Enhancing Understanding of Resource based View: Analyzing Impact on Performance of Organizations

Abstract

C-suite executives are keen to deploy their assets in an effective manner, such that their organizations could benefit, generate profits and in the long run also ensure returns for several stakeholders. Academicians, however are also interested in understanding the subtle levers at play behind the scenes. Theories related to the Resource Based View and others that follow focus on the tangible investments made by firms. In the realm of technology, firms are also keen to understand the impact of technology investments made by firms. Overarching motives prominently pertain to how market performance of firms can be improved – this is especially true since the developed and developing world looks at not just acceptance from shareholders, but also acclaim. With a view to enhancing knowledge in this domain, firms are also keenly adhering to principles of sustainable business practices while they deliver economic profits for the firms. The paper, while outlining and subsequently emphasizing the need for the environmental school of thought also empirically finds the strong influence of resource based decisions on the market performance.