Question

The VRIO 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

A) resource mobility.
B) resource homogeneity.
C) resource immobility.
D) resource heterogeneity.

Answer 1

The correct answer is C) resource immobility, which describes the enduring differences in resources among firms due to high costs of development or acquisition.

Step-by-step explanation:

The VRIO framework is a business analytical tool used for evaluating a firm's resources and capabilities to determine their competitive potential. In this context, the option that describes the VRIO assumption that certain resource and capability differences among firms might be enduring due to the high costs involved for firms without them to develop or acquire these resources is C) resource immobility.

This concept refers to the inability of resources to move easily from firm to firm, leading to potential long-lasting competitive advantages for firms that already possess them.The correct answer is C) resource immobility, which describes the enduring differences in resources among firms due to high costs of development or acquisition.