The resource value chain : a planning framework for developing an optimal configuration of the firm

Drawing on resource-based theory (RBT), this paper develops a resource value chain framework. In common with activity-based value chains, it too is a method for representing and analyzing the firm, and identifying what may be its optimal configuration. However, as opposed to an activity-based value chain, it is specifically designed to help managers concentrate on understanding the interrelationships between the firm’s various assets and capabilities. Thus, it can be used to analyze to what extent a firm’s successes can be attributed to a certain set of resources and whether there is scope to further develop them to advance the firm’s strategies. These ideas are illustrated by analyzing a Basel II operational risk project at a large Australian retail bank.