Relationship of mutual dependence between capabilities and firm size

research recommendation for Resource-based view

Abstract

As Resource-based view theory and dynamic capabilities theory, sustainable competitive advantage is brought by firm-specific intangible assets represented “know-how" developed in the firm. In contrast, tangible assets are imitable, so it is said competitive advantage by these assets is short-term. But, when firm size is big, these tangible assets may yield another organizational capabilities only as an entry wall. In this study, I pay my attention to the tangible resources which resource-based theory overlooked and propose a research agenda about mutual dependence between capabilities and firm size.