Valuable, rare, inimitable resources and organization (VRIO) resources or valuable, rare, inimitable resources (VRI) capabilities: What leads to competitive advantage?

Abstract

The resource-based view (RBV) argues that valuable, rare, inimitable resources and organization (VRIO) lead to competitive advantage. Dynamic capabilities (DC) are a comparatively new field and the related literature is mainly conceptual. Capabilities can be considered as the firm's routines and processes. We argue that the "O" in VRIO refers to DC. DCs are the "organization" needed to transform bundles of resources into competitive advantage. Consequently, does competitive advantage stem from VRIO resources or from VRI capabilities? Through a case study we analyzed the development of one capability in a medium-sized Portuguese footwear manufacturer. After reviewing the process of development of the capability, we performed a VRIO test for each of the resources it exploits and a VRI test of the capability. We can conclude that none of the resources contributing to the capability are VRIO, but the capability is VRI.

Internal Electronic Information as a Competitiveness‐Enhancing Resource in German Automotive Industry Suppliers

“…The research examined the ROVI conceptual framework (adjusted from VRIO) in order to provide empirical evidence of internal information stocks, use, and exploitation in SMEs in response to the assumption by Hicks ( : 239) ‘ that the information managed is of some value to the organisation and/or individuals within the [SMEs] and that the IS implemented support the flow of value ’ (Cardeal and Antonio, ; Lin et al ., ). This research also tested the assumption of individual and organizational awareness and appreciation of information as an asset to the company (Ray et al ., ).…”

Information Technology (IT) Value Model using Variance-Based Structural Equation Modeling: Towards IT Value Engineering

“…The competitive advantage focus is in order for a firm to generate more financial value than a marginal competitor (Peteraf and Barney, 2003) that achieves simply break-even. The competitive advantage of a firm can be obtained if it systematically accomplishes (1) net profits [5]. Byrd, T.A (2001) stated that IS infrastructure flexibility has a correlation to sustained competitive advantage by acting as an enabler of both (2) mass customization and (3) speed-tomarket [3].…”

Prioritization of Strategic Intangible Assets in Make/Buy Decisions

“…The second unit is focused on competitiveness and on the sustainability of the competitive advantage. According to the RBV and the DC [69][70][71], for a resource to be the basis of a sustainable competitive advantage, it must own some specific attributes (Factors). According to these studies, resources should be valuable, rare, inimitable, non-substitutable (Table 3), and the firm must organize to capture the value unleashed by the resource themselves.…”