The principal contribution of the resource based view of the firm to date has been as a
theory of competitive advantage. Its basic logic is a relatively simple one. It starts with the assumption that the desired outcome of managerial effort within the firm is a
sustainable competitive advantage (SCA).
Achieving an SCA allows the firm to earn economic rents or above-average returns. In
turn, this focuses attention on how firms achieve and sustain advantages. The resource-based view contends that the answer to this question lies in the possession
of certain key resources, that is, resources having the characteristics of value, barriers to duplication and appro priability.