Although True Ion Inc. and One Electro Inc. operate in the same consumer electronic industry, True Ion Inc. has better sales and brand equity. This is attributed to True Ion Inc.'s commitment to innovation. The company has adequate financial and human capital to invest in research and development, an area in which One Electro Inc. lags behind. In this scenario, which of the following critical assumptions of the resource-based view of a firm has been illustrated?
a. resource imitation
b. resource heterogeneity
c. resource immobility
d. resource value

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Answer: b. resource heterogeneity

Explanation: Resource heterogeneity could be explained as the variation or difference in resources possessed by firms operating in the same market. These differences or diversity of resources plays a huge role in giving one firm the competitive edge over the other. In the scenario described above, True Ion Inc's innovative capability provided by it's resource-base due to human and capital investment gives it the competitive edge over other market competitors such as Electron Inc. whose resource-base lags in the aspect of innovation.

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