According its favor. In the views of

According to Bohnenkamp (2013), resource-based view contradicts the five forces analysis of Porter’s theory and argues that the firm consist of various different resources and all these resources can be used for gaining competitive advantage. In other words, resource-based view suggests that every firm possesses unique set of internal resources which should be used for acquiring a competitive edge in the industry. There is vast applicability of resource –based view in supply chain management as Bohnenkamp (2013),  suggests that resource-based view helps and contributes in every stage of decision making during purchase year cycle. The view guides that the firm should keep more strategically significant and vital operations inside while, less important activities can be outsourced. The activities done in-house using firm’s resources will help in gaining a competitive advantage. By maintaining a healthy relationship with the supplier and increasing cooperation, firm can also turn external factors in its favor. In the views of Abushaikha (2014) it is important for the firms to identify the critical resources their usability, sustainability and rarity to be used in the process. Moreover, organizations are required to identify activities which could be outsourced based on dependence of entire process on them. According to Abushaikha (2014), resource-based view becomes even more significant while doing supply-chain management because the firm need to decide whether to carry on entire process that is from acquiring raw material to delivering finished product to the customers on their own or to outsource less important activities to save time and resources. Resource-based view also helps the firm to take a decision on whether to make or buy certain item based on the internal resources available. This is really significant as some of the items required could be made internally and a lot of money and time can be saved while at the same time quality of the work can also be continuously monitored and controlled.