The document discusses the resource-based view of organizations and its application to social enterprises. It defines resources-based view as the idea that competitive advantage comes from an organization's resources rather than external factors. For social enterprises, this means achieving both financial and social goals through actors in the organization who are properly motivated and aligned. Key resources include human capital, physical assets, and intellectual assets. High performing social enterprises ensure employees understand the business, are rewarded based on success, and can influence decisions. Strong leadership, motivation, and creating the right conditions for employees are important for achieving social and financial objectives.
3. DEFINITION
The resources-based view (RBV) argues that firms possess
resources, a subset of which enable them to achieve competitive
advantage, and a subset of those that lead to superior long-term
performance. Resources that are valuable and rare can lead to the
creation of competitive advantage.
That advantage can be sustained over longer time periods to the
extent that the firm is able to protect against resources imitation,
transfer, or substitution.
In general, empirical studies using the theory have strongly
supported the resources-based view.
JAY BARNEY
Dr Anis Amira Ab Rahman 2015
4. RESOURCES-BASED VIEW (RBV)
Definition
An organization’s resources & capabilities, not external environmental
conditions, should be basis for strategic decisions.
competitive advantage is gained through acquisition & value of
organizational resources
Organizations can identify, locate & acquire key valuable resources
resources are not highly mobile across organizations & once acquired
are retained
valuable resources are costly to imitate & non- substitutable
Dr Anis Amira Ab Rahman 2015
5. RESOURCES
DAFT, 1983, BARNEY, J.,1991
o Physical capital (Technology, plant, equipment, location, access to raw
material)
o Human capital (Training, expertise, judgment, intelligence, relationship
and insights of manager and workers)
o organizational capital (Organizational structure, planning, controlling
and coordinating system, informal relations among groups within the firm
and with outside groups)
WERNERFELT, B., 1984, HAFEEZ, K., MALAK, N. AND ZHANG, Y., 2002
Resources = anything that could be thought as a strength or a weakness
for a firm. Tangible and intangible assets tied permanently or semi-
permanently to the firm.
Dr Anis Amira Ab Rahman 2015
6. HOFER AND SCHENDEL, 1978, GRANT, R., 1991
MAHONEY, J. AND PANDIAN, R., 1992
Human resources
Financial resources
Intangible resources Organizational resources
Technological resources
Legal resources
Experience
Physical resources
HAFEEZ, K., MALAK, N. AND ZHANG, Y., 2002
Physical assets
Intellectual assets
Cultural assets
Dr Anis Amira Ab Rahman 2015
7. RESPONSIBILITY AS A MANAGER OF A SOCIAL
ENTERPRISE
Achieving financial goal
Achieving social goal
Who are the actors in the enterprise that
strive to achieve those goals?
Dr Anis Amira Ab Rahman 2015
8. THE MANAGEMENT CHALLENGES
To ensure that the motivations of other
people in your organisation align with your
personal motivations (as founder or manager)
Dr Anis Amira Ab Rahman 2015
10. A Caveat…
Think of your HR from the perspective of “running
a business” , not “ running a charity”
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11. A Second Caveat…
Your HR Strategy must align with your business
model and align with organizational values
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12. SOCIAL ENTERPRISE MODELS
What if you were a …
Product-based Social Business..
Tethered Social Business..
Employment- based Social Business..
Accessibility - based Social Business..
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13. Product - Based
A business / business model that provides products or services
with social benefit
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14. Employment - Based
Business that hires marginalized people in good employment
opportunities.
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15. Tethered
An enterprise started by a charity or on-profit that generates
revenue for the organization
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16. Accessibility - Based
A business that maintains a purposely low profit margin to
make their products accessible
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17. OTHER HR CONSIDERATIONS…
Who / What do you need?
How do you find the right people?
How do you define what they do?
How (and from where) do you pay them?
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20. TRAITS
Charismatic – special charm
that inspires fascination or
devotion in others
Convincing - convince other
to see their point of view
Credible – followers willing
to put trust because of leader
honesty, trustworthy &
integrity
Capable – skilled, talented,
excellent at what they do.
Inspiring those to achieve their
own high standards
Visionary – able to paint a
compelling picture of the
future and communicate it
Focused - ability to focus
their attention on specific goals
while excluding distractions
from other sources
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21. MOTIVATION: REWARD
Match the reward to the person
Match the reward to the achievement
Be timely and specific
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22. MOTIVATION: BEST REWARD
A verbal thank you for a job well done
A letter of recommendation
A good performance evaluation
A career – related gift or training
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24. THE NATUREOF HIGH PERFORMING
Individuals understand the business
Individuals are rewarded according to the success of
the business
Employees are able to influence important
organizational decision
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25. CONDITIONS
I know what is expected of me at work
I have the materials and equipment I need to do
my work right
At work, I have the opportunity to do what I do
best every day
In the last seven days, I have received recognition
or praise for doing good work
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26. My supervisor, or someone at work, seems to care
about me as a person
There is someone at work who encourage my
development
At work, my opinion seem to count
The mission/purpose of my company makes me feel
my job is important
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27. My associates are committed to doing quality work
I have best friend at work
In the last six months, someone at work has talked
to me about my progress
This last year, I have had opportunities at work to
learn and grow
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