What is the resource-based view (RBV) in strategic management?

The resource-based view (RBV) in strategic management is centered around the idea that a firm's internal resources and capabilities are the fundamental drivers of competitive advantage and superior performance. This perspective emphasizes that not all resources are created equal; rather, those that are valuable, rare, inimitable, and non-substitutable can allow a firm to achieve and sustain a competitive edge over its rivals. By focusing on leveraging unique resources—such as brand reputation, proprietary technology, skilled personnel, or organizational processes—companies can differentiate themselves in the marketplace.

In contrast, focusing on external market factors does not fully capture the essence of the RBV, as it primarily examines how external conditions influence company performance rather than internal strengths. While customer satisfaction is crucial for success, it is not the central theme of the RBV. Additionally, outlining industry best practices is more aligned with benchmarking and operational efficiency than with the RBV, which is more concerned with unique internal capabilities that provide a competitive stance. Thus, the resource-based view highlights the strategic significance of a firm's unique internal resources in shaping its competitive landscape.