Abstract :
The resource-based view has provided valuable insights into sources of competitive
advantage, but little attention has been paid to the processes of resource creation. To
address this shortcoming, this paper reviews the strategy process literature, explaining the
theoretical positions and assumptions that underpin different types of process. It then
examines the mechanisms by which resources have been found to be created; luck, resource
picking, internal development and alliances. Next, a series of resource-creation pathways
that illustrate the different routes firm inputs might take on the way to becoming unique
and valuable resources is developed. These pathways are also discussed in terms of the
strategy processes through which they are developed, and the appropriate resource-creation
processes. The review is then extended with the introduction of two contingent variables −
task complexity and environmental stability – and the resource-creation processes that are
congruent with different combinations of these variables are explored. From this review, one
is able to identify the combination of complex task and stable environment likely to be the
most conducive to resource creation. Finally, the paper explores opportunities that firms
might have to engineer stability and complexity in some parts of their operations with the
aim of developing a resource-based advantage.
