Term
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Definition
| resources and capabilities that are more costly for other firms to imitate, compared to firms that already possess them |
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Term
| Sustained competitive advantage |
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Definition
| an advantage that is not competed away through strategic imitation |
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Term
| Unique Historical Conditions |
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Definition
| When a firms gains low-cost access to resources because of its place in time and space, other firms may find these resources costly to imitate |
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Term
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Definition
| When competitors cannot tell, for sure, what enables a firm to gain an advantage, that advantage may be costly to imitate |
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Term
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Definition
| When the resources and capabilities a firm uses to gain a competitive advantage involve interpersonal relationships, trust, culture, and other social resources that are costly to imitate in the short term |
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Term
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Definition
Only a source of sustained competitive advantage in a few industries, including pharmaceuticals and specialty chemicals
Can decrease, rather than increase the costs of imitation |
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Term
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Definition
| Events early in the evolution of a process have significant effects on subsequent events |
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Term
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Definition
| Is a firm organized to exploit the full competitive potential of its resources and capabilities? |
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Term
| Formal Reporting Structure |
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Definition
| a description of whom in the organization reports to whom often in the form of an organizational chart |
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Term
| Management control systems |
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Definition
| range of formal and informal mechanisms to ensure that managers are behaving in ways consistent with a firm's strategies |
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Term
| Formal Management Controls |
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Definition
| a firm's budgeting and reporting activities that keep people higher up in a firm's organizational chart informed about the actions taken by people lower down in a firm's organizational chart |
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Term
| Informal Management Controls |
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Definition
| include a firm's culture and the willingness of employees to monitor each others' behavior |
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Term
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Definition
| are the ways that firms pay employees. Create incentives for employees to behave in certain ways. |
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Term
| Complementary resources and capabilities |
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Definition
have limited ability to generate competitive advantage in isolation
e.g. formal reporting structure, management control systems, formal management controls, informal management controls, and compensation policies |
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Term
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Definition
Competitive Disadvantage
Weakness |
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Term
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Definition
Competitive parity
Strength |
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Term
| Valuable, rare, but not costly to imitate = |
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Definition
Temporary competitive advantage
Strength and distinctive competence |
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Definition
Sustained competitive advantage
Strength and sustainable distinctive competence |
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Term
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Definition
| any actions a firm takes that have the effect of reducing the level of rivalry in an industry and that also do not require firms in an industry to directly communicate or negotiate with each other |
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Term
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Definition
| firms coordinate their production and pricing decisions not by directly communication with each other, but by exchanging signals with other firms about their intent to cooperate: special case of tacit cooperation |
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Term
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Definition
| the attempt to imitate other firms by developing resources that have the same strategic effects as the resources controlled by those other firms |
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Definition
| how one firm responds to the strategic actions of competing firms |
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Term
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Definition
| the specific actions a firm takes to implement its strategies |
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