Abstract

This paper postulates that tangible resources that are rare, valuable, inimitable and in substitutable, owned and controlled by a firm, are at the core of the value creation process that leads to the creation of sustainable competitive advantage for a consistently high performing firm in the motor service industry. The paper asserts that by integrating activity-based and resourcebased views of the firm, through activity drivers of scale, location and capacity utilization, the value creation process by tangible resources is explained. A new framework, the activityresource- based view (ARBV) is also generated.