THE RESOURCE-BASED VIEW OF THE FIRM - DOES IT GO FAR ENOUGH IN SHEDDING THE ASSUMPTIONS OF THE S-C-P PARADIGM

In this essay, the authors discuss the link between the new resource-b ased view of the firm and the old structure-conduct-performance (S-C-P ) paradigm. The authors find that the resource-based view of the firm, like the S-C-P paradigm, is based on the assumptions that demand is k nown and constant and that competition is a state. This limits the app licability and predictability of the model. Therefore, to furth the po sitive and normative research goals of the strategic management discip line, these assumptions must be abandoned. The authors suggest adoptin g a model based on uncertain, constantly changing demand and competiti on as a process. The authors show how this will allow us to get inside the ''black box'' and examine the essential role of the manager in su staining competitive advantage.