Your discussion thread is centered on the resource-based view (RBV) of the firm and clarifying capabilities. Select a Saudi Arabian company with which you are familiar and reinforce the approach to resource and capability analysis by appraising the strategic worth of key resources and capabilities using Barney’s VRIO (Valuable, Rare, Imitable, Organization) Framework (See Strategy Capsule 5.6).
Identify three key resources and/or capabilities of the company.
Vet each of the three against the VRIO (Valuable, Rare, Imitable, Organization) Framework.
Explain each resource/capability’s score given the VRIO rubric. For instance, does the resource/capability impart sufficient value, is the resource/capability rare, etc.
What is the likely competitive outcome for each resource/capability? That is, given its VRIO score is it likely to impart a sustainable competitive advantage, a temporary competitive advantage, competitive parity, or competitive disadvantage?
Make recommendations to the firm’s management as to which of the resources/capabilities you have identified should be invested (built up), divested and/or which additional resources should be acquired to supplement/leverage existing resources/capabilities.
Embed course material concepts, principles, and theories (require supporting citations) in your initial response along with at least one scholarly, peer-reviewed journal article. Keep in mind that these scholarly references can be found in the Library by conducting an advanced search specific to scholarly references. Use University academic writing standards and APA style guidelines.
Álvarez-Melgarejo, M., & Torres-Barreto, M. (2018). Can resources act as capabilities foundations? A bibliometric analysis. UIS Ingenierías, 17(2), 185–200.
Clarke, T., & Boersma, M. (2017). The governance of global value chains: Unresolved human rights, environmental and ethical dilemmas in the Apple supply chain. Journal of Business Ethics, 143(1), 111–131.
Shan, S., Luo, Y., Zhou, Y., & Wei, Y. (2019). Big data analysis adaptation and enterprises’ competitive advantages: The perspective of dynamic capability and resource-based theories. Technology Analysis & Strategic Management, 31(4), 406–420.
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