Resource-Based Theory: Creating and Sustaining Competitive Advantage

327 Pages·2007·1.19 MB·English

by  Jay B. Barney

Resource-Based Theory
Creating and Sustaining Competitive Advantage
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Resource-Based
Theory
Creating and Sustaining Competitive
Advantage
Jay B. Barney
Delwyn N. Clark
1
3
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1 3 5 7 9 10 8 6 4 2
(cid:0) PREFACE
Resource-based theory is an efficiency-based explanation of sustained
superior firm performance. The purpose of this book is to provide a
comprehensive overview of resource-based theory from its origins to the
currentstate-of-the-artresearch.Thebookstartsbydescribingthehistory
of resource-based theory, its fundamental tenets, how it has and can be
applied, and outlines ongoing efforts to extend and refine this theory of
persistentperformancedifferences.
The content of the book is organised into four parts. Part I includes
threechapterswhichprovideanintroductiontoresource-basedtheory.In
Chapter1,thehistoricaldevelopmentofresource-basedtheoryisoutlined,
andkeytermsinthetheoryaredefinedanddiscussed.Chapter2examines
the relationship between strategic factor markets and competitive advan-
tagesinproductmarkets.Chapter3focusesontheattributesofresources
and capabilities that enable some to be sources of sustained competitive
advantage.
Part II applies resource-based theory in analyzing the ability of four
organizational resources and capabilities to be sources of sustained com-
petitive advantage. The resources examined include organizational cul-
ture (Chapter 4), trustworthiness (Chapter 5), human resource practices
(Chapter6),andinformationtechnology(Chapter7).
Part III shifts the unit of analysis from the competitive implications
of specific organizational resources to the analysis of the competitive
implicationsofspecificstrategicalternatives.Threecorporatestrategies—
vertical integration (Chapter 8), diversification (Chapter 9), and mergers
andacquisitions(Chapter10)—areexamined.
Part IV presents an overview of the current state of resource-based
theory.Asummaryoftheempiricalresearchtestingresource-basedtheory
within strategic management and other management disciplines is pro-
vided in Chapter 11. Finally, opportunities for extending and expanding
resource-basedtheoryinfutureareproposedinChapter12.
vi PREFACE
Many of the chapters in this book are based on previously published
materials taken from a wide variety of articles, book chapters, and books
published over the last twenty years. Some chapters draw on several such
sources, while others have been written specifically for this book. In each
case, care has been taken to use the common language, definitions, and
assumptionsthathaveemergedinresource-basedtheoryoverthesetwenty
years.Inthissense,thecontentsofthisbookrepresentboththehistoryof
resource-based theory and its current state of development. It also helps
definewhatwethinkaresomeoftheimportantnextstepsintheevolution
ofthistheoreticalperspective.
Acknowledgements
The authors would like to thank the following for permission to repro-
duce published material: co-authors of paper extracts including: Asli
Arikan (Chapters 1 and 11), Margie Peteraf (Chapter 1), Mark Hansen
(Chapter5), Patrick Wright (Chapter 6), Francisco Mata and William
Fuerst (Chapter 7), Gautam Ray and Waleed Muhanna (Chapter 7), Heli
Wang(Chapter9),andTysonMackey(Chapter11);andpublishersinclud-
ingBlackwellPublishers(Chapters1,3,and11),theAcademyofManage-
ment (Chapters 4 and 9), Elsevier (Chapter 11), INFORMS (Chapter2),
Pearson(Chapter9),theManagementInformationSystemsResearchCen-
ter(Chapter7),andWiley(Chapters1,5,6,7,and10).
Specialthanksalsotomanyexceptionalcolleagues,studentsandfriends
who have contributed to numerous interesting and insightful conversa-
tions on resource-based theory over the years; to Kathy Zwanziger for
excellenteditorialsupport;toOxfordUniversityPress,UK,forprofessional
assistance with this publication; to Fisher College of Business, The Ohio
State University, and the University of Waikato Management School, for
institutional support; and to our families for being a constant source of
loveandinspiration.
A special note on the cover. After rejecting several suggested covers,
Professor Barney happened across a piece of work by a young, but very
promisingartist/engineer—IsaacMcFadden.Isaac’sagentsnegotiatedhard
PREFACE vii
fortherightstothisbrilliantmulti-mediapiece,butintheend,theyagreed
to let his work be included on the cover of this book. We both take great
prideinintroducingIsaac’stalenttotheworld.
JayB.BarneyandDelwynN.Clark
October2006
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(cid:0) CONTENTS
PREFACE v
LISTOFFIGURES x
PARTI RESOURCE-BASEDTHEORY
1 Thestrategicmanagementquestionandtheemergence
ofresource-basedtheory 3
2 Strategicfactormarketsandcompetitiveadvantage 31
3 Firmresourcesandsustainedcompetitiveadvantage 49
PARTII RBTANDORGANIZATIONALCAPABILITIES
4 Cultureasasourceofsustainedcompetitiveadvantage 79
5 Trustasasourceofsustainedcompetitiveadvantage 93
6 Humanresourcesasasourceofsustainedcompetitiveadvantage 121
7 Informationtechnologyasasourceofsustainedcompetitiveadvantage 143
PARTIII RBTANDORGANIZATIONALSTRATEGIES
8 Resource-basedtheoryandverticalintegration 161
9 Resource-basedtheoryandcorporatediversification 185
10 Resource-basedtheoryandmergersandacquisitions 205
PARTIV RBT:THERESEARCHFRONTIER
11 Resource-basedtheory:empiricalresearch 221
12 Thefutureofresource-basedtheory 247
BIBLIOGRAPHY 265
INDEX 307