Question

All of the following are assumptions of the industrial organization (I/O) model EXCEPT: a. the external environment is assumed to impose pressures and constraints that determine the strategies that result in above-average returns. b. organizational decision makers are rational and committed to acting in the firm's best interests. c. every firm in an industry controls similar strategically relevant resources. d. resources to implement strategies are firm-specific and attached to firms over the long-term.

Answer 1

resources to implement strategies are firm-specific and attached to firms over the long-term.

Step-by-step explanation:

The industrial organization (I/O) model clearly explains that the external environment should be taken care of by organizations before making any strategic decisions. This is because the environment imposes the constraints and pressure that the strategies to be adopted are dependent upon. Furthermore, the industrial organization (I/O) model states that the industry that an organization decides to compete in can influence the performance of an organization than the choices they make. Hence every decision are usually in the best interest of the firm. There is no assumptions that suggest that "resources to implement strategies are firm-specific and attached to firms over the long-term".