| Abstract: | The resource‐based view has provided valuable insights into sources of competitive advantage, but little attention has been paid to the processes of resource creation. To address this shortcoming, this paper reviews the strategy process literature, explaining the theoretical positions and assumptions that underpin different types of process. It then examines the mechanisms by which resources have been found to be created; luck, resource picking, internal development and alliances. Next, a series of resource‐creation pathways that illustrate the different routes firm inputs might take on the way to becoming unique and valuable resources is developed. These pathways are also discussed in terms of the strategy processes through which they are developed, and the appropriate resource‐creation processes. The review is then extended with the introduction of two contingent variables ? task complexity and environmental stability – and the resource‐creation processes that are congruent with different combinations of these variables are explored. From this review, one is able to identify the combination of complex task and stable environment likely to be the most conducive to resource creation. Finally, the paper explores opportunities that firms might have to engineer stability and complexity in some parts of their operations with the aim of developing a resource‐based advantage. |
