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The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation

1991/04/01 by Robert M. Grant · 54 citations
Business, Management and Accounting · #Innovation and Knowledge Management #Business Strategy and Innovation #Intellectual Capital and Performance Analysis

paper · doi:10.2307/41166664

Abstract

Recent contributions to strategic management and the theory of the collectively known as the view of the firm provide illuminating insights into the sources of profitability and the nature of competitive strategy. This article argues that internal resources rather than the market environment should provide the foundation for a firm's strategy. On the basis of an analysis of the relationships among resources, capabilities, conpetitive advantage, and profitability, this article advances a framework for a resource-based approach to strategy formulation.

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