The ascent of resource-based theory as constructive rational-behavioral integration for looking inward and outward

Purpose – This paper aims to review the rise of the resource-based theory (RBT) in light of the perennial tension between rationalism and behaviorism. The authors appraise the RBT’s strengths and its potential fault-line, the erodibility of resources. Design/methodology/approach – A nontraditional melding of the review and conceptual development methodological modes sheds light on the limitations and future prospects of the three main strands within the RBT, with a special emphasis on its rapidly developing dynamic capabilities (DC) strand. Findings – The paper proposes a framework for modeling the transformation of resources into usable highly specific assets. Research limitations/implications – The ascent of the DC strand will itself have to be revisited some day. Practical implications – The findings imply that the decline of resources should not be left to chance, but be regulated according to one’s strategic intent. Originality/value – Driven by a constructive perspective aimed at integrating theoretical coherence with practical relevance, a nontraditional synoptic tour situates the contribution of the RBT with respect to earlier approaches, in particular the evolving notion of fit.