elaborate- Resource - based view

The Resource-Based View (RBV) is a strategic management framework that emphasizes the significance of a firm's internal resources and capabilities in achieving competitive advantage and superior performance[18]^[7][8][30][32]. Instead of focusing on external factors, RBV posits that a company's unique assets and capabilities are the key to long-term success^[7]. It is an approach to achieving competitive advantage that emerged in the 1980s and 1990s^[2]. RBV is considered an inside-out approach when analyzing a firm, meaning the analysis starts with the internal environment of the organization^[6].

Here's a more detailed breakdown:
* Focus on Internal Resources: RBV proposes that internal strategic factors play a more critical role than external ones in developing a firm’s competitive advantage^[8]. It emphasizes leveraging a firm’s resources, including assets, capabilities, and competencies^[3].
* Resources and Capabilities: In RBT, resources refer to assets, business processes, capabilities, firm attributes, knowledge, and information controlled by a company to implement strategies^[1]. Company resources can be grouped into physical capital, human capital, and organizational capital^[1]. Capabilities represent a subset of non-transferable company-specific resources that improve the productivity of obtaining other resources^[1].
* Two Types of Resources In the RBV model, resources are given the major role in helping companies to achieve higher organizational performance^[2]. There are two types of resources: tangible and intangible^[2]. Tangible assets are physical things, such as land, buildings, machinery, equipment, and capital^[2]. Intangible assets are everything else that has no physical presence but can still be owned by the company, such as brand reputation, trademarks, and intellectual property^[2].
* Assumptions: The two critical assumptions of RBV are that resources must be heterogeneous and immobile^[2][5][18]. Heterogeneous means that skills, capabilities, and other resources that organizations possess differ from one company to another^[2]. Immobile means that resources are not mobile and do not move from company to company, at least in the short-run^[2].
* VRIN/VRIO Framework: To achieve a sustained competitive advantage, resources should be valuable, rare, inimitable, and non-substitutable (VRIN)^[2][6][18][30]. The VRIO framework is a variation of RBV that focuses on the four key attributes of resources: value, rarity, inimitability, and organization^[4]. The VRIO model proposes the new criteria of the organizational embeddedness of a resource^[1].
* Competitive Advantage: RBV holds that sustained competitive advantage can be achieved more easily by exploiting internal rather than external factors as compared to industrial organization (I/O) view^[2]. A firm is said to have a competitive advantage when it implements a value-creating strategy not simultaneously being implemented by any current or potential competitors^[5].
* Criticisms: The traditional RBT is limited when explaining how some organizations gain a competitive advantage in an unpredictable and rapidly changing business environment^[1]. The value creation idea that has been proposed based on this theory regarding valuable resources is tautological and static^[1].
* Application: Beyond being used in strategic management, RBT has been adopted and applied in other business management areas, both in a qualitative and quantitative manner^[1]. To date, the application of RBT has been extended to various business studies such as marketing, operational management, economics, supply chain management, information systems, and entrepreneurship^[1].

RBV is a useful framework for analyzing an organization's internal and external environment and identifying its strengths and weaknesses^[5][6]. By focusing on internal resources and applying frameworks like VRIO, companies can develop unique capabilities and strategies for sustained competitive advantage^[4][7][30][32]. However, it's important to also consider external factors and adapt to changing market conditions[3]^[7][30].