Adding value to the VRIO framework using DEMATEL

Abstract

Strategic management is fundamental for organizational development. It plays a critical role in the accomplishment of business performance and, as result, in the achievement of competitive advantage. Currently, the increased use of strategic management has intentional impacts on a company’s performance and differentiation, specifically in a globalized market. From this perspective, organizational evaluation is important, as well as the development of strategic management frameworks that can guarantee the achievement of sustainable competitive advantages for organizations. One of the most well-known frameworks for organizational resource assessment is the Value, Rarity, Inimitability and Organizational-oriented (VRIO) framework. It is worth noting, however, that this tool is not without limitations (e.g., how to identify and weight resources and capabilities in the evaluation process), which have prevented progress. Hence, this dissertation aims to enhance the VRIO framework, allowing for its quantification in a transparent and robust manner. To reach this aim, the VRIO framework is combined with the DEcision-MAking Trial and Evaluation Laboratory (DEMATEL) method, and a reallife application is carried out. The incentives and shortcomings of this structured evaluation model are also analyzed and discussed.