Abstract
This review seeks to establish the relationship among resource-based view (RBV), market-based view (MBV), dynamic capabilities (DCs) and sustainable competitive advantage (SCA). The review was aimed at adding knowledge to the existing literature on the interaction between firm resources, market forces, dynamic capabilities and sustainable competitive advantage. The literature reviewed has theoretical implications for the development of the RBV, MBV and DCs model and literature on strategic management in the following ways: it has helped to draw a distinction between RBV, MBV and DCs; assessed the relationship between RBV, MBV and DCs and helped to establish how this relationship influences SCA; and helped draw practical implications on the theoretical and empirical contributions of RBV, MBV, DCs on SCA. This review supported the relationship hypothesized between firm resources, market factors, dynamic capabilities and sustainable competitive advantage: that they positively influence a firm’s sustainable competitive advantage. The review shows that there is need for every company to comprehend its own resource base, market forces and its own source of dynamic capabilities. The study recommends clustering various elements under resource-based view, identify and appreciate market forces and get a clear insight of dynamic capabilities for a firm to achieve sustainable competitive advantage. This means, therefore, that any firm that fails to embrace these key elements of performance may not survive in the dynamic business environment. There is continued need for the interplay and interconnectivity of firm resources, market dynamics and dynamic capabilities for a firm’s sustainable competitive advantage. Finally, this study has proposed a model on the relationship between resource-based view, market-based view, dynamic capabilities view and sustainable competitive advantage of a firm.
Key words: Resource-Based View, Market-Based View, Dynamic Capabilities, Sustainable Competitive Advantage