Assume a firm's resources and capabilities are costly to imitate. This is because rival companies do not clearly understand the relationship between the resources and capabilities controlled by the firm. In this case, the firm's competitive advantage is protected against imitation bycausal ambiguity T/F

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Hailie Riley

Business

Today, 13:42

Assume a firm's resources and capabilities are costly to imitate. This is because rival companies do not clearly understand the relationship between the resources and capabilities controlled by the firm. In this case, the firm's competitive advantage is protected against imitation bycausal ambiguity T/F

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Carson · Answer 1

True

Explanation:

A core competency refers to those unique capabilities built by an organization which are hard to imitate by rivals and which give such an organization a competitive advantage over the rivals.

A casual ambiguity refers to the state of non clarity with respect to how consequences relate to the initial state of a phenomenon.

In the case of firm, the phenomenon being the built up to core competency which the rivals are unable to decipher with respect to the relationship between the firm's resources and capabilities.