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How the Resource‐based and the Dynamic Capability Views of the Firm Inform Corporate‐level Strategy
Author(s) -
Bowman Cliff,
Ambrosini Veronique
Publication year - 2003
Publication title -
british journal of management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.407
H-Index - 108
eISSN - 1467-8551
pISSN - 1045-3172
DOI - 10.1111/j.1467-8551.2003.00380.x
Subject(s) - resource (disambiguation) , resource based view , set (abstract data type) , dynamic capabilities , ask price , shareholder , value (mathematics) , mode (computer interface) , business , relation (database) , point (geometry) , dimension (graph theory) , shareholder value , industrial organization , competitive advantage , knowledge management , strategic management , computer science , corporate governance , marketing , mathematics , data mining , geometry , finance , computer network , machine learning , pure mathematics , programming language , operating system
Summary This paper explains that the resource‐based view essentially addresses issues of competitive strategy, but by integrating some arguments from its evolutionary version, the dynamic capability view, it can be extended to inform our understanding of corporate‐level strategy. We concentrate on the issue of value creation from corporate centres and ask how the centre can possess or provide resources. The primary dynamic capabilities identified by Teece, Pisano and Shuen (1997) are elaborated into six distinct modes of resource creation. Each mode is considered in relation to a set of organizational design parameters. We then propose resource‐creating configurations that are congruent with respect to the modes and the required states of the design parameters. We point out areas of tension that are likely to arise if corporations try to combine different modes of resource creation. We conclude that corporate centres may possess resources but must display dynamic capabilities otherwise they will destroy shareholder value.