Predicting Firm Performance through Resource Based Framework

Mohammad Adnan, Tasawar Abdulhamid, Babar Sohail


This study aims to review the key concept of Resource Based View (RBV) that is broadly acknowledged in strategic management, and analyze their impact on Firm Performance by using the VRIN and Non-VRIN Resources. Based on experts’ theory we develop hypotheses and a conceptual framework to investigate the relationship between firm’s resources and its performance to attain the sustainable competitive advantage. In spite of this perception, few empirical studies test these hypotheses at the conceptual level. The paper presents empirical evidence from a survey of different industrial firms in Pakistan. Through random Sampling, the data was collected from Top Management, CEOs and Senior Executives from the top companies in Pakistan. The data has been collected through questionnaires and statistically evaluated by SPSS software. All Data analyzed through Pearson correlation coefficient, linear regression, one way analysis of variance (ANOVA). The finding showed that VRIN Resources have a positive significant relationship to improve firm’s performance. While Non-VRIN Resources and performance have an insignificant relationship to each other. This study closes with future recommendations that how this study have important academic and practitioner implications.

Keywords: Resource Based View (RBV), VRIN Resources, Non-VRIN Resources, Firm Performance

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ISSN (Paper)2222-1905 ISSN (Online)2222-2839

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