Traditionally, entrepreneurs have a product-based view (external-perspective) towards the competition to be competitive, but resource-based view (internal-perspective) is in some sense supersedes it nowadays. For the firm, resources and products are two sides of the same coin (Wernerfelt, B. 1984). No matter product or resource must evaluated of their short-term balance effect and also in terms of their long-term capacity to function as stepping stones to further expansion, to get sustained competitive advantage.
It is possible to agree with that the resource-based view is efficient and practical because it focuses on the strengths, assets, and capabilities of entrepreneurs and their ventures. Without resources to exploit a situation, even the best situation cannot create an entrepreneur (Dollinger, M.J. 1999). And the sustained competitive advantage (SCA) is created when firms posses and employ resources and capabilities that are valuable, rare, hard to copy, and nonsubstitutable with other resources. If the firm has these four qualities, and has capability to maintain, it will have competitive advantage over the long term. Sustained competitive advantage is an addition from competitive advantage, doesn’t mean that it can last forever. It is a time gap for its competitors to catch up and duplicate the benefits of the strategy.
However, in the third article, the discussion between resource homogeneity and mobility and First-Mover Advantages, it neglects the uncertainty and risks that First-Movers are facing. I think it is not absolutely possible for those firms with resource homogeneity and mobility to gain competitive advantage. What’s more, Barney (1991) also consider if one firm purchased a physical tool or equipment in order to implement their strategy, and the other firms also purchased the same physical tools and equipments, then the tools and equipments are not considered as the resources of sustained competitive advantage. It is possible to figure out that, resources may not fit for other firms once it is tailor-made for a specific firm. Same tools and equipments can be purchased by different firms, however, the tools and equipments cannot generate the same value to different firms since different firms have different strategy on doing business. So, the same tools and equipments in different firms can be considered as the sources of sustained competitive advantage under different strategies.
It makes us think that how the entrepreneur of a new venture is able to determine whether his or her resources meet the criteria of being value, rare, hard to copy and non-substitutable. The four attributes are the understand sources of sustained competitive advantage.
It is possible to agree with that the resource-based view is efficient and practical because it focuses on the strengths, assets, and capabilities of entrepreneurs and their ventures. Without resources to exploit a situation, even the best situation cannot create an entrepreneur (Dollinger, M.J. 1999). And the sustained competitive advantage (SCA) is created when firms posses and employ resources and capabilities that are valuable, rare, hard to copy, and nonsubstitutable with other resources. If the firm has these four qualities, and has capability to maintain, it will have competitive advantage over the long term. Sustained competitive advantage is an addition from competitive advantage, doesn’t mean that it can last forever. It is a time gap for its competitors to catch up and duplicate the benefits of the strategy.
However, in the third article, the discussion between resource homogeneity and mobility and First-Mover Advantages, it neglects the uncertainty and risks that First-Movers are facing. I think it is not absolutely possible for those firms with resource homogeneity and mobility to gain competitive advantage. What’s more, Barney (1991) also consider if one firm purchased a physical tool or equipment in order to implement their strategy, and the other firms also purchased the same physical tools and equipments, then the tools and equipments are not considered as the resources of sustained competitive advantage. It is possible to figure out that, resources may not fit for other firms once it is tailor-made for a specific firm. Same tools and equipments can be purchased by different firms, however, the tools and equipments cannot generate the same value to different firms since different firms have different strategy on doing business. So, the same tools and equipments in different firms can be considered as the sources of sustained competitive advantage under different strategies.
It makes us think that how the entrepreneur of a new venture is able to determine whether his or her resources meet the criteria of being value, rare, hard to copy and non-substitutable. The four attributes are the understand sources of sustained competitive advantage.
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