What does the Resource-Based View (RBV) theory emphasize?

The Resource-Based View (RBV) theory emphasizes that the unique resources and capabilities of a company are the primary sources of competitive advantage. This theory suggests that rather than simply focusing on external market conditions or financial investment alone, firms should leverage their distinct internal attributes—such as technology, skilled personnel, brand reputation, and organizational processes—to create and sustain a competitive edge.

RBV posits that resources need to be valuable, rare, inimitable, and non-substitutable to lead to optimal performance and differentiation in the marketplace. By concentrating on what makes them unique, firms can better navigate competition and market dynamics, making the development and management of resources critical to their strategy and long-term success.