Value in the Resource-Based View: Resource Functionality as Source of Sustained Competitive Advantage

This paper puts forward that we can reach a better understanding of the value of resources in the resource-based view by embracing the notion of resource functionality and considering that value is a subjective feature of a resource. It is argued that the value of a resource does not only derive from its application in product markets and that the value-price-cost model is too limited. It is then argued that the value of a resource depends on managers’ assessments of four generic types of functionality: the suitability, combinability, fecundity, and durability of a resource. The paper contributes by providing a generic typology of resource value that facilitates resource-based theorizing and that enables a systematic assessment of the value of resources in practice