The Resource Based View: Strategy’s Contribution to Entrepreneurship

Principal Topic

This study is an empirical test of the resource-based view (RBV). The primary objectives are first to assess the relationships between a firm’s distinctive competencies and sustainable competitive advantage (the classic RBV), and then to assess the joint influence of distinctive competencies and functional strategies on sustainable competitive advantage (an extension of the RBV proposed and tested in this inquiry).

Methods

Primary data were gathered from 68 franchised automobile dealerships. Distinctive competencies and functional strategies are the independent variables; return on assets is the dependent measure. The primary analytic techniques are multiple regression to assess the bivariate relationships between distinctive competencies and sustainable competitive advantage and moderated regression analysis to assess the interactive effect of distinctive competencies and functional strategies on sustainable competitive advantage.

Implications

Eleven distinctive competencies were identified in a pilot study and subsequently validated as possessing the attributes of value, rarity, inimitability, and nonsubstitutability. Four of the eleven distinctive competencies show strong, positive relationships with sustainable competitive advantage. Thus, there is support for the classic RBV. Moreover, the interaction of work teams and strategy positively influences performance, offering empirical support for the extended RBV. The study offers a framework for scholars to use in studies of these intraorganizational phenomena in other domains. The managerial implications of the findings are discussed.