A firms resources and capacities are the unique skills and assets it possesses

Resources are assets which an organization owns. The three main types are physical, tangible and human. Capabilities are complex patterns of skill in utilizing resources to achieve a desired end result. Resources and capabilities are core to an organizations competitive advantage.

My view is that resources which are available to a business, provide the capability for that business to achieve its goals. However there is not enough emphasis on the linkage between the physical management of these resources which enable a business to realise its capabilities. In order to gain and then sustain competitive advantages, resources and capabilities both need to be well managed. If a business invests in an accounting software as it is more efficient than its competitors method, then it is still the management of this capability or software that will lead to greater competitive advantage. The resource or capability alone do not create competitive advantages.

Abdulla Al-Dilimi

8/25/2015 02:35:30 pm

These resources can include human labor which the company employs, also they are the property, plant and equipment that are needed for business operations and add value. Capabilities add value through the firms intangibles such as corporate culture and ability to adapt and grasp concepts.

Pulaalofa Saulo Haulagi

8/27/2015 08:40:08 am

In addition to the above comments, resources are what is used to obtain the results from the performed actions. They can be employees group size, knowledge, company equipment, network, etc. Capability on the other hand, are basically the skill(s) available through the company to perform certain actions. A firm's resources identifies its capabilities. Resources are the productive assets owned by the firm and capabilities speak to what the firm can do with those resources. Why the firm needs them? and What resources the firm's capabilities are limited.

Evan Tozer

9/6/2015 01:21:14 pm

Resources are what a company uses to produce good/services. The capabilities a company has are the way the company utilizes and uses these resources most efficiently. Various companies have various different capabilities. The companies with capabilities that allow for changing environments and the ability to change what is being made with the same resources are said to be more adaptable and capable. These are normally smaller firms that are more flexible.

Kendal Stratford

9/8/2015 10:20:49 am

Resources tend to refer to the assets or both tangible and intangible means that are within reach of a company. As opposed to capabilities which are incline to be focused more on skills or ideals that are achievable in either an external or internal capacity for a business. When differentiated and analysed correctly both resources and capabilities can be fully utilised to push a company towards its utmost form for that point in time. However many barriers can arise which can limit and withhold businesses from completely exploiting the resources and capabilities within their market.

Priscilla Khang

9/8/2015 11:53:35 am

In simple terms, a resource is what the company already owns and a capability is what the company can do with its existing resources. There are various types of resources/inputs such as: financial, physical, human, intangible, tangible, structural/cultural. These resources then interact with company’s capabilities such as its people and processes. Capabilities are regular, predictable and sequential activities.

Ryan Lindborg

9/10/2015 02:58:24 pm

Resources and capabilities are two types of business assets that exist within any organization. You can differentiate between resources and capabilities by the specific traits and characteristics that define each term. Resources are money-derived assets that can be bought and paid for, i.e. a vehicle bought for the purpose of transport can be considered a resource.
In contrast, a capability is an asset that is developed with time. A capability is what the business is able to achieve with the assets at their disposal. For instance, an integrated IT system that is able to reduce costs through better managerial tactics is considered a capability that a business can possess.

9/13/2015 07:24:57 am

Resources and capabilities are two distinct and fundamental assets that exist inside a business or organisation.

Resources are money derived, in the sense that they are purchased or traded for. Simply, if you can purchase and item and 'use' it, it is a resource. For example, a book that is purchased for a business must be considered an asset.

Capabilities are learned over time, and are a skill or competence as opposed to a simple tangible resource. Capabilities cannot be immediately acquired, but are developed and honed via experiences and development of skills. A resource can become a capability if it is used for business development - for example, the aforementioned book could aid in developing a capability if it improved a skill set or competence of a business.

Gloria AH lin

9/13/2015 05:03:47 pm

Resources are stock or supply of money, materials, employee and other assets drawn by a person/organization in order to function effectively. It could also mean they are collective wealth of a country. Capability is the quality of being capable. They can be linked through resources being inputs into a firm’s production process and capability as capacity of an integrated set of resources to integratively performs a task or activity.

Kate Bull

9/13/2015 06:09:06 pm

Resources and capabilities are both classed as a companies assets however they differ in nature. Resources can be used to refer to machinery, knowledge, employees, property and other assets that the company uses to make money from actions carried out. Capabilities within a company are learned over time not acquired – a company can increase its capabilities using it resources.

Jacqueline Ho

9/14/2015 02:47:08 am

A company's capabilities are commonly known as the skills that are available throughout the company to perform certain actions. These could include product management, pricing management and customer relationship management etc. On the contrary, resources are tangible, intangible or human assets that a company possesses. Such including brand equity, retail locations or customer information system etc.

Mana Mckenzie

9/15/2015 08:20:12 pm

Resources identify an organisations capabilities, Resources are assets owned by an organisation and capabilities are what they do with them. Capabilities exist when a specific set of resources are combined to complete a task. It doesn't depend on the existence of the two but how they are combined and managed.

There is a lot of difference between resources and capabilities. Resources can be many but it depends on the capability of an individual to find the right one. It is essential to note the difference and understand how to use them.

This blog post really grabbed my attention. With that said I am going to subscribe. Therefore I will get more updates on what you have to say. Please keep writing as I want to learn more.

This website was... how do you say it? Relevant!! Finally I've found something that helped me. Appreciate it!

This is about International Business and Global Strategy. There are two terms which uses by authors resources and capabilities. These both terms have different meanings. The term resources are often more static in nature while capabilities are more dynamic

What a great blog, thank you for letting me comment on it.

Dany "Fucking All Star" Heatley

9/30/2021 02:23:34 pm

I think of myself as a resource. Who can say that they scored 50 in 07? I actually scored 50 in 06 as well so back to back seasons of 50 goals. Pretty awesome right? No wonder they call me the fucking all star. Whats about with all this Covid stuff anyways? I just want to go to bars and drink til i have the courage to talk to a 9/10, but wuss out and get black out drunk, passed out on the sidewalk. its just the little things in life, ya know?
-Heater 50 in 07

Leave a Reply.

Layman's terms

Key terms and concepts in international business clarified in plain English. Learn more  with Featherlight Quizzes (120 questions and answers about international business and strategy) 

Archives

December 2019
May 2017
March 2017
August 2015
July 2015
May 2015


Categories

All



RSS Feed