Resource-Based Perspectives on Competitive Advantage in Global Markets

Abstract

In the current age characterized by escalating levels of globalization, disruptive technology, and more sophisticated supply chains, organizations have been faced with immense pressure to develop sustained competitive advantages in different global market settings. This study aims at examining the effectiveness of the Resource-Based View (RBV) as a theoretical tool for studying the development of competitive advantage based on firm-specific resources and capabilities. Using the analysis of 20 peer-reviewed articles and empirical data obtained through surveys conducted on 215 multinational organizations belonging to five different industry sectors, the study assesses the usefulness of the VRIN model of valuable, rare, inimitable, and non-substitutable resources in a competitive environment spanning international borders. The study also utilizes the concept of dynamic capabilities to overcome the constraints of the RBV theory in an unstable and highly dynamic business setting. Using structural equation modeling, the study tests eight hypotheses pertaining to resource heterogeneity, knowledge integration, organizational learning, and competitive performance. The results show that the best predictors of sustained global competitive advantage are intangible assets such as human capital and relational knowledge. The cross-cultural adaptability of the firm, as well as digital dynamic capabilities, have been recognized as important emergent mediators in the analysis. This study provides an enhanced integrative model incorporating RBV and dynamic capability perspectives. Managerial implications for emerging market firms and possible avenues for further research have also been examined.