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Resource-based theory has been widely employed in the research of various marketing and management topics to facilitate explanation and prediction of competitive advantages and performance outcomes. This paper establishes a cohesive theory of resources, starting from several basic axioms, by using systems science and the systemic yoyo model so that organisations and interactions between organisations can be well modelled. Specifically, we show, among others, when a firm develops a competitive advantage, why each capability is a resource, how dynamic capabilities are derivable from capabilities, when firm's performance can be improved, and why expanding into new markets can be risky but beneficial. Because of the approach taken in this paper, results and conclusions established herein are not subject to limitations and uncertainties of empirical analyses and can be generally employed in practical applications.
International Journal of Business and Systems Research – Inderscience Publishers
Published: Jan 1, 2021
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