Vol 3 No 1 (2018)
Articles

Operationalization of Internal Analysis Using the VRIO Framework: Development of Scale for Resource and Capabilities Organization (Case Study: XYZ Company Animal Feed Business Unit)

Widya Ariyani
School of Business. Bogor Agricultural University Jl. Raya Pajajaran, Bogor 16151
Arief Daryanto
School of Business. Bogor Agricultural University Jl. Raya Pajajaran, Bogor 16151
Sahara .
Departement of Economic. Faculty of Economics and Management. Bogor Agicultural University. Jl. Lingkar Kampus-Kampus IPB Darmaga, Bogor 16680
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Keywords
  • Internal analysis,
  • Resource based view,
  • Operationalizing the VRIO scale,
  • Value chain Analysis,
  • Animal feed business unit

Abstract

Finding the source of competitive advantage has become an essential area in the research of strategic management. One of the methods commonly used to find out the competitive advantage is by conducting internal analysis using the VRIO framework. The weaknesses of said framework are that they cannot be used to determine how strong the competitive advantage of the company can be managed by them. Therefore the objectives of this paper are to create assessment scales to determine how well the resources or capabilities has been managed by the company in a VRIO framework. To elaborate on the operationalizing of VRIO scale, a case study in the animal feed business unit of XYZ Company was used.

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