Assignment#3

LinaKasiliauskyte

Team2

Peteraf,M.(1993).Thecornerstonesofcompetitiveadvantage:Aresourcebased
view.StrategicManagementJournal,14:179191

The main aim of thispaper is todevelopageneralmodelofresources andfirmperformance

which at once integrates the various strandsofresearchandprovidesacommongroundfrom
which further work can proceed. Moreover, this paper wants to show how important is
economics of theresourcebasedviewofcompetitiveadvantageandhowitcanbe integrated
to a firm performance. It is analyzing the emerging model of how firms compete, which is
said to be a unique to the strategic management. This model is defined and known as the
ResourceBased View. This topic concerns the author for a parsimonious point of view of
such a model, he want to come to an agreement, there would be clarified basic issues,
suggested possible implications, and, in so doing, facilitated the continuing dialogue among
scholars.

Therearedifferentviewsonthisemergentmodel,because itprovides muchadditionalinsight

over traditional understanding, and the ideas whicharetryingtobespread maybethoughtof
as the basic principles upon which resourcesbased research is still the developmental stage.
It is still not clear and specified how actually resources are applied and combined, what
makes competitive advantage so sustainable, as well as nature of rents or the origins of the
heterogeneity.
As it was mentioned above author wants to define and imply the notions of how actual
resource based model can affect firms performance, howrentandbegainedbyimplyingthis
model.

Although, it is said that the resourcebased model is a theoretical complement to this paper
and model just can may give some useful prove to managers which seek to understand,
preserve, or extend their competitive advantage. Accordingly to the paper there are main

conditions which must be met intermsofgettingsustainedabove normalandhighrents.The

model is intended to aid theoretical understanding of superiorfirmperformanceaswellasto
inform management practice. Where are isolated four theoretical conditions which underlie
competitive advantage. First is resource heterogeneity (Monopoly or Ricardian rents).
Second, ex post limits to competition which is necessary to sustain the rents. Third, is
imperfect Mobility which ensures that the rents are bound to the firm and shared by it.
Finally,ExanteLimitstoCompetitionwhichhelpspreventcostsfromoffsettingtherents.
In terms to help superior firms managing performance and the article focus on imperfectly
mobile resources, for which the transactions cost of market exchange are high,
resourcebased theory has important implications for corporate strategy and issues regarding
thescopeofthefirmaswellassinglebusinessstrategy.

Inaddition,thecornerstonesofcompetitiveadvantageforsuperiorfirmsperformanceall
conditionsmentionedabovemustbemet,causeeachofthemofthismodelisintendedto
highlighttheimportanceofeachofthem,byseparatingfromoneanother,butbyshowing
thespecialrolethateachplaysincreatingandsustainingrents.Despitetheneedforfurther
work,ithasalreadyshownitselftobearobustandintegrativetool.Ithasstrongimplications
forsinglebusinessstrategy,forcorporatestrategy,fortheoristsandpractitionersalike.Itis
anarearipeforresearch,whichhasalreadydemonstrateditsfruitfulnessanddeservesthe
concentratedeffortsofthiscommunityofscholars.

TheContributionstothestateofart
Theclassicapproachtostrategyformulation,forexample,beginswithanappraisalof
organizationalcompetenciesandresources(Andrews,1971).DierickxandCool's(1989)
paperisaparticularlyimportantpieceofworkbecauseitfocusespreciselyonthosekindsof
resourcesandcapabilitieswhichareofcentralconcerntoresourcebasedtheory:nontradable
assetswhichdevelopandaccumulatewithinthefirm.Themaincontributionscouldbethe
strongimplicationsforsinglebusinessstrategyandforcorporatestrategytosuperiortheir
performances,inordertostandoutintheexistedmarket.Valuableimplicationsfortheorists
andpractitioners,tousethesemodelsforbetterresearchanalyzes,asthepaperwaswrittena
lotofyearsagothesestrategicmodelwasnotsowelldevelopedandanalyzedsoinmy

criticalopinion,thisimplicationsmentionedinpapercouldgivethebackgroundforfurther
researchfortheoristandsomegoodideashowtoruntheirbusinessformanagers.