The ascent of resource-based theory as constructive rational-behavioral integration for looking inward and outward

This paper aims to review the rise of the resource-based theory (RBT) in light of the perennial tension between rationalism and behaviorism. The authors appraise the RBT’s strengths and its potential fault-line, the erodibility of resources.

A nontraditional melding of the review and conceptual development methodological modes sheds light on the limitations and future prospects of the three main strands within the RBT, with a special emphasis on its rapidly developing dynamic capabilities (DC) strand.

The paper proposes a framework for modeling the transformation of resources into usable highly specific assets.

The ascent of the DC strand will itself have to be revisited some day.

The findings imply that the decline of resources should not be left to chance, but be regulated according to one’s strategic intent.

Driven by a constructive perspective aimed at integrating theoretical coherence with practical relevance, a nontraditional synoptic tour situates the contribution of the RBT with respect to earlier approaches, in particular the evolving notion of fit.