The emergence of resource-based view of the firm in strategic management during 1980s has become a dominant framework and it shifts our attention from the industry to the firm level as a prime determinant of firms’ profitability. The theory is still in the evolving phase and its epistemology is getting richer day-by-day. The paper traces the roots of resource-based view, elucidates its economic logic and presents the critics’ views. In addition, the theory’s empirical assessment is presented and the methodological concerns of the research are discussed. Finally, its managerial significance is elaborated and a conclusion is drawn with regard to its contribution in the field of strategic management.

Since the advent of the Resource-Based View (RBV) of the firm in strategic management literature, much has been debated, written and tested to validate this theoretical perspective. During its long journey, we have also witnessed the proliferation of different domains like dynamic capability (Teece et al., 1997), strategic leadership (Finkelstein and Hambrick, 1996) and knowledge-based view (Kogut and Zander, 1992) within the RBV framework. Breaking the influence of Porter’s (1980) structure-conduct-performance (S-C-P) paradigm and establishing itself as a stand-alone model of competitive advantage is not an easy task to the RBV scholars, yet this stream of research has shown an immense potential with regard to the strategic implication of the firm’s resources. Though RBV is still in its infancy, it is imperative for the strategy scholars to assess its past so as to embark its future path. Keeping this need in mind, this paper traces the origin of RBV, elicits its underlying economic rationale and presents the critic’s views. Finally, we also find the answers as to what extent the empirical tests support the theory and how far it helps managers in crafting strategies.

Business Strategy Journal, Post-Merger Corporate Performance, Mergers and Acquisitions Transactions, Egyptian Technology Sector, Economic Reforms, Egyptian Companies, Financial Accounting Standards Board, Conglomerate Acquisition, Data Envelopment Analysis, Construction Sectors, Data Analysis.