Meaning ● In the realm of SMB growth strategy, the Resource-Based View (RBV) asserts that a business’s sustained competitive advantage stems from its unique collection of valuable, rare, inimitable, and non-substitutable (VRIN) resources and capabilities. Implementing automation initiatives within SMBs directly impacts the efficiency and scalability of these core resources; thus, impacting profitability. ● A small enterprise that successfully automates its customer relationship management (CRM), integrating it deeply with its sales and marketing efforts, showcases an instance of RBV in action, deriving advantages that competitors struggle to replicate or equal in value. Considering RBV during the automation phase of an SMB will guide strategic decision making, ensuring investments align with improving and leveraging the VRIN resources. ● Successful execution of a resource-based strategy can provide small and medium businesses a barrier to entry by competitors. Automation efforts are best targeted at augmenting unique, difficult-to-acquire resources in these cases, leading to a sustainable path toward scalable growth. ● RBV provides a clear lens to evaluate the potential of resource deployment and provides for greater strategic decision-making concerning capital allocation.
