MGMT 491 Chapter Notes - Chapter 4: Environmental Determinism, Dynamic Capabilities, Institutional Theory
Document Summary
Resource-based theory contends that the possession of strategic resources provides an organization with a golden opportunity to develop competitive advantages over its rivals. These competitive advantages in turn can help the organization enjoy strong profits. The tangibility of a firm"s resources is an important consideration within resource-based. Capabilities are another key concept within resource-based theory. A value chain charts the path by which products and services are created and eventually sold. Primary activities are actions that are directly involved in the creation and distribution to customers: value chains include both primary and secondary activities. of goods and services. Inbound logistics refer to the arrival of raw materials. Operations refer to the actual production process. Outbound logistics tracks the movement of a finished product to customers. Marketing and sales attracts potential customers and convinces them to make purchases. Service refers to the extent to which a firm provides assistance to their customers. Enactment treats executives as the masters of their domains.
