How Are the Critical Assumptions of the Resource-Based Model of a Firm

question 84

Multiple Choice

How are the critical assumptions of the resource-based model of a firm fundamentally different from the way in which a firm is viewed in the perfectly competitive industry structure?

• A) In the resource-based model, resources are freely available and mobile, whereas in the perfectly competitive industry structure, resources are highly immobile.
• B) In perfect competition, it is extremely difficult to replicate the resource bundles of a firm, whereas in the resource-based model, it is extremely easy to imitate them.
• C) In perfect competition, all firms have access to the same capabilities, whereas in the resource-based model, resource differences exist between firms in the same industry.
• D) In the resource-based model, only physical assets of a firm are considered as resources, whereas in perfect competition, a firm's capabilities and competencies are also considered as resources.

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Definitions:

Environment Shift

Significant changes in the external surroundings that can impact an organization's strategy, operations, and competitiveness.

Ordered Systems

Systems that have been systematically organized in a structured manner.

Heterogeneous

Consisting of elements that are diverse in nature or composition, often referring to mixtures or groups with dissimilar characteristics.

Adaptive Behavior

The ability of an individual to adjust effectively to new or changing environments.