Resource-based strategyStrategic Human Resource Management

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Fundamentals of Strategy

• Fundamentally, strategy is

about defining intentions

(strategic intent) and

achieving strategic fit by

allocating or matching

resources to opportunities

(resource-based strategy).

Fundamentals of Strategy• The effective development

and implementation of strategy depends on the strategic capability of the organization, which will include the ability not only to formulate strategic goals but also to develop and implement strategic plans through the processes of strategic management and strategic planning.

Resource-based strategy

• The resource-based view

of strategy is that the

strategic capability of a

firm depends on its

resource capability.

Resource-based strategy

• Resource-based strategy

theorists such as Barney

(1991) argue that sustained

competitive advantage stems

from the acquisition and

effective use of bundles of

distinctive resources that

competitors cannot imitate.

Resource-based strategy

• As Boxall (1996) comments:

‘Competitive success does not

come simply from making

choices in the present; it

stems from building up

distinctive capabilities over

significant periods of time.’

Resource-based strategy

• Teece, Pisano and Shuen

(1997) define ‘dynamic

capabilities’ as ‘the

capacity of a firm to

renew, augment and

adapt its core

competencies over time’.