What must a firm do to capture the value of its resources effectively according to VRIO?

To effectively capture the value of its resources according to the VRIO framework, a firm must organize its resources and capabilities. The VRIO framework, which stands for Value, Rarity, Imitability, and Organization, underscores the importance of not only having valuable and rare resources but also organizing them in a way that enables the firm to fully leverage these advantages.

Simply having valuable resources is insufficient; the firm needs to structure its operations, processes, and strategies to maximize the potential of these resources. This organization encompasses aligning human resources, systems, and processes to ensure that they work together effectively to create competitive advantages. Without proper organization, even valuable resources may go untapped or underutilized, diminishing their potential impact on the firm’s performance.

In contrast, while investing in marketing, developing external partnerships, and reducing operational costs can be components of a broader strategy, they do not directly address the core principle of the VRIO framework, which is the necessity for proper organization to harness the power of a firm's resources and capabilities effectively. Thus, organization is the key to unlock the full potential of what the firm possesses.