In their article, it mostly talked about sustainable competitive advantage resources; a firm get sustainable growth by different strategies through internal and outside factors. And Barney analysed the relationship between the resources and sustainable competitive advantage.
This paper discussed four factors to influence sustainable competitive advantage; they are the value, Rare, Imperfectly Imitable and Non-Substitutable (Barney, J. 1991).
Valuable, means valuable resource can be used for the company's to make idea and implementation of firm strategy, in order to bring the firm more efficiency.
Rare, means the resource are not easy to be found, resources even have value for most companies, but if it's easy for every firm, it will lose its competitive. So it does not bring competitive advantage or sustainable competitive advantage.
Imperfectly imitable, it means the resource which cannot be copy by other. And it also have some unique.
Non-Substitutable, that is irreplaceable resources.
Resources is the thing which controlled by the firm, and the firm will get benefit from it by making different strategy. It means this strategy is come from the resources that firm owned and can help the firms to enhance the efficiency. There are many factors can be resources, like assets, ability, organization procedures, enterprise logo, information and knowledge, etc. (Barney, J. 1991)
In the article resources can be divided into three categories: physical capital resources, human capital resources and organizational capital resources.
When a company is implementing a valuable strategy, meanwhile other firms cannot implement this strategy, we said this company has the competitive advantage. When a company is implementing a valuable strategy, in the same time, whether exist or potential competitive firms cannot implement the same strategy and cannot copy this strategic to profit, then we can say this firm has the sustainable competitive advantage.
Resource needs and the dynamic capitalism typology:
Different type of resources will course different kinds of firms' growth and innovation. In this article, we will use dynamic capitalism typology to understand the importance of various types of resources to businesses theoretically classified by their rates of growth and rates of innovation. The main idea of it is the different types of resource will choice by the different firms, and what are the different rates of growth and rates of innovation made by different resource.
In the article, the most important theory is Kirchhoff dynamic capitalism typology; it referred to this process as "dynamic capitalism" in order to reflect the changing nature of the business community. In the Kirchhoff's scholarly achievements, it focuses on the intersection of entrepreneurship, technology, and economic development and growth.
Kirchhoff's typology is considered as tool to analysis the difference and which resource to choice of now newly defined context of entrepreneurship and small business. Which ways is the small firms contribute to economic growth and development?
According to the rate of growth and rate of innovation from low to high, it divided firms into four types: (Greene, P. G. & Brown, T. E. 1997)
Economic Core Quadrant: defined by low rates of growth and low rates of innovation, is characterized by comparatively low levels of all types of resource needs, except for social capital generated from the family of origin.
Ambitious Quadrant: The high rates of growth and low rates of innovation defining the ambitious section suggest differences in the types of resources needed in these businesses.
Resource-Constrained Quadrant: The defining dimensions of this quadrant also suggest that the need for social capital resources at both the family of origin and individual adult level are in the low range.
Glamorous Quadrant: Businesses in the glamorous quadrant are characterized by high levels of both innovation and growth. The human capital resource needs of the business owners in this quadrant are very high.
In this article, offered a structure to understand the demand of base-resource to analysis the inside and outside dynamic capitalism. The different and unique resource is root of being growth and innovation. It's good for to study on entrepreneurship in the future.
Resource Cooptation via Social Contracting Resource Acquisition Strategies for New Ventures:
In this article, Starr and MacMillan (1990) suggest that the primary recourse of the entrepreneur when faced with challenges of start-up is to engage in cooperative strategies to obtain legitimacy and access critical resources. They identify three generic cooperative, namely contracting, co-opting, and coalescing, and suggest that of these, co-optation and socioeconomic contracting are among flexible and easiest to utilize. It analyzes the acquisition of resources through social transactions by independent entrepreneurs and corporate entrepreneurs. These social transactions include previous working relationships, voluntary connections, and community ties for independent entrepreneurs. Corporate entrepreneurs steal personnel time, appropriate materials, and conceal development activities. The importance of these social transactions in securing key resources for little to no cost is demonstrated.
Cooptation is identified as the mechanism by which resources can be obtained. Two types of cooptation, legitimacy and underutilized goods, are presented (Starr J.A. & MacMillan I.C. 1990). It is proposed that the social transactions-oriented managers are more likely to co-opt legitimacy (primary through association or endorsement) than are the administrative venture managers. Begging, borrowing, scavenging, and amplifying are the four strategies used for taking advantage of underutilized activities. This cooptation process involves the exploitation of social assets. These social assets are built by sharing information, solving and receiving help with problems, giving and receiving favors, and creating opportunities for people to demonstrate their skills and competence. Reasons why it is difficult for corporate entrepreneurs to take advantage of network resources are provided. The propositions presented in this analysis can provide the basis for future research. (SRD)
To answer the question of S2, why some firms can not growth. From article1, if the firm want to get a specified volume of profit which leads growth, the firm should control all kinds of resources to make sustainable competitive advantage. From article2, different types of resource fit different dynamic capitalism through different kinds of firms, if the firms prefer to be growth should handle the resource match itself dynamic capitalism, in order to make innovation to keep growth. From article3, how to find a new and appropriate ventures plays a important in the firm's development way. Different resource acquisition strategies are perfect for the various firms to keep growth.
