STRATEGIC MANAGEMENT FRAMEWORK
CREATING A COMPREHENSIVE FRAMEWORK THAT COMBINES THE VRIO APPROACH AND THE RESOURCE BASED VIEW (RBV)
VRIO framework is the tool used to analyze firm’s internal resources and capabilities to find out if they can be a source of sustained competitive advantage.
RBV is an approach to achieving competitive advantage that emerged in 1980s and 1990s, after the major works published by Wernerfelt, B. (“The Resource-Based View of the Firm”), Prahalad and Hamel (“The Core Competence of The Corporation”), Barney, J. (“Firm resources and sustained competitive advantage”) and others. The supporters of this view argue that organizations should look inside the company to find the sources of competitive advantage instead of looking at competitive environment for it.
THE COMBINED PROPOSAL