The Resource-Based View of the Firm

question 23

Multiple Choice

The resource-based view of the firm:

• A)suggests that resources, rather than capabilities, are more closely linked with sustainable competitive advantage
• B)argues that the industry environment has a stronger influence on a firm's ability to implement strategies successfully than the competitor environment
• C)calls for firms to focus on their homogeneous skills to compete against their rivals
• D)assumes that resources may not be mobile across firms

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Definitions:

Imperfect Information

The absence of full knowledge concerning product characteristics, available prices, and so on.

Peer Lending

A financial transaction in which individuals lend money to each other directly, often facilitated by an online platform, bypassing traditional financial intermediaries.

Savings Deposits

Accounts in financial institutions that allow individuals to deposit money and earn interest over time.

Import Substitution

An industrial trade strategy that favors developing local industries that can manufacture goods to replace imports.