‘Reductionistic’ and ‘Holistic’ views to Resource-Based Theory (RBT):a review of the literature and suggestions for future studies

Rashidirad, Mona, Soltani, Ebrahim and Salimian, Hamid (2015) ‘Reductionistic’ and ‘Holistic’ views to Resource-Based Theory (RBT):a review of the literature and suggestions for future studies. Strategic Change, 24 (6). pp. 509-525. ISSN 1086-1718

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Abstract

Resource-Based Theory (RBT) has become an acceptable theory to describe the importance of resources and capabilities in generating high performance. Our literature review shows that there are two approaches to RBT: reductionistic and holistic. Adopting a reductionistic approach has led to an inconsistency in the findings about the relationship between RBT constructs (i.e. resources and capabilities), and their impact on performance. This paper proposes that a holistic approach to RBT has a greater power to explain the complex interrelationships between dynamic capabilities, firm’s resources and competitive strategies. Through a critical review on both views, this study highlights areas in which future research is needed for greater understanding of the co-impact of a firm’s internal factors and competitive strategies on performance.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Business and Management
Depositing User: Mona Rashidirad
Date Deposited: 19 Aug 2019 09:07
Last Modified: 19 Aug 2019 09:15
URI: http://sro.sussex.ac.uk/id/eprint/85525

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