Resources and capabilities

Resources and capabilities
See also
Value chain model Resource Availability of resources Information resources Resource plan Added value chain Knowledge capital Operational management Production structure optimization Capability mapping

Resource is a basic concept in economics, meaning expenditures in the form of raw materials and work machines. An asset is a specific amount of tangible or intangible assets to be used in the future.

Resources and capabilities are regarded as the key success factors for achieving high market share, fast development, increase in revenues and profits, creativity and innovation, technological progress, management efficiency and employee motivation.

Types of corporate resources

Main types of corporate resources include:

• Human resources - individual employees and the organization department dealing with personnel policy, for example, school recruitment, motivating and dismissing employees,
• Cash Resources - cash accumulated by a specific entity from the sources of its revenues, at its disposal (but not yet issued),
• Material resources - possessed and controlled by the company production factors in material form, for example, fixed assets including real estate, technical equipment, means of transport, machinery and some current assets, including raw materials and inventories,
• Knowledge resources - those that are related to the analysis and collection of knowledge, as well as the access and identification function,
• Information resources - dividing into material and non-material resources. Material resources are licenses and patents, and non-material resources are those that can not be estimated and are not legally protected,
• Organizational processes - interrelated works that follow the input data one after the other into output. It is implemented by various organizational units often identified with such terms as the business process, economic prose or management process,
• Access to natural resources,

Resources in the company

In the company, we distinguish five different categories of resources:

1. Fixed assets long-term tangible pieces of property that are used in the production of income and are not expected to be consumed or converted into cash within one year at least.
2. Production in progress factors involved in unfinished production.
3. Stocks of raw materials created in the event of untimely future deliveries.
4. Inventories of finished products that ensure sales continuity.
5. Cash reserves that will provide liquidity.

Business capabilities

Business capabilities are closely related to corporate resources and include mainly:

• Important processes and functions
• Unique competences of employees and managers
• Organizational model and business model
• Relationships with customers and suppliers
• Organizational culture
• Organizational climate

References

• Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of management, 27(6), 643-650.
• Bilkova, M., Greco, G., Palmigiano, A., Tzimouls, A., Wijnberg, N. (2018). [The logic of recources and capabilities.
• Danneels, E. (2010). Trying to become a different type of company: dynamic capability at smith corona. Strategic Management Journal 32; 1-31.
• * Wang, C. L., & Ahmed, P. K. (2007). Dynamic capabilities: A review and research agenda. International journal of management reviews, 9(1), 31-51.

Footnotes

Author: Magdalena Stanaszek