Resource-Based View of the Firm to Strategic Management Essay

Resource-Based View of the Firm to Strategic Management - Essay Example The Resource-based strategy can develop strategic capability. The strategic goal will be to "create firms which are more intelligent and flexible than their competitors" (Grant 116) by hiring and developing more talented staff and by extending their skills base. Using this approach to strategic management, international companies gain competitive advantage by conceiving new ways of conducting activities, introducing new methods, technologies, inputs or channels of distribution. A convincing rationale for resource-based strategy for the global environment has been produced by Grant: "When the external environment is in a state of flux, the firm's own resources and capabilities may be a much more stable basis on which to define its identity" (Grant, 115). In line with intellectual capital theory, resource-based theory emphasizes that investment in people adds to their value to the companies of any sector. According to Campbell (1997) the goals of the resource-based view is to improve resource capability - achieving st