The VRIO Framework: Looking Inward, Thinking Forward

When I was chatting with John Wetenhall, director of the GW Museum, he mentioned a business analysis tool I had never heard of: VRIO. It was a surprisingly lively conversation about whether this corporate framework could apply to museums and historic sites—and it piqued my curiosity. Developed by Birger Wernerfelt in his landmark 1984 article “A Resource-Based View of the Firm,” and later refined by Jay Barney in “Firm Resources and Sustained Competitive Advantage” (1991), VRIO offers a way to evaluate whether an organization’s internal assets truly contribute to long-term success. The acronym stands for Value (does it help the organization exploit opportunities or neutralize threats?), Rarity (is it scarce among competitors?), Imitability (is it difficult to duplicate or substitute?), and Organization (is the organization structured to fully leverage it?).

What began as a theoretical framework for corporations turns out to have practical potential for cultural institutions as well. Tools like logic models and Porter’s Five Forces are helpful, but what about the museum’s internal capabilities? How do we know if our collections, staff, or community ties are truly strategic advantages? Two articles by Paul Knott at the University of Christ Church (New Zealand) offer guidance by critically examining the popular VRIO framework—and how it can work better for cultural institutions.

Insight #1: Strengthening Strategy with an Expanded VRIO Model

In “Integrating Resource-Based Theory in a Practice-Relevant Form” (2009), Knott builds on the traditional VRIO model—Value, Rarity, Imitability, Organization—to create a more actionable and dynamic approach. He emphasizes that internal resources (like a museum’s brand, reputation, or community partnerships) are only strategic if they are used under the right conditions. Critically, he introduces a matrix that shows how the same resource can be a strength, weakness, missed opportunity, or rigidity depending on how it’s managed. This is a significant improvement over the traditional SWOT exercise because it requires you to evaluate each asset or resource with specific questions.

Resources can be Tangible (buildings, archives, collections, equipment), Intangible (reputation, staff expertise, donor relationships, institutional culture), and Human (volunteer networks, community ties, board knowledge. Identifying strategic resources involves three key steps:

  1. Look behind the results. If your museum has strong attendance, ask why. Is it the marketing strategy? The location? A signature program? That’s where the resource lies.
  2. Be specific and granular. “Education” is too broad. Instead, identify the curriculum design process, the expertise of educators, or the relationship with schools.
  3. Assess resource conditions. Use Knott’s updated VRIO logic: Is the resource valuable to the community? Is it rare? Can others copy it? Is your organization structured to fully use it?

What’s the takeaway for museums?

  • Don’t assume that long-standing resources (like a beloved building or popular program) are valuable just because they exist.
  • Assess whether these resources still create value for your current audience and whether your organization is structured to fully leverage them.
  • Regularly evaluate both internal and external conditions to avoid mistaking “sacred cows” for assets.

Insight #2: How Well Does VRIO Work in Practice?

In “Does VRIO Help Managers Evaluate a Firm’s Resources?” (2015), Knott tests how effectively managers use VRIO in a classroom setting. While the tool encouraged users to think about competition and capabilities, most participants misidentified what actually counts as a “resource.” Instead of analyzing skills or systems, they focused on outcomes—like product quality or speed—which are the results of resources, not the resources themselves. Knott also found that VRIO led many users to focus too much on the current business model and too little on future opportunities or risks.

What’s the takeaway for museums?

  • When using strategic tools like VRIO, be careful not to confuse a great visitor experience with the resources (e.g., staff expertise, training systems) that make it possible.
  • Avoid looking only inward. Museums also need to consider external threats—like new digital competitors or changing audience needs—to make strategy truly forward-looking. That’s where Michael Porter’s Five Forces can help.
  • Simplified tools can anchor thinking unless used with intention and awareness of their limits.

Bringing It Together: Strategic Self-Awareness with External Awareness

Together, these two articles offer a powerful message: strategic thinking isn’t just about looking inward—it’s about looking clearly and using tools wisely. Knott’s expanded VRIO model provides a stronger structure for evaluating museum assets, while his second study reminds us that even good tools can produce weak results without the right mindset and support.

Recommendations for museum professionals:

  • Use VRIO alongside external frameworks like Porter’s Five Forces to ensure a balanced view.
  • When identifying strategic resources, ask: What creates this outcome? and Are we organized to make the most of it?
  • Create space for honest conversation about resources that may have lost value or relevance—and imagine new ways to activate them.

Try This at Your Museum

Think about one major program, department, or asset your museum is proud of. Using Knott’s updated VRIO lens, ask:

  • Is this resource still valuable to today’s audiences or funders?
  • Is it rare in your region or sector?
  • Is it hard to copy or replicate?
  • Are you organized to fully support and grow it?

What did you discover? What might need to change?

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