The VRIO framework is a tool for internal strategic analysis, developed from the resource-based view of the firm and most closely associated with the work of Jay Barney, that evaluates a company's resources and capabilities against four criteria: whether a resource is Valuable, Rare, costly to Imitate, and whether the Organization is set up to exploit it. A resource that satisfies all four conditions is considered a potential source of sustained competitive advantage, while a resource that fails one or more of the earlier criteria offers a weaker or merely temporary advantage. The framework is widely taught as a structured way of assessing which of a firm's internal resources and capabilities are genuinely strategic rather than simply useful.
Facts
Core ClaimVRIO evaluates a firm's resources and capabilities by asking whether each is valuable, rare, costly to imitate, and backed by the organization, to determine its competitive potential. 1 Cross-Tradition Connections
Associated With
VRIO is Jay Barney own operationalization of resource-based view theory.
Sources
1. Wikipedia, VRIO Framework
WikipediaWikipedia, VRIO lead sectionQuote, Wikipedia, VRIO lead section
The VRIN format was first proposed by Jay Barney in 1991 and made available as VRIO in 1995.
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