A resource can be defined as a capability owned uniquely by the firm that allows an organization to offer a unique combination of value propositions (products and services). Firms can compete in many different ways. Firms can employ different strategies to gain and maintain a competitive advantage, including, but not limited to, superior resources, having superior information or processes, developing superior markets, and so forth. Moreover, one may argue that certain resources are more important than others. In other words, one resource is more valuable than another. (Barney and others 1991). There are different views on what resources are important. Some researchers such as Ellen Chesbrough, suggest that resources that are arguably important determinants of competitive performance usually fall into 1 of 3 broad categories: collective (market-, organization-, and industry-wide) resources, individual resources, and attention resources.
Development and mobilization of resources are an essential element of the strategic plan (see the section Strategic Planning). As the capacity to compete depends on the ability to use and apply the resources in the proper manner, managers need to be constantly aware of resource dynamics. Proper usage of resources, and allocation of resources throughout the organization, can facilitate the creation of competitive advantage through leverage of resources or through circumventing the need to develop a resource.
Resource based competition is composed of two elements the first is identifying truly significant resources and applying them in innovative ways. Firms competitive advantage is often related to the amount of resources that a firm has as well as the quantity and quality of those resources. An organization that can identify the significant resources and apply them in innovative ways, will be an organization that is competitive. At all levels of the organization, business-wide, divisional, and functional, resources can be identified and measured. Some of these resources may be intangible, such as technology, social networks, intangible assets, organizational learning, leadership, innovation ability, financial strength, and competitive ability. d2c66b5586