‘Reductionistic’ and ‘Holistic’ Views of Resource-Based Theory: A Review of the Literature

Mona Rashidirad; Ebrahim Soltani; Hamid Salimian

doi:10.1002/jsc.2037

‘Reductionistic’ and ‘Holistic’ Views of Resource-Based Theory: A Review of the Literature

Mona Rashidirad, Ebrahim Soltani, Hamid Salimian

University of Brighton

Research output: Contribution to journal › Article › peer-review

Abstract

Resource-Based Theory (RBT) has become an acceptable theory to describe the importance of resources and capabilities in generating high performance. Our literature review shows that there are two approaches to RBT: reductionistic and holistic. Adopting a reductionistic approach has led to an inconsistency in the findings about the relationship between RBT constructs (i.e. resources and capabilities), and their impact on performance. This paper proposes that a holistic approach to RBT has a greater power to explain the complex interrelationships between dynamic capabilities, firm’s resources and competitive strategies. Through a critical review on both views, this study highlights areas in which future research is needed for greater understanding of the co-impact of a firm’s internal factors and competitive strategies on performance.

Original language	English
Pages (from-to)	509-525
Number of pages	17
Journal	Strategic Change
Volume	24
Issue number	6
DOIs	https://doi.org/10.1002/jsc.2037
Publication status	Published - 17 Nov 2015

Bibliographical note

This is the peer reviewed version of the following article: Rashidirad, M., Soltani, E. and Salimian, H. (2015), ‘Reductionistic’ and ‘Holistic’ Views of Resource-Based Theory: A Review of the Literature . Strat. Change, 24: 509–525, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1002/jsc.2037/full. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Access to Document

10.1002/jsc.2037Licence: Unspecified

2015 Rashidirad Reductionist and Holistic.pdfAccepted author manuscript, 277 KBLicence: Unspecified

Hamid Salimian
- H.Salimianbrighton.acuk
- School of Business and Law - Senior Lecturer
- Business and Economic Change Research Excellence Group
Person: Academic

Cite this

@article{86828eb519854de8adafbfe88cfb1080,

title = "{\textquoteleft}Reductionistic{\textquoteright} and {\textquoteleft}Holistic{\textquoteright} Views of Resource-Based Theory: A Review of the Literature",

abstract = "Resource-Based Theory (RBT) has become an acceptable theory to describe the importance of resources and capabilities in generating high performance. Our literature review shows that there are two approaches to RBT: reductionistic and holistic. Adopting a reductionistic approach has led to an inconsistency in the findings about the relationship between RBT constructs (i.e. resources and capabilities), and their impact on performance. This paper proposes that a holistic approach to RBT has a greater power to explain the complex interrelationships between dynamic capabilities, firm{\textquoteright}s resources and competitive strategies. Through a critical review on both views, this study highlights areas in which future research is needed for greater understanding of the co-impact of a firm{\textquoteright}s internal factors and competitive strategies on performance.",

author = "Mona Rashidirad and Ebrahim Soltani and Hamid Salimian",

note = "This is the peer reviewed version of the following article: Rashidirad, M., Soltani, E. and Salimian, H. (2015), {\textquoteleft}Reductionistic{\textquoteright} and {\textquoteleft}Holistic{\textquoteright} Views of Resource-Based Theory: A Review of the Literature . Strat. Change, 24: 509–525, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1002/jsc.2037/full. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.",

year = "2015",

month = nov,

day = "17",

doi = "10.1002/jsc.2037",

language = "English",

volume = "24",

pages = "509--525",

journal = "Strategic Change",

issn = "1086-1718",

number = "6",

}

TY - JOUR

T1 - ‘Reductionistic’ and ‘Holistic’ Views of Resource-Based Theory: A Review of the Literature

AU - Rashidirad, Mona

AU - Soltani, Ebrahim

AU - Salimian, Hamid

N1 - This is the peer reviewed version of the following article: Rashidirad, M., Soltani, E. and Salimian, H. (2015), ‘Reductionistic’ and ‘Holistic’ Views of Resource-Based Theory: A Review of the Literature . Strat. Change, 24: 509–525, which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1002/jsc.2037/full. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

PY - 2015/11/17

Y1 - 2015/11/17

N2 - Resource-Based Theory (RBT) has become an acceptable theory to describe the importance of resources and capabilities in generating high performance. Our literature review shows that there are two approaches to RBT: reductionistic and holistic. Adopting a reductionistic approach has led to an inconsistency in the findings about the relationship between RBT constructs (i.e. resources and capabilities), and their impact on performance. This paper proposes that a holistic approach to RBT has a greater power to explain the complex interrelationships between dynamic capabilities, firm’s resources and competitive strategies. Through a critical review on both views, this study highlights areas in which future research is needed for greater understanding of the co-impact of a firm’s internal factors and competitive strategies on performance.

AB - Resource-Based Theory (RBT) has become an acceptable theory to describe the importance of resources and capabilities in generating high performance. Our literature review shows that there are two approaches to RBT: reductionistic and holistic. Adopting a reductionistic approach has led to an inconsistency in the findings about the relationship between RBT constructs (i.e. resources and capabilities), and their impact on performance. This paper proposes that a holistic approach to RBT has a greater power to explain the complex interrelationships between dynamic capabilities, firm’s resources and competitive strategies. Through a critical review on both views, this study highlights areas in which future research is needed for greater understanding of the co-impact of a firm’s internal factors and competitive strategies on performance.

U2 - 10.1002/jsc.2037

DO - 10.1002/jsc.2037

M3 - Article

SN - 1086-1718

VL - 24

SP - 509

EP - 525

JO - Strategic Change

JF - Strategic Change

IS - 6

ER -

‘Reductionistic’ and ‘Holistic’ Views of Resource-Based Theory: A Review of the Literature

Abstract

Bibliographical note

Access to Document

Fingerprint

Profiles

Hamid Salimian

Cite this