What does the resource-based view (RBV) emphasize?

The resource-based view (RBV) emphasizes that a firm's unique resources and capabilities are the primary sources of competitive advantage and differentiation in the marketplace. According to this perspective, it is not merely the external environment or competitive pressures that determine the success of a company, but rather the internal assets that the firm possesses, such as its human capital, technological expertise, organizational processes, and brand reputation.

The RBV posits that for resources to provide a sustainable competitive advantage, they must be valuable, rare, inimitable, and non-substitutable. This means that firms should focus on developing and leveraging their unique strengths to outperform competitors and achieve superior performance. By concentrating on internal capabilities, organizations can create strategies that build upon what they do best, leading to long-term success and resilience against market challenges.

Understanding the RBV allows companies to identify which resources can be leveraged for advantage, thus guiding strategic investment and management decisions effectively.