THE RESOURCE-BASED THEORY AND ITS ADHERENCE TO A SUPERIOR PERFORMANCE STRATEGY: AN ANALYSIS IN SMALL COMPANIES IN BRAZIL

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Abstract

This article aims to present cases where the adoption of emphasis on the strategy implementation in micro and small firms within the dominant paradigm of the Resource-Based View theory, a functionalist explanatory model, which reproduces sense making for superior and sustainable performance in high competitiveness sectors . According to Barney (1991), a response to superior performance is causal support within the Resource-Based View, later raised to the status of Resource-Based Theory. This theory is a superior explanatory basic model that explains that a firm’s performance can be explained by the way its remarkable resources are managed. This understanding guides the managers’ strategic thinking and explains why firms can, over time, expand markets, strengthen the brand, achieve higher profits and maintain competitive advantages, while others do not get the same success, even acting within the same industry. The research was qualitative through interviews of the firms’ leaders, using the method of multiple cases in micro and small firms of the industry, trade, services and agribusiness sector. As a contribution, the work identified that the strategy practices have a connection with the RBV theory and principles of emphasis on inside out management based on the VRIO theory (resources that are: Valuable, Rare, of difficult Imitation and can rely on Organization to effective management).

Keywords: Resource Based View; Micro and Small Enterprises; Strategy

How to cite this paper: Zica, R. M. F., Gonçalves, C. A., Cordeiro Martins, H., & Gonçalves, M. A. (2016). The resource-based theory and its adherence to a superior performance strategy: An analysis in small companies in Brazil. Corporate Ownership & Control, 13(3-3), 434-444. https://doi.org/10.22495/cocv13i3c3p2