Relevance of RBV When Facing Low Cost Competition

Resource-based View
Knowledge Center


Warren, Australia

Relevance of RBV When Facing Low Cost Competition

Is the RBV still relevant given the rise of competition from low wage countries (ie China)?
New competitors are not imitating incumbents resources so much as redefining them.


Mohan Fonseka
Student (University), China

RBV is Relevant Also in the Face of Low Cost Competition

Why not. Cost leadership is one thing. But innovation capability, technology and HR, financing capabilities are also relevant sources of capabilities.
These capabilities help to gain more advantage over cost leadership alone. China is still a regulated economy and financing activities are not the same for all firms. Regulatory bodies such as China security regulatory commission create guidelines for the firms' eligibility for financing.
Therefore I think financing capabilities can give competitive advantage to firms in China.
Institution-based view is more relevant than RBV for financing capabilities creating competitive advantage.

Warren D. Miller, CPA, CFA
Strategy Consultant, United States

The Relevance of the RBV in the Face of Low-Cost Competition

Thank you for your question. I'll try to be helpful. It's important to understand that there are on... Sign up


More on Resource-based View:
Discussion Topics
🥇 Resource Based View Industries?
🥈 Barney Changed VRIN into VRIO
🥉 Limitations of Resource Based View of the Firm
Sources for Resource Based View
Advantages of RBV (benefits)
RBV & Financial Capability
Challenges of Managing Conglomerates...
Extended RBV Approach
Can 'Product Design Capability' be a Resource for an Organization?
👀Relevance of RBV When Facing Low Cost Competition
Strategic Resource Planning
Empirical Research of RBV
🔥 Relationship Between Isolating Mechanisms / Barriers of Imitation and Company Size
Resource Based View of the Firm and SWOT
Example RBV - Engineering Firm
RBV and Comparative Advantage
RBV in Micro Business?
Resource Based View Identifies Core Competences
The Conditions of RBV are Seemingly Non-Complementary
Special Interest Group

Do you know a lot about Resource-based View? Become our SIG Leader

Resource-based View
Knowledge Center

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2023 12manage - The Executive Fast Track. V16.1 - Last updated: 7-6-2023. All names of their owners.