Final answer:
The resource-based model of above-average returns suggests that differences in firms' performance over time can be attributed to the resources and capabilities they possess.
Step-by-step explanation:
The resource-based model of above-average returns suggests that differences in firms' performance over time can be attributed to the resources and capabilities they possess. In this model, competitive advantage is gained when a firm has unique, valuable, and difficult-to-imitate resources or capabilities. These resources or capabilities can include things like proprietary technology, strong customer relationships, skilled employees, or efficient supply chains.
For example, Apple's success can be attributed to its proprietary technology, such as the iPhone and iPad, which competitors have found difficult to imitate. Similarly, Amazon's success can be attributed to its efficient supply chain and customer-centric approach.
In summary, according to the resource-based model of above-average returns, differences in firms' performance across time can be explained by the unique resources and capabilities they possess.