1. THE ROLE OF RESOURCES IN MODERN BUSINESS
Andrzej Niemiec, Assistant Professor

2. Agenda Theoretical basics Role of resources in the economy
Role of resources in the separate case

3. Resource-Based View (RBV)
The idea of looking at firm as a broader set of resources was developed by Penrose (1959), but, apart from Rubin (1973).
Competitive advantage is strongly influenced by acquiring and controlling resources that are: valuable, non-imitable, non-substitutable and rare.
Heterogeneity implies that:
Firms with marginal resources can only expect to breakeven.
Firms with superior resources will earn rents, or more precisely quasi rent from firm-specific resources. (Peteraf, 1993).

4. Neo-Capital Theories The key issue - self-reliance:
a persons (society, corporation) possession of resources in excess of survival needs,
ability to garner and hold those resources.
Self-reliance can be undersood as a model (process) starting from cognitions through behaviors then to assets.
Self-reliant people (society, corporation) acquire capital, husband its growth and development, bundle and leverage it with other types and sources of capital, and then preserve these assets. (Godfrey, 2013)

5. „Six Capitals Model” with terminology adequate for Resource-based View
financial resources
physical resources
organizational resources
human resources
social and relationship resources
natural resources

6. Process of taking competitive adventage in Resource-based View
Environment
Resources
Transformation
(including goods and services)
Value on input
Value on output
Rent

7. Methodology
For evaluation of physical resources effect on firm performance were used financial analysis methods, like profitability ratios analysis of corporates in Poland (over at the end of 2016):
Operating Return on Sale (operating margin) = 𝐸𝐵𝐼𝑇 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑟𝑒𝑣𝑒𝑛𝑢𝑒𝑠
Operating Return on Assets (ROA) = 𝐸𝐵𝐼𝑇 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

8. Averages profitability ratios
Operating Return on Assets (ROA) = 𝐸𝐵𝐼𝑇 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
Operating Return on Sale (operating margin) = 𝐸𝐵𝐼𝑇 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑟𝑒𝑣𝑒𝑛𝑢𝑒𝑠

9. Operating Return on Assets

10. Case study of „V” corp.
„V” corporation is producing construction products: part of international holding, managing three factories, over 3 thousents of employees and a fundation.
The source of competitive advetage: reputation. Reputation is a part of social and relationship resources, because the carrier is mostly extra-organizational networks.
CSR impact on reputation is about 1/3 of all determinants.

11. Traditional & modern model of resource transformation
Resources
Transformation
Efect (Resources + product and services)
Traditional model
Financial resources
Investment in new technology and design
Assets (physical resources) and design, brands, patents (organizational resources)
Physical resources and human resources
Corporate activity
Products (physical resources) and profits (financial resources)

12. Resources
Transformation
Efect (Resources + product and services)
Modern model
Human resources
Human resources program (employees opinion)
Profits (financial resources) based on:
quality of human resources and their productivity (human resources),
best practices and innovations (organizational resources) and positive image (social and relationship resources)
Organizational resources (best practices and innovations)
Innovation process
Cost savings (financial resources), savings in inventories utylization (physical resources, natural resources), positive image (social and relationship resources).
Social and relationship resources
search for orders
Products (physical resources) and profits (financial resources)

13. Profitability

14. Conclusions
Modern model of resources trasformation includes the idea of how to develope and use new kind of resources.
In this case the idea of non-material resources transformation for a greater profit is also a “knowledge-substitution” and “flexibility” effects of or­ganizational mode.
The idea of resources substitution that was fully presented by F.A. Hayek in the meaning of knowledge, but this way of thinking is rather to narrow in the context of non-material resources utylization and role of the environment in this process.

15. Conclusions
Overal situation can be described better by neo-capital theory, where: „prosperous environments provide ample formal infrastructure and cultural norms that encourage saving, investment, insurance, and other forms of capital preservation.”
Newrtheless, in the article proven, that environment has a great impact on the capability of resources to be valuable or not and the fact that resources can be a source of competitive adventage, but under some environmental circumstances.
Usage of other then phisical or financial resources can increase profits and to create competitive adventage.