The importance of resources and capabilities for the BSC: A conceptual synopsis

Abstract

Certain organisations maintain their competitive advantage, despite the enormous environmental turbulence in the current economic and social context. Due to this environmental complexity, managing resources and dynamic capabilities is crucial for organizations. To guide the organisations, this study assumes that besides monitoring, the Balanced Scorecard (BSC) plays a role in monitoring the organisations strategy. Recently [1] argued that strategy performance should be measured by implementing indicators, which makes the BSC a strategic instrument. We intend to characterize if the organizations with the BSC are based on valuable, rare, hard to imitate and irreplaceable resources according to the Resource Based View (RBV). For this purpose, interviews will be conducted with the largest exporters in Portugal. Due to the external turbulence, they are subjected to, they make up the target audience indicated for the study. These organizations seek to differentiate themselves by configuring their resources and competencies to gain a competitive advantage. This research thus fills a gap in the literature to the extent that it seeks to identify the potential of the BSC as a useful tool for boosting resources and capabilities. This study aims to understand how certain companies that use the BSC methodology gain competitive advantages by configuring their resources and capabilities. In short, the aim is to increase the knowledge about the causes that lead some organizations to achieve competitive advantages.