The importance of using RBV as a strategic route is to be able to work the inside-out approach. One of the important contributions of RBV is its ability to measure and identify the internal environment of the firm. RBV as the Best Strategy Route – Merits and Demerits RBV suggests that business processes that exploit valuable but common resources can only be a source of competitive equality business processes that exploit valuable and rare resources can be a source of temporary competitive advantage and business processes that exploit valuable, rare, and costly-to-imitate resources can be a source of sustained competitive advantage. However, resource uniqueness is not sufficient to achieve sustainable competitive advantage and thus the resources must also be valuable, rare, imperfectly imitable, and non-substitutable. Resource uniqueness is essential as this differentiates between the firms. The competitive value of resources can be enhanced or eliminated by changes in technology, competitor behavior, or buyer needs which an inward focus on resources will overlook. Resources are not valuable of themselves instead, they are valuable because they allow firms to perform activities that in return create advantages for them. The RBV method of analyzing a firm’s performance is focused that other vital factors that tend to be disregarded. It assumes two assumptions in examining sources of a competitive advantage which are that the firms are heterogeneous in terms of the resources they control and that resource heterogeneity can continue over a period as the resources used to implement their strategies are not easily portable across firms. The RBV emphasizes the firm’s resources as the essential elements of competitive advantage and performance. The aim of this article is to study the factors that influence a firm’s performance. Firms using RBV competes in terms of their resources and capabilities. The resource-based view (RBV) is a tool to determine strategic resources and how it affects the performance of the firm based solely on reviewing its internal environment while the external environment remains fixed.
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