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Article: Using the VRIO framework in practising firms taking the resource-based view (RBV): 'our greatest assets are our people'--a cliche, maybe--but, for accountancy practices, undeniably true. The key challenge, of course, lies in leveraging the asset. Taking a resource-based view of the firm can help practices meet that challenge.(value, rarity, imitability, organisation)
- Article from:
- Accountancy Ireland
- Article date:
- June 1, 2006
- Author:
CopyrightCOPYRIGHT 2006 Institute of Chartered Accountants in Ireland. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Each individual in an organisation is a bundle of resources or competencies--strengths and qualities that, if correctly used, benefit the business. These resources can take many forms: some are technical--such as expertise in VAT on property transactions or auditing financial services companies; others may be less tangible, such as interpersonal skills or team building abilities. The optimal arises where resources are identified and utilised so that the practice gains a sustainable competitive advantage--a jump on rival firms that they cannot regain ground on. This is the crux of the resource-based view (RBV) of the firm.
RBV is not a new concept. Some might ...