Question

Resource similarity is defined as the extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm.

Answer 1

The statement conveying the definition of resource similarity with respect to the possession of the strategic endowment of the focal firm is TRUE.

Explanation:

• As far as the types of resources between two or more competitors are similar, the strategies that the competitors adopt would most probably be similar to each other.
• In such a situation, it is difficult for the firms to derive advantage from the utility of resources at large owing to the similarity of resources and the initial costs being the same.