A Review on the Relationship between Organizational Resources, Competitive Advantage and Performance

Understanding sources of sustained competitive advantage has become a major area of study in strategic management. The resource-based view stipulates that in strategic management the fundamental sources and drivers to firms’ competitive advantage and superior performance are mainly associated with the attributes of their resources which are valuable and costly-to-copy. As such, in order to achieve a competitive advantage level that not only can at least match those of their business rivals’ but also will be able to exceed the industrial performance averages, business organizations have to initially seek understanding as to the relative degree of relationship between their organizational internal resources, competitive advantage and performance. Such a research can contribute to the body of knowledge by lending empirical support and further extending the RBV of competitive advantage by examining the relative magnitude of importance placed upon organizational resources towards attaining competitive advantage and enhancing firm’s performance.