It is important to note that the resource-based view of the firm uses the term resource
much more broadly than previously defined. In the resource-based view of the firm, a
resource includes any assets as well as any capabilities and competencies that a firm can
draw upon when formulating and implementing strategy. In addition, the usefulness of the
resource-based view to explain and predict competitive advantage rests upon two critical
assumptions about the nature of resources, to which we turn next