Question

The assumption that some of the resource and capability differences among firms may be long lasting because it may be very costly for firms without certain resources and capabilities to develop or acquire them is known as ________.

Answer 1

Answer:

D. Resource Immobility

Explanation:

Resource immobility is the concept that if a resource is easy to obtain by competitors because the cost of developing, acquiring or using that resource is relatively low, then that resource cannot provide competitive advantage.

Sometimes, resources are not free or able to move between markets. This may lead to the resources not being used as efficiently as possible. Due to this immobility, companies cannot replicate rivals’ resources and implement the same strategies.