Resource-Based Theory and Market-Driven Management

Abstract

Market-Driven Management poses the question of the relationship between markets and competitive advantage. Market-driven firms reveal a superior ability to understand, attract and maintain, a supply of products/services that offer more value for the customer than competitors. The Resource-Based Theory originates from Penrose’s idea (1959) of the firm as a coordinated ‘bundle’ of resources that the business has at its disposal or has access to (inside out), which are valuable, rare and inimitable. In global markets, MDM strives towards continuous innovation processes that can enable the company to escape the potential pressure of the competition, by identifying new customer needs to satisfy (outside in). The market-driven company is not only oriented to the market, but also tends to orient the market.

Keywords

• market-driven management
• resource-based theory
• outside-in capabilities
• inside-out capabilities
• global competition
• global markets