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Composition-based view of the firm as a promising approach to studying small businesses
Sunway University, Department of Management, Sunway University Business School, Bandar Sunway, Selangor, Malaysia.
Universiti Kuala Lumpur, Universiti Kuala Lumpur Business School, Kuala Lumpur, Wilayah Persekutuan, Malaysia.
University of Skövde, Enterprises for the Future. University of Skövde, School of Business. (Knowledge, Innovation and Marketing (KIM))ORCID iD: 0000-0001-8469-2427
The University of Hong Kong, Faculty of Education, Knowledge Management & E-Learning Lab, Hong Kong, China.
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2019 (English)In: Produção, ISSN 0103-6513, E-ISSN 1980-5411, Vol. 29, article id e20180022Article, review/survey (Refereed) Published
Abstract [en]

Paper aims

Extant Literature based on the resource-based view (RBV) of the firm suggests that it can be used to study organizations of all types and sizes. In essence, the RBV argues that firms that possess rare, non-imitable, valuable, unique, and non-substitutable resources will outperform firms that do not possess such resources. This study questions the applicability of this assumption to smaller businesses, which are likely to have common resources readily available in the market rather than rare, non-imitable, non-substitutable, unique, or valuable resources. The purpose of this study is to discuss whether the composition-based view (CBV) of the firm offers a more promising approach than the RBV to studying small businesses.

Originality

This study is one of the first to tentatively suggest a change in theoretical approach when studying small businesses.

Research method

A structured critical review approach is taken.

Main findings

The findings reveal that the CBV offers a more promising and appropriate theoretical framework than the RBV for research on small businesses, whereas the RBV is better suited to research on larger firms.

Implications for theory and practice

Future studies can use RBV and CBV to study large and small businesses, respectively.

Place, publisher, year, edition, pages
São Paulo, 2019. Vol. 29, article id e20180022
Keywords [en]
Composition-Based View (CBV), Resource-Based View (RBV), Small businesses, Common resources, Literature review
National Category
Business Administration
Research subject
Knowledge and Innovation Management (KIM)
Identifiers
URN: urn:nbn:se:his:diva-16615DOI: 10.1590/0103-6513.20180022Scopus ID: 2-s2.0-85066055404OAI: oai:DiVA.org:his-16615DiVA, id: diva2:1287225
Note

Systematic review

Available from: 2019-02-09 Created: 2019-02-09 Last updated: 2019-06-19Bibliographically approved

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Durst, Susanne

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