mgt 487 quiz 2
that each firm has different resources
what does resource heterogeneity mean
path dependance
______ suggests that sometimes even random events may have a large impacts on an outcome.
dynamic capabilities perspective
a model that emphasizes a firm's ability to modify and leverage its resource base in a way that enables it to gain and sustain competitive advantage in a constantly changing environment
casual ambiguity
a situation in which the cause and effect of a phenomenon are not readily apparent
valuable
A resource is considered ______ if it helps a firm to deal with an external threat.
core competency
If a firm's resource is valuable, rare, costly to imitate, and the firm is organized to exploit it, this resource is a
capabilites and resources
The core competencies of a business are generated by the interaction of
the main driver of firm performance
The resource-based model views resources as
valuable, rare, inimitable, organized
VRIO framework stands for?
activities
What are the distinct and fine-grained business processes that enable firms to add incremental value by transforming inputs into goods and services?
Tangible assets can be bought on the open market.
Why is competitive advantage more likely to spring from intangible rather than tangible assets?
competitive advantage
______ has a greater chance of arising from intangible resources than from tangible resources.
Resources
any assets that a firm can draw on when formulating and implementing a strategy.
resource heterogeneity
assumption in the resource-based view that a firm is a bundle of resources and capabilities that differ across firms
Isolating Mechanisms
barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy
industry chain
different players, from raw materials to the final product
Time compression diseconomies
trying to achieve the same outcome in a short time period, even with higher investments, tends to lead to inferior results
primary activities
firm activities that add value directly by transforming inputs into outputs as the firm moves a product or service horizontally along the internal value chain
support activities
firm activities that add value indirectly, but are necessary to sustain primary activities
Capabilities
organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically
social complexity
social and business systems that work for one firm may be hard to imitate because of complex interactions between these systems
firm value chain
the set of activities a firm engages in to create final products from raw inputs
VRIO framework
theoretical model that explains and predicts what resource attributes underpin competitive advantage. It identifies which types of resources are key to firm performance. Multiple choice question.
core competencies
those functions that the organization can do as well as or better than any other organization in the world