Final answer:
Continuous improvement is essential for firms to adapt to market changes, maintain competitiveness, and enhance efficiency, quality, and cost-effectiveness. It enables firms like Samsung to innovate, gain an edge over competitors, and achieve above-normal profits. This approach is integral to evolving a firm's dynamic comparative advantage. The correct option is d) all of these.
Step-by-step explanation:
Continuous improvement is critical in a dynamic environment; it is important to finding and maintaining a competitive advantage; and it is an effort to find ways to increase overall efficiency, improve quality, and reduce costs.
Engaging in continuous improvement allows firms to adapt to ever-changing market conditions and technological advancements. Market competition propels firms towards continuous innovation, as evidenced by the practices of successful companies like Samsung, whose CEO, Gregory Lee, emphasizes the relentless pursuit of innovation.
This not only leads to the development of superior products but also secures a temporary edge over competitors, facilitating the earning of above-normal profits. A firm's comparative advantage can be dynamic and evolve over time, which means that firms must constantly refine their strategies to stay ahead.
Continuous improvement contributes to the dynamic comparative advantage by encouraging firms to learn about specialized products and take advantage of economies of scale, thereby increasing worker productivity and overall business performance.