Describe the four characteristics of resource theory
Describe the four characteristics of resource theory.
The resource-based theory may be confusing because, within the common language of daily life, the word resources are used in several different ways. Distinguishing strategic resources from other resources is important. Cash is a significant currency for most people. Vital resources are also tangible items, such as one's car and house. However, common resources such as cash and vehicles are not deemed to be strategic resources when evaluating organizations. Of course, resources such as cash and vehicles are important, but rivals from a company can obtain them easily. Therefore an enterprise does not expect to generate a lasting competitive edge around popular resources.
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