Discuss and explain the conceptual link between the principles of Essay

Discuss and explain the conceptual link between the principles of effectual entrepreneurship and the resource-based view of strategy - Essay Example It might represent an essential change in philosophy for some companies, so strategists must be skilled to expect and constructively reply to issues and questions as they arise (Foss 2011). In the long run, strategic management is about maintaining and creating a sustained competitive advantage (SCA). Strategies might be demarcated as plans for developing SCA. Therefore, SCA is the main thing that scholars of strategic management seek to clarify. It is defined as the organizational ability to build and appropriate more value than the opposition on a continuous basis. However, it must be noted that a firm having an SCA does not mean superiority in economic performance; instead SCA is a possibility for such a performance, which might or might not be realized. Entrepreneurial organizations vary in form and constituent from their enormous and well-established counterparts. Alternatively, they are viewed as more practical, better risk-takers, and not as much official than their big counterparts. Instead, they suffer or at least appear to, from their distinctive features of smallness and newness. Being small and new, they time and again lack the necessary resources to develo p and survive competitive advantage. We can examine the exclusive characteristics of the entrepreneurial organizations through two distinct theoretical lenses, namely the resource-based view and resource dependence theory (Peng 2001). In the present version, the resource-based view of strategy is considered by finding the potential to build and appropriate more value than the opposition to the resource benefits of organizations and the features of these sources. It focuses on competitive advantage created by the organization from its distinctive set of resources. An organization is said to possess a competitive advantage when it is executing a value constructing a strategy that is not executed by any potential or current