Resource Theory of Organizations

Resource Theory of Organizations

Petter Gottschalk (Norwegian School of Management, Norway) and Hans Solli-Saether (Norwegian School of Management, Norway)
DOI: 10.4018/978-1-60566-648-8.ch003
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Abstract

The resource theory of organizations is an influential theoretical framework for understanding how efficiency and effectiveness within organizations are achieved and how advantage might be sustained over time. This perspective focuses on the internal availability of resources in organizations. The theory assumes that organizations can be conceptualized as bundles of resources that those resources are heterogeneously distributed across organizations, and that resource differences persist over time (Eisenhardt & Martin, 2000).
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1. Resource Theory Of Organizations

The resource theory of organizations is an influential theoretical framework for understanding how efficiency and effectiveness within organizations are achieved and how advantage might be sustained over time. This perspective focuses on the internal availability of resources in organizations. The theory assumes that organizations can be conceptualized as bundles of resources that those resources are heterogeneously distributed across organizations, and that resource differences persist over time (Eisenhardt & Martin, 2000).

First, this chapter describes the characteristics of organizational resources, strategic resources, IT resources, and slack resources. This chapter argues the importance of aligning IT resources to the organization’s strategy, and a model for the effect of IT resources on organizational performance is presented. Finally, this chapter presents resource strategy as an approach which suggests that organizations should position themselves strategically based on their unique, valuable, and inimitable resources and capabilities.

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