1. Firm resources and sustained competitive advantage
Barney, J. Journal of Management, 17(1):

2. Research question
Firm resource ?
Competitive advantages

3. Purposes Understanding the sources of sustained competitive advantage
Examines the link between firm resources and sustained competitive advantage
Under what conditions firm resources can a source of sustained competitive advantage for a firm

4. Assumptions Firm resources are heterogeneous
Firms do not obtain first mover advantage for identical resources
These resources are not perfectly mobile across firms
Enter barrier and mobility barrier prolong the heterogeneous effect
In plain language, heterogeneous resources are something I have uniquely. And non perfect mobility is the protecting shell that prevents others have/copy/use my unique thing.

5. Sustained competitive advantage
A firm is said to have sustained competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential competitors and when these other firms are unable to duplicate the benefits of this strategy
Not purchasable on the factor market

6. Firm resources Valuable Rareness Imperfectly imitable
Resources that improve the efficiency and effectiveness of strategy implementation
Rareness
A small number of competitors
Imperfectly imitable
a) depends on unique historical condition, b) causal ambiguity, and c) socially complex
Non-substitutable
Either similar or different, so long as the purpose is served
- In order for causal ambiguity to be a source of sustained competitive advantage, ALL competing firms must have an imperfect understanding of the link between the resources controlled by a firm and a firm’s competitive advantages
- Interpersonal relations, network, clan (Ouchi)

7. Firm Resources and Sustained Competitive Advantage
The relationship btw resource heterogeneity and immobility; value, rareness, imitability, and substitutability; and sustained competitive advantage.

8. Firm resource endowments
Managers are limited by their ability to manipulate all the attributes and characteristics of their firms
This limitation makes some firm resources imperfectly imitable, and thus potential sources of sustained competitive advantage
Competitive advantages cannot be purchased on open markets
Manager’s role is to understand endowment (VRIN resources)