The resource-based view of the firm originates from Penrose (1959) work, where the
Firm is described as a bundle of resources. Penrose posits that the growth of the firm is
Both facilitated and limited by management search for the best usage of available
resources. Barney (1991) provides a precise and formalized description of this perspective
Resources include assets, capabilities, processes, attributes, knowledge and knowhow
That are possessed by a firm, and that can be used to formulate and implement
competitive strategies. The resource-based view relies on two fundamental assertions,
that of resource heterogeneity (resources and capabilities possessed by firms may differ),
and of resource immobility (these differences may be long lasting) (Mata, Fuerst
and Barney, 1995) If a resource possessed by a firm is also possessed by several of
its competitors (no heterogeneity), this resource cannot contribute to competitive
advantage. Heterogeneity is the required condition for obtaining at least temporary
competitive advantage. Resource immobility is the required condition for sustained
competitive advantage, since competitors would face cost disadvantage in obtaining,
developing, and using it compared to the firm that already possesses it.