This paper explores the 'resource-based view' (RBV) in determining the design of the human resource system of an organization.
Written in 2009; 2,022 words; 6 sources; APA; $ 64.95
Paper Summary:
The paper explains the 'resource-based view' (RBV) that suggests that how resources are applied within a firm can create a competitive advantage. The paper explains five strategies an organization should incorporate and two points that warn the organization how not to act.
"The work of Morris, Snell, and Wright (2005) entitled: "A Resource-Based View of International Human Resources: Toward a Framework of Integrative and Creative Capabilities" state that various theoretical approaches have been utilized in the study of International Human Resource Management and that it is not surprisingly that "the resource-based view (RBV) of the firm has emerged as perhaps the predominant perspective. RBV is particularly attractive to IHRM researchers in that it focuses directly on the potential value of a firm's internal asset stocks for conceiving and executing various strategies." These authors express that this strategy is a departure from the "traditional I/O economic models of competitive advantage that focus on the structure of markets as the primary determinant of firm performance." (Morris, Snell, and Wright, 2005) RBV is, in contrast to other economic models, based upon two assumptions: 1. Resources are distributed heterogeneously across firms; and 2. Resources remain imperfectly mobile over time. (Morris, Snell, and Wright, 2006) "
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