Posted on : August 30, 2018
Views : 2
Category : Strategy
The model of profit appropriation in resource-based theory has assumed that shareholders have a unique claim on the profits generated by a firm. shows that if this is the case, access to all of a firm’s other resources will occur through fixed claim/complete contingent claims contracts, and that the resources acquired through these contracts cannot be expected to be a source of economic profits for a firm. In this setting, it is not clear where the profits that are supposed to be distributed to shareholders come from. All this suggests that resourcebased theory needs to adopt models of profit creation and appropriation that recognize the possibility of multiple claimants on a firm’s profits, i.e., some sort of stakeholder perspective. The elements of this stakeholder resource-based theory are described, together with the implications of this theory for traditional resource-based theory and some current stakeholder theories (Professor Jay Barney, University of Utah). Source: insead.edu