Making sense of the resource-based view?

The Resource Based View (RBV) of strategic management has been criticized for relying on inconsistent assumptions of rationality, and mutually inconsistent underlying hypotheses. In this paper, I outline how these critiques can be addressed by re-building RBV on a sense-making foundation. The core notions from sense-making of bounded cognition, retrospective sense-making, incrementalism, loose coupling, causal maps and organizational paradigm are introduced. These are then used to propose a re-construction of key RBV constructs, extending some conceptual discussions, and providing for a conceptually consistent formulation. Implications for the use of RBV as a theory and future research are discussed.