Question

Difference between i/o model and resource based model

Answer 1

The i/o model concentrate on the external external environment .It said that the external pressure is thing to be kept in mind while making any strategy by the industry. Also according to this model the firm should have similar resources if they are supposed to compete  each other.

While "Resource based model " tells that every organization's primary return source is it's own resources and ability  on which basis a strategy is made. 

Answer 2

The I/O model or Industrial Organization model focuses on studying the influences a company’s performances has in its industry. It works on the four assumptions given below:

# The external environment poses a series of constraints and pressures that the company must overcome to achieve its strategy.

# Firms operating under the same industrial sector have access to similar type of resources.

# The resources under the company’s control are mobile.

# The people working in the company are rational human beings.

The resource based model is based on the assumption that any organization is represented by its unique capabilities and resources that are responsible for the primary source of return. These capabilities and resources are also the reason why the company’s performance changes from time to time.