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  • 1.
    Tehseen, Shehnaz
    et al.
    Sunway University, Department of Management, Sunway University Business School, Bandar Sunway, Selangor, Malaysia.
    Mughal, Sadia Ahmed
    Universiti Kuala Lumpur, Universiti Kuala Lumpur Business School, Kuala Lumpur, Wilayah Persekutuan, Malaysia.
    Durst, Susanne
    University of Skövde, Enterprises for the Future. University of Skövde, School of Business.
    Shujahat, Muhammad
    The University of Hong Kong, Faculty of Education, Knowledge Management & E-Learning Lab, Hong Kong, China.
    Qureshi, Zuhaib Hassan
    Universiti Kuala Lumpur, Universiti Kuala Lumpur Business School, Kuala Lumpur, Wilayah Persekutuan, Malaysia.
    Kokkalis, Panagiotis
    Al Falah University, Business Administration and Human Resource Department, College of Business School, Dubai, United Arab Emirates.
    Composition-based view of the firm as a promising approach to studying small businesses2019In: Produção, ISSN 0103-6513, E-ISSN 1980-5411, Vol. 29, article id e20180022Article, review/survey (Refereed)
    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.

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