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The Strategic deployment of resources

Author: Almeida Costa, Luis ; Dierickx, IngemarINSEAD Area: Strategy Series: Working Paper ; 98/54/SM Publisher: Fontainebleau : INSEAD, 1998.Language: EnglishDescription: 29 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: The resource-based view of strategy maintains that firms may be heterogeneous with respect to the bundle of resources they control. Furthermore since some of these resources, such as a firm's reputation or other information-based resources, cannot be traded in factor markets and are difficult to accumulate and imitate, resource heterogeneity may persist over time. The "resource-based" view has enriched our understanding about which resources lie at the heart of the firm's competitive position and therefore are worth protecting and developing and about the accumulation process of nontradeable resources, which must be developed inside the firm in a complex and time-consuming process. The consideration of the different deployment alternatives requires firms to think beyond product market positioning and to address the broader question of how fully exploit the potential rents associated with their valuable assets
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The resource-based view of strategy maintains that firms may be heterogeneous with respect to the bundle of resources they control. Furthermore since some of these resources, such as a firm's reputation or other information-based resources, cannot be traded in factor markets and are difficult to accumulate and imitate, resource heterogeneity may persist over time. The "resource-based" view has enriched our understanding about which resources lie at the heart of the firm's competitive position and therefore are worth protecting and developing and about the accumulation process of nontradeable resources, which must be developed inside the firm in a complex and time-consuming process. The consideration of the different deployment alternatives requires firms to think beyond product market positioning and to address the broader question of how fully exploit the potential rents associated with their valuable assets

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