Which model emphasizes a firm’s ability to modify its resources for competitive advantage?

The Dynamic Capabilities Perspective is centered on a firm's ability to adapt and reconfigure its resources and capabilities in response to changing market conditions and competitive landscapes. This model suggests that the capacity to innovate, learn, and respond quickly to changes is what differentiates successful firms from their competitors. By continuously evolving their resource base—whether through technology, knowledge, or organizational processes—companies can maintain a competitive advantage over time.

In contrast, while the Resource-Based View (RBV) also focuses on resources, it primarily emphasizes the importance of the resources a firm possesses at a given time rather than the ability to modify them in reaction to external changes. Although RBV highlights valuable, rare, inimitable, and non-substitutable resources as determinants of competitive advantage, it does not underscore the dynamic aspect of resource modification as explicitly as the Dynamic Capabilities Perspective does.

The Competitive Forces Model focuses on industry structure and competitive forces that shape market competition rather than the internal capabilities of a firm to adapt and change its resources. Meanwhile, Value Chain Analysis examines the specific activities within a company that create value, but does not directly address the dynamic nature of resource modification for competitive advantage. Overall, the emphasis on active resource modification in a rapidly changing environment categorizes the Dynamic Cap