Organizational Resources and Sustained Competitive Advantage of Cooperative Organizations in Malaysia

Abstract

Resource-based view (RBV) theory posits tangible organizational resources are vital for superior business performance and sustainable competitive advantage ( Galbreath, 2004 , Fahy, 2002 ). Lippman and Rumelt (2003) assert firms’ financial or physical assets can generate high value for competitive advantage with minimal threat from replication. Firms should focus on identifying and exploiting resources to neutralize threats. This paper examines the effects of organization's tangible resources on cooperative's success. Content analyses of annual reports of Malaysian cooperatives testify tangible internal resources are a viable business strategy for sustained competitive advantage positively impacting performance.