Author(s): Gvidas Petružis / Language(s): Lithuanian
Issue: 1/2018
The object of the research is the application of resource-based view to small and micro-sized firms. The purpose of the research is to reveal the scope of the theoretical aspects of the resource-based view capabilities for small and micro-sized firms. The methods applied in the research were the analysis of the scientific literature and data and information structuring. The resource-based view (further – RBV) should help firms to discover the similarity of their competitive advantage against other companies. It is presumed that applying RBV, small and micro-sized firms can position and compete not only in a small local market in which they operate, but also could target themselves for global objectives. Limitations of the study. The recommendations of this research cannot be applied to a particular firm without undertaking these activities, the company specifics and segmentation. The concept of resource-based view and the origins of its formation. Based on Barney (1991), resource-based view is an economic tool for assessing the available strategic resources in a firm. The author formalized this theory on the basis of the idea raised by Wernerfelt (1984), that lack of resources has become an obstacle to enter the desired school. According to the author, resource-based theory is to identify the firm’s core resources and assess whether these resources are in line with the criteria for strategic resources. Developing the firm’s business strategies, four main reasons for measuring the firm’s core resources and competences (Bourne, 2016) are pointed out: 1) such measurements empower to easier plan short-term and long-term strategies; the majority of firms measure their performance by evaluating performance indicators (turnover, profit); focusing on resource development, attention is focused on the future; 2) these measurements focus on resources, that allow to improve, not the goals to be achieved; 3) the key inner factors influencing the firm’s activities are better understood and assessed; 4) if resources and competencies are not measured, the firm’s actions may be more directed to large-scale changes / measures, whilst internal resources may be left to develop without specific goals. In risky business environment, firms that are strategically driven, have greater potential for growth. In the meantime, exploration of competitors reduces the potential of growth. In addition, the firm’s manager is classified as a strategic asset of the firm with its own growth value. Entrepreneurs are those who have resources, develop operational capacities, and are looking for alternative competencies. This approach applies to businesses with business leaders. The ability of the company to develop, transfer and differentiate its intangible assets determines its long-term performance and competitive advantage. Runyan, Huddleston and Swinney (2007) studied the use of RBV for small firms. The authors conducted a quantitative study to highlight the importance of resources, creating a competitive advantage and improving performance in small businesses. The study sought to show owners of small businesses that apart nonmonetary (tangible) resources there are non-monetary, i.e. intangible resources.
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