Applying Research-Based View (RBV) Theory

Purpose: This exercise reveals how a firm can utilize RBV theory to identify, gain, and sustain competitive advantages.

Instructions:

Step 1: Develop a "resources" by "Empiricl Indicators" Matrix. Place on the left side 10 key resources of a firm with which you are familiar. Across the top are the three empirical indicators: Rare, Nonimitatable, and Nonsubstitutable. Along the far bottom and far right of your matrix, add a row and a column to record "Total summed values."

Step 2: Within your matrix, rate each resource on each indicator on a 1 to 5 scale, where 1 is exceptionally low and 5 is exceptionally high in terms that the resource is rare, Nonimitatable, and/or Nonsubstitutable.

Step 3: Sum the rows and columns to determine the extent that each resource and empirical indicator is being utilized effectively.

Step 4: Discuss implications of your analysis