ABSTRACT
It was noted in Chapter 2 that the global environment presents a challenging arena in which to attain an SCA, and the question of how firms attain such advantages has not been well documented in the extant literature. At the same time, the resource-based view of the firm (RBV) has become popular in the strategic management literature as a theory of competitive advantage. In this chapter, it is proposed to use the RBV as a theoretical lens to examine the question of sustainable competitive advantage in a global environment. The conceptual integration of these two concepts has appeal for two reasons. First, the question of resources has been germane to much of the discussion of competition in international business, particularly apparent in contributions emanating from the economics tradition. This can be seen in the trade theory literature, which was founded on resource asymmetries across countries and the more recent contributions of industrial organisation economics, which emphasise the role of ‘firm-specific advantages’ in the competitive activities of MNCs. In light of this background, it is desirable to examine the role of resources in a more systematic and comprehensive manner, and this is facilitated by adoption of the resource-based perspective. Second, there is a great deal of intellectual congruence between the international business literature and the resource-based view of the firm. Both have similar backgrounds, rooted in economics, and both have been supplemented by recent contributions from management writers. Such congruence suggests the possibility for shared insights and beneficial exchanges of ideas. The interface of international business and the resource-based view is worthy of examination as a locus for interdisciplinary research.
