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VRIN Framework

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See Also

competitive advantage [3] sustainable competitive advantage [4] resource [5] capability [6] ability [7]

Definition

Applying Barney's (1991) VRIN framework can determine if a resource is a source of sustainable competitive advantage. To serve as a basis for sustainable competitive advantage, resources must be --

  • valuable -- meaning that they must be a source of greater value, in terms of relative costs and benefits, than similar resources in competing firms
  • rare -- rareness implies that the resource must be rare in the sense that it is scarce relative to demand for its use or what it produces
  • inimitable -- it is difficult to imitate
  • nonsubstitutable -- other different types of resources cannot be functional substitutes

The criteria of the VRIN Framework clearly rules out best practices as a source of competitive advantage. If other firms can easily understand and copy a capability, it is not a source of advantage.


Source URL:https://managingresearchlibrary.org/glossary/vrin-framework#comment-0

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[1] https://managingresearchlibrary.org/knowledge/blog/lexicon [2] https://managingresearchlibrary.org/about [3] https://managingresearchlibrary.org/glossary/competitive-advantage [4] https://managingresearchlibrary.org/glossary/sustainable-competitive-advantage [5] https://managingresearchlibrary.org/glossary/resource [6] https://managingresearchlibrary.org/glossary/capability [7] https://managingresearchlibrary.org/glossary/ability