A New approach to Resource based view in corporate level strategy in Parent Companies

Subject Areas : مدیریت

Seyed Mohammad Erabi ¹ (Allame Tabatabaei University)
Afshin Fattolahi ² (Allame Tabatabaei University)
Abdollah Asadzadeh ³ (MSc Graduate of Industrial Engineering, University of science & Technology of Mazandaran-Babol (USTMB))

Received: 2009-05-23 Accepted : 2009-07-15 Published : 2009-11-01

Keywords: Resource Based View, Parent companies, Parenting Advantage Chain, Parenting Position Matrix, Corporate Level Strategy,

Abstract :

This paper enriches the resource based view in corporate level strategy and while centralizing on parent companies, replaces the competitive advantage concept- which is a key issue in defining business level strategy- with a parallel term in corporate level strategy named parenting advantage and presents it in parent corporate level. Then, it concentrates on internal characteristics of parent companies as the key source of parenting advantage and suggests five advantage-creating characteristics. It also discusses the main role of parenting advantage as a guideline for making twofold decisions at corporate level strategy including portfolio (investment basket), control decisions, and subsidiary enterprise guidance. All these decisions should be assessed on the basis of their effects on developing or sustaining parenting advantage. Finally, competitive position matrix is extended to parenting position matrix which can be applied in parent companies