Internal Organizati. on and the Resource-Based View (RBV)

Vocabulary flashcards covering internal organization concepts, RBV, resource orchestration, value chain, capabilities, and real-world examples.

Resource-based View (RBV)

A theory that a firm’s performance and competitive advantage come from its unique bundle of valuable, rare, hard-to-imitate resources and capabilities, rather than solely from external market conditions.

Resource Orchestration Theory

An extension of RBV emphasizing the coordinated acquisition, bundling, and leveraging of resources to create a competitive advantage adapted to the firm’s context.

Capabilites

The firm’s routines and processes that enable the effective deployment of resources to perform activities and generate value.

Core Competency

The 3–5 key capabilities or resources that differentiate a firm, create unique value for customers, and are difficult for rivals to imitate.

Tangible Resources

Observable, measurable assets such as cash, facilities, equipment, and technology that can be copied or transferred.

Intangible Resources

Non-physical assets like brand, reputation, culture, and know-how that are harder to imitate and accumulate over time.

Value Chain Analysis

Porter’s framework for analyzing internal activities (primary and support) to identify sources of value, cost advantage, and potential core competencies.

Primary Activities

Inbound logistics, operations, outbound logistics, marketing and sales, and service; activities that directly create value.

Support Activities

Procurement, technology development, human resource management, and firm infrastructure; enable and support primary activities.

Inbound Logistics

Receiving, storing, and handling inputs for production.

Operations

Processes that transform inputs into the final product.

Outbound Logistics

Activities that deliver finished goods to customers, including distribution and transportation.

Marketing and Sales

Activities that promote and sell products, including branding and channel strategy.

Service

After-sale activities that maintain and enhance product value, such as support and repairs.

Procurement

Sourcing and purchasing inputs, components, and resources.

Technology Development

R&D and technology infrastructure that support product and process improvements.

Human Resource Management

Recruitment, training, development, and management of personnel.

Firm Infrastructure

Organizational structure, planning, finance, governance, and control systems that enable the firm.

Competitive Advantage

Superior performance relative to rivals due to unique resources and capabilities; can be temporary or sustained.

Sustained Competitive Advantage

A durable advantage that persists over time because rivals cannot easily imitate or substitute it.

VREN Framework

Valuable, Rare, Inimitable, and Non-substitutable; criteria to evaluate core competencies and potential competitive advantage.

Valuable

A resource or capability that creates value or reduces cost, enabling exploitation of opportunities or neutralizing threats.

Rare

A resource or capability that few competitors possess.

Inimitable

Hard to copy due to complexity, history, or social dynamics.

Non-substitutable

Cannot be easily replaced by an alternative that provides the same benefit.

Ambiguous Cause

Unclear link between a resource and its performance impact, making imitation difficult.

Social Complexity

Interpersonal relationships and organizational culture that create unique customer ties and are hard to replicate.

Strategic Fit

Alignment between a firm’s resources and its strategy; resources should support the business model rather than simply accumulating assets.