ORGANISATIONAL THEORY

Organisational Theory



Organisational Theory

Usage of Resource-based theory

Through the evolution of time, the resource-based theory has become a widely acceptable research viewpoint, constructing the relationship between resources and performance. The restructuring and integration of the resource generate the resources uniqueness that can better respond to the requirements of the changing surrounding environment and thus increase the chance for better performances. The theory dates back to 1957 when Selznick mentioned the term organization's distinctive competence. In 1959, Penrose, deducting her economic theory, puts forward the "Theory of the Dynamic Growth of the Firm" and defined Distinctive Competence as an organization, through the distribution and the use of resources, obtaining economic rents. This concept later became the basis of resource-based theory. (Acedo, 2006, pp. 621-636)

In 1984, Wernerfelt, leading the mainstream strategic management, proposed a resource-based idea that the "internal" organizational resources and the "external" commodity markets together form a complementary strategy. For the industry, if an organization has the internal distinctive resource of value, rarity, inimitability, non-substitutability, then it can introduce externally advantageous goods and services, and create competitive advantage or sustained competitive advantage. Resource-based theory literature suggests that the construct of human resources is indicated as intrinsic characteristics of an organization, or as causal ambiguity, otherwise known as isolating mechanism. However, it requires further clarification and exploration as to why the resource heterogeneity and distinctiveness can improve enterprise performance, competitive advantage, or organizational effectiveness. (Barney, 1991, pp. 99-120)

According to the above, when the basic and the professional capabilities of the academic trained student resources satisfy the industry's demand for the student resources, the suitability of the supply and demand of human resources between industry and school will be reflected in the student employment rate. To induce its reasons, through the two-way three-party, the academic teachers, students, and industry managers, contribution, the suitable supply and demand in human resources can be achieved. This is why the basic and the professional capabilities of the academically trained student resources should have the quality of value, rarity, inimitability, and non-substitutability. The basic and the professional competitiveness of the academic trained student resources is in line with the industry manager's demand for this student, because the human resources preference requirements are in line with the resource quality of value, rarity, inimitability, non-substitutability. (Bennis, 2000, pp.105-122)

According to the above, this study, applying the resource-based theory, under the premise of the core competence of human resources that constructed under the industry-school exchange, examines whether the student resources established by academic teachers can meet the industry's demand for student resources. Therefore, in the light of this theory, Kodak can easily utilize its own resources for improving their performance and enhancing their market value which decreased in the 80s due to the arrival of competitors. As, Kodak is one of the biggest film production companies, and it has huge resources as well in terms of capital and employees, so the adoption of resource based theory will not be a problem for ...