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Abstract

It is important to note that resources by themselves typically do not yield a competitive advantage. The organizational capabilities refer to an organization’s capacity to deploy yangible and intangible resources over time and generally in combination, and to leverage those capabilities to bring about a desired end. As we have mentioned, resourcees alone are not a basis for competitive advantage, nor are advantages sustainable over time. In same cases, a resource or capability helps a firm to increase its revenues or to lower costs but the firm derives only a temorary advantage because competitors quickly imitate or substitute for it. To respect this section, recall that resources and capabilities must be rare and valuable as well as difficult to imitate or substitute in order for a firm to attain competitive advantage that are sustainable over time.

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