Question

All of the following are assumptions of the resource-based model EXCEPT

a. Each firm is a unique collection of resources and capabilities.
b. The industry's structural characteristics have little impact on a firm's performance over time.
c. Capabilities are highly mobile across firms.
d. Differences in resources and capabilities are the basis of competitive advantage.

Answer 1

The resource-based model explains how a firm can gain a competitive advantage through its unique collection of resources and capabilities. The assumptions of this model include that each firm is unique and that differences in resources and capabilities are the basis of competitive advantage. However, capabilities are not highly mobile across firms.

Step-by-step explanation:

The resource-based model is a theory that explains how a firm can gain a competitive advantage through its unique collection of resources and capabilities. The assumptions of this model include:

1. Each firm is a unique collection of resources and capabilities.
2. Differences in resources and capabilities are the basis of competitive advantage.
3. Capabilities are highly mobile across firms.
4. The industry's structural characteristics have little impact on a firm's performance over time.

Therefore, the correct answer is option c. Capabilities are highly mobile across firms.