The modern resource-based view
Processes that use a firm’s internal and external resources – specifically to integrate, reconfigure, gain and release resources – to match and even create market change.(Eisendardt and Martin 2000: 1107).
- Base level: This is the operational level. It comprises ordinary, routine capabilities, such as administration and basic governance, that allow an organisation to pursue a given production program or defined set of activities.
- Dynamic layer: These dynamic capabilities can be divided into microfoundations and higher order capabilities (Teece 2007). Microfoundations involve the adjustment and recombination of a firm’s existing ordinary capabilities as well as the development of new ones. Higher order dynamic capabilities refers to new product development, expansion into new sales regions, and the assignment of product mandates across divisions in large companies, and other actions that constitute astute managerial decision making under uncertainty.
Your taskThe resource-based view focuses on the internal resource (including employees) that can provide competitive advantage to organisations, but it has been criticised for paying insufficient attention to the external environment.To what extent do you agree with this view?
ReferencesBarney, J. and Felin, T. (2013) ‘What are Microfoundations?’. Academy of Management Perspectives 17 (2), 138-155Basiouni, A., Hafizi, A., Akhtar, N., and Alojairi, A. (2019) ‘Assessing Canadian Business IT Capabilities for Online Selling Adoption: A Net-Enabled Business Innovation Cycle (NEBIC) Perspective’. Sustainability. 11 (13)Becker, B., and Gerhart, B. (1996) ‘The Impact of Human Resource Management on Organisational Performance: Progress and Prospects’. Academy of Management Journal 39 (4), 779-801Ludwig, G., and Pemberton, J. (2011) ‘A Managerial Perspective of Dynamic Capabilities in Emerging Markets: The Case of the Russian Steel Industry’. Journal of East European Management Studies 16 (3), 215–236
International Human Resources Management: An Introduction
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