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Sustainable Advantage and RBV. 

Sustainable Advantage and RBV. 

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In Resource Based viewpoint theory (RBV), the resources possessed by a firm are the primary determinants of its performance. The resources may remain latent until the firm deploy its capabilities, with these may contribute to a sustainable competitive advantage. RBV in Human resource management aims in providing justification for attaching importan...

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... Teori ini merupakan suatu pemikiran perusahaan dalam mengupayakan keunggulan kompetitif, diperlukan sumber daya yang unggul, langka, dan bermanfaat bagi perusahaan. Kinerja perusahaan memiliki sumber daya yang merupakan alat ukur utama dalam kinerja perusahaan yang berkontribusi pada keunggulan kompetitif untuk perusahaan tersebut (Maina, 2016). ...
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This research aims to obtain empirical evidence regarding the influence of ownership structure, board size, intellectual capital, and working capital management on firmperformance in manufacturing companies listed on the Indonesia Stock Exchange during 2016-2018. The sample was selected by purposive sampling method and valid data were 105 samples consisting of 35 companies. The data processing technique uses multiple regression analysis which helped by Eviews 11 and Microsoft Excel 2013 program. The results of this study indicate that intellectual capital has a significant effect on company performance, while ownership structure, board size, and working capital management show insignificant results. The implication of this research is to prove that managerial,institutional, firm resources and working capital management are factors that influencefirm performance so that it is expected to provide an overview of a company for investors in making investment decisions.
... The short-term competitive advantage over time leads to a sustainable phase which is characterized by sustainable process and strategic fit processes over time. The phases result in a strategic capability asset base (Mweru & Maina, 2016). This, therefore, makes a firm build strong capabilities and competencies within the firm aimed at enhancing a competitive edge over and above its competitors, Taher, (2021). ...
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... Value can be achieved when a resource enables the exploitation of opportunities or neutralization of threats according to SWOT analysis; a resource must be scarce if it is rare, not easily duplicable, i.e., inimitable and nonsubstitutable, meaning that there are no strategically equivalent substitutes for the same resource. Therefore, resource-based view theory will be the basis for explaining the mediating variable organizational resources in terms of tangible and intangible resources (Mweru and Maina 2016). Therefore, no single theory comprehensively explains how to promote cost efficiency in organizations such as private schools. ...
... Tangible resources include tangible assets, that is, cash (fee collections), financial capital (bank loans), physical equipment (machinery), inventory, buildings, and land including its location. To achieve the required competitive advantage, organizational resources should possess desired qualities, namely, value, rare, inimitable, and nonsubstitutable (Mweru and Maina 2016). This is because according to RBVT, organizational resources management are fundamental in increasing profits of an enterprise in the short and long run, hence its cost efficiency. ...
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This paper attempts to build a theory for "cost efficiency" in organizations such as private primary schools using evidence from a developing world context .
... International Journal of Economics and Finance Vol. 14, No.2;2022 Similarly, Michael Porter identified five forces that drive organizational competitiveness. These include the relative bargaining power of buyers and sellers, the threat of new entrants and substitute products, and the degree of rivalry among existing firms. ...
... Furthermore, the 'market-led view' to business-level strategy suggests that organisations retain competitive advantage by identifying and exploring existing and emerging market opportunities. Mweru and Maina (2016) argue that a firm's limited and valuable resources should be valuable, rare, imperfectly imitable, and non-substitutable in sustaining competitive advantage. The dynamic school of thought stressed that all competitive advantages that may effectively exploit market imperfections would be transient in a way that enables organisations to maintain their superior performance by concentrating only on temporary competitive advantages (Mintzberg et al., 2020). ...
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... International Journal of Economics and Finance Vol. 14, No.2;2022 Similarly, Michael Porter identified five forces that drive organizational competitiveness. These include the relative bargaining power of buyers and sellers, the threat of new entrants and substitute products, and the degree of rivalry among existing firms. ...
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... The RBT considers an organization a bundle of resources and capabilities (Barney, Ketchen & Wright, 2011;Mweru, Maina, Mweru & Tirus Muya, 2015). It classifies resources into tangible, intangible, and human resources. ...
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... Thus, the resource based theory is dependent on resources existing within the company which enhance work productivity and performance. Importantly, these resources are tangible and intangible assets which are human capital, machines, capital, methods, materials and information which are valuable, rare, inimitable, non-substitutable which are employed in formulating and implementing policies and strategies for the firm's competitive advantages (Mweru & Muya, 2016). Hence, company's owned resources are the basis for strategy decisions while competing in industries Theriou, Aggelidis and Theriou (2009), without resources existing in the workplace, the organization may not take advantage of emerging opportunities in the industry. ...
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... This study supports the organisational decision-making theory, which claims that decisions help alter existing conditions (Joseph-Williams et al., 2017). Also is the resource-based perspective of firm theory, that claims that the firm's resources lead to competitive advantage and performance (Collins, 2021;Mweru & Maina, 2016). ...
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... Value can be achieved when a resource enables the exploitation of opportunities or neutralization of threats according to SWOT analysis; a resource must be scarce if it is rare, not easily duplicable, i.e., inimitable and nonsubstitutable, meaning that there are no strategically equivalent substitutes for the same resource. Therefore, resource-based view theory will be the basis for explaining the mediating variable organizational resources in terms of tangible and intangible resources (Mweru and Maina 2016). Therefore, no single theory comprehensively explains how to promote cost efficiency in organizations such as private schools. ...
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Cost Efficiency Cost efficiency is the extent to which a primary school’s cost is used to achieve the best performance at a given level of input or output under certain business conditions. An efficient school minimizes its operating costs to achieve a given output (Bradrania et al. 2017, p. 194). Cost efficiency measurement values fall into the range between 0 and 1. A smaller number close to 0 suggests that the primary school has greater cost efficiency, while a greater value close to 1 suggests that the primary school is less cost efficient (p. 196). Internal Controls Internal controls are the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. Job Motivation Job motivation is a set of energetic forces that originate both within and beyond an individual’s being, to initiate work-related behavior, and to determine its form, direction, intensity, and duration. Organizational Resources Organizational resources refer to all assets available to a firm for use during the production process.