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Purpose

The purpose of this article is to identify and discuss the practical implications of the resource based view of the firm.

Design/methodology/approach

Review of relevant literature.

Findings

A number of recommendations are put forward and the practical implications constitute the main findings of this study.

Practical implications

The implications can be summarized by these recommendations: diversify based on capabilities and not on the markets you are currently serving, focus on creating value together with your customers based on your resources instead of offering a set of products, integrate HRM practices with strategic management processes. The complexity of imitating resources is also discussed.

Originality/value

Few publications have set out to develop implications of the resource‐based view from a CEO's point of view. This paper provides an easy‐to‐access review and summary of some of the main implications of the resource‐based view.

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