Question

What does the relational view of competitive advantage propose?

A. A strategic alliance has the potential to help a firm gain a competitive advantage when it joins together resources that are common, inexpensive, and easy to imitate.
B. The locus of competitive advantage is often not found within the individual firm but within a strategic partnership.
C. Strategic alliances fail to provide competitive advantage when they involve joining different parts of a firm's value chain, such as R&D and marketing.
D. A firm has a competitive advantage over its rivals when it can provide goods or services similar to the competitors' at a higher price.

Answer 1

The relational view of competitive advantage focuses on the importance of strategic partnerships in creating competitive advantage, suggesting that value lies in unique combinations of resources and activities within alliances.

Step-by-step explanation:

The relational view of competitive advantage proposes that competitive advantage can often be found not within the individual firm but within strategic partnerships.

This view suggests that competitive advantage arises from the way firms manage their interconnected relationships, and that strategic alliances can be a source of competitive advantage when they uniquely combine resources and activities that are difficult to replicate or obtain elsewhere. For instance, companies can gain from learning opportunities, increased specialization, and economies of scale by splitting up the value chain and focusing on areas where they excel. In this interconnected world, firms that engage in intra-industry trade and leverage their dynamic comparative advantage are more likely to stay ahead in the competitive landscape.