Resource-Based View - Building Competitive Advantage

The resource-based view (RBV) of the firm provides a theoretical foundation for understanding how entrepreneurial resources create competitive advantage. Strategic resources must be Valuable, Rare, Inimitable, and Non-substitutable (VRIN) to provide sustainable advantage. However, research indicates that strategic resources alone are insufficient for venture growth—versatile resources like human and financial capital must complement them. Studies using configurational approaches reveal that multiple pathways to growth exist, suggesting that no "one-size-fits-all" resourcing strategy is effective. Entrepreneurs should view their ventures as "bundles of resources" and consider how different resource combinations interact to create value.