VRIO and its role in gaining sustainable competitive advantages

• Author: Blerta Aliu
• Pages: 27-32

27

Balkan Journal of Interdisciplinary Research

IIPCCL Publishing, Graz-Austria

ISSN 2410-759X

Acces online at www.iipccl.org

Vol. 5 No.2

September, 2019

VRIO and its role in gaining sustainable competitive advantages

Blerta Aliu

Abstract

Competitive advantage givesorganization the edge over its competitors and the ability to

generate greater value. More sustainable these advantages are, the harder it is for competitors

to neutralize them.In this paper the main focus is the defi nition of the VRIO structure and

its role in gaining sustainable competitive advantages. The analysis of this structure enables

the recognition of resources, organizational skills and the di culty of their reproduction

elsewhere.Bearing in mind that organizations nowadays operate in a dynamic and complex

business environment, it is necessary to concentrate on creating competitive advantages so

that they maintain their position. They are primarily interested in turning their strengths into

sustainable competitive advantage. Of course, one of the resources that plays a huge role in

gaining these advantages are human resources. People play a signifi cant role in the success

of any organization. But what is extremely challenging for organizations is who those people

are and how they di er depending on where they operate.I tried to illustrate the increasing

importance of human resources and their impact on the organization's performance in today's

competitive environment. Considering that such important resource in multiple situations was

neglected, I wanted to point out how muchthe organization gives priority to these resources in

such business conditions.

I hope and believe that this paper will be a good example of the fact that we need to address the

most relevant issues in order to be successful in the business world. And this can be achieved

by successful management of human factor as avery important and essential resource to the

development of the organization's strategy.

Keywords: VRIO, sustainable, competitive advantage, human resources.

Introduction

The VRIO structure makes a di erence in the performance of the organization as a

whole. Based on the analysis of this structure, the organization is likely to avoid using

non-worthwhile resources that do not contribute to its performance.

The VRIO structure is a tool used to analyze the fi rm's internal resources and identify

whether they can be a source of sustainable competitive advantages. The purpose of

the research is to identify sustainable competitive drivers in an unstable and uncertain

environment, which is considered to be one of the biggest challenges for strategists.

Purpose of the research

The main objectives of this paper:

• Using VRIO framework to analyze whether the fi rm’s resources are fi t to gain

competitive advantage,

• Achieving competitive advantages through engagement of qualitative human

resources,

• Identifying the constraining factors of the implementation of this tool.