Before revision: "Capability management" may be regarded as both an extension and an alternative to the RBVF, that asserts that it is not control over physical resources that is the basis for firm profitability but that "Companies, like individuals, compete on the basis of their ability to create and utilize knowledge;...".Leonard, 1998 In short, firms compete not on the basis of control of resources but on the basis of superior Know-How.
After revision: "Capability management" may be regarded as both an extension and an alternative to the RBVF, which asserts that it is not control over physical resources that is the basis for firm profitability but that "Companies, like individuals, compete on the basis of their ability to create and utilize knowledge;...".Leonard, 1998 In short, firms compete not on the basis of control of resources but on the basis of superior Know-How.