Search results

Part I of this chapter applies the principles of the philosophy of science and the derived scientific method to analyze the foundational concepts and core proposition of the Resource-Base View (RBV) as popularized by Barney (1986, 1991, 1997). This analysis identifies seven fundamental conceptual deficiencies and logic problems in Barney's conceptualization of “strategically valuable resources” and in Barney's VRIO framework for identifying strategically valuable resources that can be sources of sustained competitive advantage. Three problems – the Value Conundrum, the Tautology Problem in the Identification of Resources, and the Absence of a Chain of Causality – relate to the RBV's and VRIO's failure to provide an adequate conceptual basis for identifying strategically valuable resources. The Uniqueness Dilemma, the Cognitive Impossibility Dilemma, and an Asymmetry in Assumptions about Resource Factor Markets result in an inability of the VRIO framework to support identification of resources that can be sources of sustained competitive advantage. More fundamentally, the core proposition of the RBV – that resources that are strategically valuable, rare, inimitable, and organizationally embedded are sources of sustainable competitive advantage – is argued to result directly in the Epistemological Impossibility Problem that precludes use of the scientific method in RBV research. This chapter argues that until these conceptual deficiencies and logic problems are recognized and remedied, the RBV – in spite of its current popularity – is and will remain theoretically sterile and incapable of contributing in any systematic way to the development of strategy theory.

Part II of this chapter then suggests how foundational concepts developed within the competence perspective on strategy provide essential remedies for the identified deficiencies and problems in the RBV – and thereby provide a more conceptually adequate basis for representing the nature of firms in the scientific study of their interactions and competitive outcomes.

This chapter is an up-to-date survey of the state-of-the art in consumer demand analysis. We review (and evaluate) advances in a number of related areas, in the spirit of the recent survey paper by Barnett and Serletis (2008). In doing so, we only deal with consumer choice in a static framework, ignoring a number of important issues, such as, the effects of demographic or other variables that affect demand, welfare comparisons across households (equivalence scales), and the many issues concerning aggregation across consumers.

Purpose: Consumer acceptance is considered the most important factor in functional food success and is given top priority in new product development. This study focussed on finding factors that influence consumer perceptions about active food and the pattern of active food consumption. This chapter aims to provide a deeper understanding of taste trading based on a consumer decision-making framework.

Research Methodology: Cross-sectional consumer data were collected by floating G-Doc containing the questionnaire which was supposed to be answered by people according to their behaviours, preferences, knowledge regarding functional foods etc. It contained questions about their income, gender, preference towards functional foods, factors affecting decision-making while purchasing functional foods etc.

Results of the Study: The findings suggest that the consumers' attitude towards functional foods was mainly influenced by the quality and suitability of the product. Purchase intent was found based on age, literacy of population, income and health benefits of active foods. Awareness of functional foods and their price significantly affected the purchase of functional foods. Most people were willing to spend more on functional foods in the future regardless of the taste and provided high quality and product suitability.