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Andrey Mazkun, United Kingdom
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Limitations of Resource Based View of the Firm
What are the limitations of RBV? Can anyone clearly explain it? Thanks.
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Christos Papadimas
Manager, Canada
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Limitations of RBV
One limitation of the RBV theory is based on the inability to compile an empirical study to measure performance. Due to the heterogeneity of the companies, it is hard to impossible to compile a homogeneous sample.
Furthermore, the RBV does not consider the demand side of the market. A company might have the resources and capabilities to produce competitively but who is the customer/consumer?
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Warren Miller, CPA, CFA
Strategy Consultant, United States
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Limitation of RBV
The limitation of the RBV is that it's applied on an entity-specific basis. Therefore, it is not generalizable.
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Maryam Bidmeshgipour
Student (Other), Malaysia
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Limitation of RBV
I agree with Warren on this limitation of RBV. As a result there is still no generalized tool that is able to measure it.
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Warren Miller, CPA, CFA
Strategy Consultant, United States
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Limitations of RBV
I respectfully disagree, Maryam. There is a tool that can measure capabilities, whose development is central to deploying the RBV. That tool is Jay Barney's VRINO (valuable, rare, inimitable, non-substitutable, organizationally aligned) framework.
Asking five questions (one for each letter in the acronym) will help gauge the durability of a capability and also its staying power against other capabilities in the competitive domain (industry or strategic group). I use it all the time, and it is powerful.
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Emad Hassan
consultant, Egypt
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Limitation of RBV
The main limitation, from my perspective, is that ...
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Warren Miller, CPA, CFA
Strategy Consultant, United States
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Limitations of RBV
Emad, I'm not sure about what you mean with "endog...
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Emad Hassan
consultant, Egypt
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Endogenous Value Perspective
Warren, thanks for your comment. What I meant by e...
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J Iqbal
Professor, Pakistan
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Generic and Specific Limitations of RBV
All those factors that inhibit implementation or r...
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Michael Park
Strategy Consultant, United States
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Limitations of RBV
Hi, this discussion, like many things on this site...
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Warren Miller, CPA, CFA
Strategy Consultant, United States
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Limitations of RBV
@Michael: please clarify what you mean by "directi...
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