Resource-Based View: A Study of the Food Industry in Brazil
37 Pages Posted: 20 Jan 2006
Date Written: 13012006
Abstract
In accordance to Resource Based View (RBV), the main cause of the variety of firm's performance in the market lies on the specific nature of their resources and accumulated competences. Nevertheless, the majority of explicative variables are qualitative what makes it hard to quantify and identify the correlation degree between the competitive performance and the resources of the company. Through a research performed in 1999, the French economist Rodolphe Durand developed his own methodology, building latent variables (proxys) that permit a highly satisfactory evaluation of the relationship between firm's performance and their specific resources. Based on this methodology we evaluated, in the specific case of Brazilian food sector, the degree of influence of the firm's productive assets on its competitive performance The theory establishes that the higher the inimitability and immobility of assets, the higher their profitability, margin and market performance. Inimitability and immobility are associated with profitability in the magnitude of 31% and 28%, respectively. Inimitability and immobility do not present significant implication in margin. Inimitability and immobility have positive and significant implications in Market performance, in the magnitude of 95% and 66% respectively.
Keywords: Resource-Based View (dynamic capabilities), Resource-Based View (sustainability), Resource allocation/management, firm's productive assets, competitive performance, food sector, value creation
JEL Classification: D23
Suggested Citation: Suggested Citation