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Core Competencies: Firms should cultivate core competencies, unique strengths that differentiate
them from competitors. These competencies arise from combining tangible and intangible resources,
including technology, skilled labour, and organizational culture (University of Illinois, 2021).
Application of RBV in Africa's Economic Development
In Africa, RBV suggests that leveraging renewable resources like solar, wind, and geothermal energy
can be pivotal for economic growth. With an abundance of renewable resources, effective
management could significantly improve energy access and sustainability.
Importance of Renewable Resources
Sustainable Growth: Investment in renewable energy aligns with global sustainability trends,
reducing dependence on fossil fuels and enhancing energy security for African nations (Science
Direct, 2021).
Job Creation: Developing the renewable energy sector can generate jobs, support local economies
and improve livelihoods (Oxford Reference, 2021; University of Illinois, 2021).
Technological Innovation: Renewable energy technology promotes innovation, attracting foreign
investment and further driving economic development (University of Illinois, 2021).
Challenges and Considerations
Despite the potential for renewable resources, challenges such as infrastructure development,
investment needs, and policy frameworks must be addressed to enable effective deployment and
equitable resource distribution (Study.com, 2021; University of Illinois, 2021).
In conclusion, the Resource-Based View offers a valuable framework for understanding how Africa
can leverage its natural resources for economic development. By focusing on renewable energy and
sustainable practices, African nations can harness their unique resource endowments for growth, job
creation, and innovation.
Gaps in Knowledge
Despite a growing body of research on renewable energy, there are still notable gaps when it comes to
Africa's specific challenges. For instance, studies on the relationship between renewable energy
adoption and foreign direct investment (FDI) remain sparse. Additionally, the impact of renewable
energy on GDP growth in the African context is less understood compared to other regions, with few
empirical studies addressing long-term economic impacts of renewable energy transitions.
Moyo and Billon (2021) emphasize significant data gaps concerning the effectiveness of renewable
energy projects in Africa, especially regarding their economic impact. They argue for more
comprehensive studies to explore how renewable energy adoption intersects with economic policy
and regional development, which is crucial for understanding the broader implications of renewable
energy beyond environmental benefits, focusing instead on economic sustainability and growth.
Key Findings from Moyo and Billon (2021)
Data Gaps: Many African nations lack detailed data on the economic impacts of renewable energy
initiatives, hindering effective policy-making and project implementation (Moyo & Billon, 2021).
Call for Research: Moyo and Billon advocate for more in-depth studies on the connections between
renewable energy projects, economic policies, and regional development outcomes. Such research is