barney and wright, 1997

Barney and Wright, 1997

VRIO

--This article was also published at: Human Resource Management, Spring 1998, Vol. 37, No. 1, Pp. 31–46.

Three resources in the firm

• Physical capital resources

• Organizational capital resources

• Human capital resources

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What are these?

• Human recourse

• HR system

• HR function

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The VRIO framework

• The question of “Value”

• The question of “Rareness”

• The question of “Imitability”

• The question of “Organization”

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Implications for Competitive Advantage

• Sustainable Competitive Advantage Stems from Firm-Specific More Than General Skills

• Sustainable Competitive Advantage Comes from Teams More Than from Individuals

• Sustainable Competitive Advantage Stems from HR Systems More Than from Single HR Practices

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Implications for HR Executives

• 1. Understand the Value of People in the Firm and Their Role in Competitive Advantage

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Implications for HR Executives

• 2. Understand the Economic Consequences of the Human Resource Practices in a Firm

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Implications for HR Executives

• 3. Understand How the Human Resources and Human Resource Practices in a Firm Compare to Those in Competing Firms

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Implications for HR Executives

• 4. Understand the Role of the Human Resources Function in Building Organizational Capability for the Future

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