A Review of the Resource-Based View Methodology with Examples

Last updated on April 15, 2022 by

Companies employ various strategies to ensure their continuous growth. One of these is the resource based view approach. This approach or framework suggest that human resources is an integral part of the over-all growth of a company. That is why, over the years, it has been a subject of study, as well as been used by many professionals to promote growth. If you wish to learn more things about it, then you are on the right page. However, before diving in head-first into complicated matters about it, let us first talk about its history below.

Resource Based View

Resource Based View History

The first known practice of the resource based theory was in the 1990s. It was seen as the replacement of the then dominant standard which is the positioning school. The Positioning school approach argues that the focus should be on managerial attention. Opposite to this, the Resource based view argued that instead of focusing on the management alone, it is better to upgrade the human resource side to increase the quality of the output. This was welcomed by the majority and thus became the norm after Jay Barney published it in 1991 in his article titled “Firm Resources and Sustained Competitive Advantage.”

Benefits of Using Resource Based View

The resource based model is indeed a promising framework, which is evident with all the success stories that you can get from those who followed it. This is the reason why it is not a question if it’s useful, and if there are any merits in following the practice. However, if you are new to the idea of improving human resources then you should know about the various benefits you can get from the framework. On that note, we listed down some of the benefits that you can experience by using this method.

  • Resource Allocation Transparency

Resource based view is useful in many ways. For example, by having an overview of all the resource skills and expertise, managers can allocate the right amount of tasks for these individuals. This can eliminate the risks of having too much time spent on a project because the one assigned on it is not fit for the job.

  • Suitable for Long-term Growth

Since there are a lot of factors that can contribute to the growth of a company, using the resource based theory as an approach will help you in the long run. This is due to its people centric approach that allows for the growth of each individuals.

  • Good Platform for Personal Growth

Being able to work on multiple projects provides a platform for learning. Employees can benefit from this by gaining knowledge and experience from new tasks that they can later on use.

Resource Based Model by GitMind

Resource based view is a framework optimized for continuous growth of both company and employees. That is why project managers integrate it in their managing strategy. However, the entire approach can become hard to absorb for regular employees, which is why most managers employ the use of a model. On that note, we created some templates that you can use whenever you are presenting this idea to the involved parties.

  • Over time Resource Based View
resource based view
Edit this example

Over time is a complicated subject as it is always subject for approval. That is why it is important to let the employees know the entire approval process. There is also the factor where it should not be mandatory but can be if required. To explain this further, one can use the resource based theory to explain how it can help the company grow.

  • Resource Based View Theory Diagram
resource based theory
Edit this example

The template above is the general flow of a RBV framework. You can use it as reference when planning out your strategies. It is also editable which means that you can whatever additional steps you like.

  • Blank Resource Based View Template
resource based model
Edit this example

Last template is a blank one made for presentations and things alike. You can freely edit it and enter the information that you want to present. There is also the option to change the appearance of the entire resource based model.

Conclusion

As project managers and related professionals seek to improve their company’s performance, they tend to employ experimental strategies. This is actually a double-edged sword as it can either make or break your organization. However, following traditional strategies like the Resource based view is a sure way to keep the growth going.

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Posted by: on to Tips and Resources. Last updated on April 15, 2022

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