For your final paper, please choose either th

Running head: RESOURCE BASED VIEW MODEL 1

Resource based View Model in Healthcare

Arthur Barnes Jr.

Husson University

RESOURCE BASED VIEW MODEL 2

Resource based View Model in Healthcare

Introduction

Barney introduced the resource-based viewpoint (RBV) in 1991 to deal with international

business issues. Strategic management and International Business (IB) have both benefited greatly

from RBV's emphasis on the firm's internal environment and use of SWOT analysis. This view

also assumes that a company's unique resources and abilities allow it to perform better than its

counterparts in the same industry. For example, tangible and intangible resources can be found in

a company. Resources and capabilities can be used interchangeably. There are many functional

areas where resources and capabilities are integrated and developed (Arbab Kash et al., 2020).

These include distribution, human resources, marketing, manufacturing, and R&D, among others.

Resource based strategy look on the resources within the firm and focus on how to use the

resources to gain competitive advantage in the market and because the resources are valuable, rare

and non-substitutable. The strategy is applied in all industries including the healthcare where the

determination is to make sure that the available resources are used to satisfy the needs of the

patients and emerge the best healthcare facility in the industry. In this paper, we will discuss about

application of resource based view model in healthcare organization and its analysis.

Background Information

Founded by William and Charles Mayo in Rochester in the 1880s, the Mayo Clinic is one

of the oldest private medical practices in the country. A pair of identical twins named Will and

Charlie Mayo aspired to be surgeons. Their rise from a little Minnesota hamlet to an international

orbit was due to an unusual set of circumstances. Franciscan Sisters who founded and staffed St.

Mary's Hospital in Rochester, New York, in 1889, played a significant role in their success as

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surgeons. And it was not until Harvey Cushing returned in 1905 that his father, Johns Hopkins

surgeon William Cushing, learned of the Mayo brothers' reputation for excellence in surgery and

how well-protected they were from malpractice lawsuits by a knowledgeable staff of internists,

specialists, etc. “U.S. News and World Report and Newsweek's No. 1 ranked hospital is led by Dr.

Gianrico Farrugia, president and CEO of Mayo Clinic, every year, Mayo Clinic treats more than

1.3 million patients from all 50 states and more than 130 countries with serious or complex

illnesses” (Arbab Kash et al., 2020). More than 100 Mayo Clinic locations can be found throughout

the country. Mayo Clinic's International Patient Offices make it possible for patients from around

the world to get high-class treatment, regardless of geography or language barrier. The successes

in the healthcare facility is contributed by the fact that the healthcare organization adopted the

resource view model in understanding the

Literature Review

As a strategic management theory, RBV focuses on the link between organizational

objectives and company resources through the value, rarity, and uniqueness of the (organization)

framework of the model. 'In-firm decision making and external strategic elements' amass

resources, which might be tangible or intangible (Smętek et al., 2020). RBV is built on the

foundation of an organization's physical, human, and organizational resources. They serve as the

foundation upon which a business can construct its strategy and, as a result, its success.

Capabilities are an organization's ability to use its resources in an orderly manner in order

to achieve a desired outcome. Organizational capabilities in critical areas such as manufacturing,

marketing, and innovation can be developed as a result of this linkage or bundling of resources

(Arbab Kash et al., 2020). It is important to note that the extent to which an organization's

capabilities contribute to its competitive advantage through innovation implementation depends

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on the organization's "complementary resources (Danviboon, 2018)." To put it another way,

achieving institutional advantage requires the integration, coordination, and organization of

resources and talents.

According to RBV, resources and capabilities are not the same in every organization. RBV

attempts to answer the fundamental question of why certain organizations perform better or worse

than others when all other variables are equal. That healthcare organizations are behind other

businesses in adopting new technologies is also explained (Arbab Kash et al., 2020). This suggests

that healthcare organizations will need to identify, organize, and then exploit their own unique

resource strengths in order to successfully integrate new innovations. Developing the ability to add

value and enhance performance is dependent on this for the organization's continual efforts to

improve quality of care and care delivery.

In healthcare, change management is a major concern.. Risks must be addressed,

administrators and clinicians have disagreements, and mission statements are typically vague and

don't provide operational guidance, therefore this is why. A healthcare organism's capacity to

encourage the interaction and integration of resource capability use amongst staff and across

departments, engaged in innovation implementation practices, is crucial to enabling the change

that comes with innovation management and subsequently the creation of institutional advantage

(Arbab Kash et al., 2020). Resources must be converted into resource capabilities, which in turn

necessitate integration and coordination across the entire business, as explained by RBV

According to RBV, a wide range of organizational resource capabilities can contribute to

and explain an organization's superiority over its competitors (Smętek et al., 2020). Oftentimes,

these capabilities complement each other and aren't available to all firms. The formation of

‘strategic partnerships' and the exchange of 'best practices' in healthcare has been strongly

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encouraged by healthcare accreditation systems and funding authorities, yet healthcare

organizations can still safeguard the rareness of their resources by erecting resource position

barriers.

Resource rarity is defined by Barney (1995) as the extent to which the organization has

complete control and access to the resource (Smętek et al., 2020). Competition for the same

resource can lead to a loss of control and access in partnership arrangements. Examples from other

industries, such as being the first to market with a service, building strength in 12 branding,

codifying knowledge, and having highly competent staff bases, can be used to illustrate how

healthcare businesses might protect the inimitability and rarity of their resources. In addition, a

healthcare organization's ability to use resources in a way that is difficult for others to replicate is

likely to stimulate future innovation.

Analysis

SWOT analysis targets on bringing the understanding about resource-view model of a

healthcare organization like the Mayo Clinic. The management of resources within the facility

contributes to its strengths and competitive advantage.

Strengths of Mayo Clinic

Exploration and Development

The Mayo Clinic places a high value on research and education. Multidisciplinary research

at Mayo aids in the quick discovery of new treatment and preventative methods.

Prioritize High-Level Performance

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At Mayo Clinic, the total experience of a patient is considered, not simply the sum of the parts.

Mayo Clinic is known for its expertise, kindness, and cutting-edge innovation. Quality indicators

include fatality, surgical infestations, and the number of people who have been effectively

diagnosed. In addition, the integrating of personal health records is an indicator of quality

(Cassedy, 2018). Time spent with patients, their treatment with dignity and respect, the regularity

of appointments and the availability of doctors at Mayo Clinic are also taken into consideration.

Health Information Technology and Teamwork

As a result of the implementation of a scheduling for health services, Mayo Clinic is able

to assign patients to physicians and manage their appointment times. Information such as the

patient's availability, laboratory tests, doctor remarks, and any further diagnoses are all recorded

by the system. Doctors can look up a patient's past medical history, allowing a group of specialists

to collaborate on a patient's care.

Weaknesses

There is still potential for improvement at Mayo Clinic, such as the fact that area physician

groups concluded that Mayo Health System's alternative treatments ranked lower than the regional

average of 12 in 2008. Among patients treated at several Mayo Foundation Hospitals, researchers

discovered "surprising diversity" in the level of end-of-life care, necessitating more uniformity on

the part of the organization as a whole. There were limited resources to meet the uniformity and

the healthcare facility need to focus on ways of making it work.

Conclusion

A resource-based strategy focuses on the company's internal resources and how to best

utilize them in order to acquire a competitive advantage in the market. With this technique, all

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sectors, including healthcare, are able to meet the needs of their patients and emerge as the top

healthcare institution in their field (Cassedy, 2018). Management of resources and service delivery

is improved by using this strategy in the healthcare organization. Mayo Clinic's success in a highly

competitive and expensive market requires careful planning, and the firm's strengths and

weaknesses analysis helps allocate resources in the most efficient manner.

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References

Arbab Kash, B., Spaulding, A., D. Gamm, L., & E. Johnson, C. (2020). Healthcare strategic

management and the resource based view. Journal of Strategy and Management, 7(3), 251-

264. https://doi.org/10.1108/jsma-06-2013-0040

Cassedy, J. (2018). The Origins and Evolution of the Mayo Clinic. Circulating Now from NLM.

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Danviboon, P. (2018). Critically Assess the Resource-based, Industry-based and Institution-based

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