Dollinger index

Resources and Capabilities 61

DISCUSSION QUESTIONS

1. What are the characteristics of a good theory? What makes a theory practical? How can an
   entrepreneur use the resource-based theory for his or her advantage?


2. Explain the problems we would have if there was a “law of entrepreneurship.”


3. How does each of the four attributes of resources contribute to SCA?


4. What is the difference between competitive advantage and sustainable competitive advan-
   tage?


5. How can an organization’s culture be a source of SCA?


6. Describe how each of the six types of resources can be a source of SCA. What are the
   strengths and weaknesses of each type?


7. Why are personality traits not sufficient for evaluating and predicting successful entrepre-
   neurship?


8. Describe the sociological approach to entrepreneurship. How can this approach be used to
   promote more entrepreneurship within the economy?


9. If immigrants are a major source of entrepreneurship in an economy, why do most coun-
   tries limit the number of immigrants they allow in each year?


10. How are entrepreneurs behaviorally different from managers? When can we expect entre-
    preneurs to behave managerially? When can we expect managers to behave as entrepre-
    neurs?

EXERCISES

1. Research a company and inventory its resource base by using the six types of resources dis-
   cussed in the chapter. Evaluate these resources in terms of the four attributes of resources

KEY TERMS

Ach (need for achievement)
Beagleism
Capabilities
Characteristic ambiguity
Competitive advantage
Dispositional optimism
Dynamic improvement capability
Entrepreneurial capability
Entrepreneurial system
Externals
Functional capability
Imperfectly imitable (hard to copy)
Industry path
Internals
Linkage ambiguity
Locus of control
Negative displacement

Nonsubstitutability

Organizational culture

Positive pull

Positive push

PROFIT model

Rare resources

Relationship capital

Resource

Resource-based theory

Resource-based view (RBV)

Risk-taking propensity

Sentry path

Skills

Sustainable competitive advantage (SCA)

Valuable resources

VRIN model