Creating Resources That Meet the VRIO Criteria Is Strategically Important

question 23

Multiple Choice

Creating resources that meet the VRIO criteria is strategically important to a firm because it

• A) helps the firm curb its resource heterogeneity and resource immobility.
• B) facilitates greater knowledge diffusion in the industry.
• C) leads to competitive parity within the industry.
• D) helps the firm to gain and sustain a competitive advantage.

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Definitions:

Right-to-Work Laws

Right-to-work laws are statutes in some U.S. states that prohibit union security agreements between companies and workers' unions, ensuring that employment is not conditioned on union membership or related fees.

Monopsony

A market condition where there is only one buyer for many sellers, giving the buyer significant power over prices and terms.

Union Shop

A workplace where employees are not required to join the union to be hired, but must join shortly after commencing employment and remain members for as long as they are employed there.

Company Towns

Communities where nearly all stores and housing are owned by the one company that is also the main employer.