3.0 Resources and capabilities
This paragraph begins by laying out the theoretical dimensions: Resources and capabilities Definition of resources
In order to get a deeper understanding of the concept resources, a definition can shed some light on this matter. While a variety of definitions of the term resources have been suggested in the literature of resources, this paper introduces the definition first suggested by Teece et al. (1997) who determined resources as ‘firm – specific assets that are difficult if not impossible to imitate’. In comparison to Teece, Barney (1991) describes resources differently. He describes resources as it ‘includes all assets, capabilities, organizational processes, firm attributes, information, knowledge etc. controlled by a firm that enable the firm to conceive of and implement strategies that improve its efficiency and effectiveness’.
In the existing literature of entrepreneurship, resources have the power to give a firm a sustained competitive advantage. Much start- ups do not have the needed resources, or very limited resources. Plus, start ups do not have employees but only a family member that supports them. However, that does not do the job. In order to obtain sustained competitive advantage, resources need to be: valuable, rare, imperfectly imitable and non-substitutable (Barney, 1991; Priem & Butler, 2001). To this extent, different authors created a list of firm attributes to form an implement value – creating strategy.
Williamson (1975), Becker (1964) and Tomer (1987) discussed that resources can be divided into 3 types: physical capital resources, human capital resources and organizational resources. By obtaining all three types of resources, a firm has the possibility to turn it into a sustained competitive advantage. In regards to physical capital resources, it examines the technology that a firm possesses. For example: equipment, geographic location and access to raw materials. Furthermore, the managers...
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