Dealing With Uncertainty: An Analysis of VRIN Resources for SME’s Business Survival
Extant research suggests the application of resource-based view (RBV) in exploring the issue of firm growth and innovation. Crucial elements of RBV assume that valuable, rare, inimitable and non-substitutable (VRIN) resources are necessary for an organisation to gain competitive advantage, especially in an uncertain business environment. This study focuses on employees’ performance and the implementation of human resource management practices as important tools for survival in a challenging time. A content analysis is employed based on interviews data of managers of small and medium hotels in three popular islands in Malaysia. The analytical results are contradictory to the assumptions of VRIN resources. Island hotels are found to own a uniqueness in its characteristics that influence the hotels’ strategy to survive. Findings of this study call for future exploration of tourism industry sustainability planning, mainly to address the many challenges of uncertain business environments through effective resources management.
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