Question

Resources and capabilities, such as interpersonal relations among managers and a firm's culture, that may be costly to imitate because they are beyond the ability of firms to systematically manage and influence are referred to as _________.A) socially complex.
B) casually ambiguous.
C) path dependent.
D) the result of unique historical conditions.

Answer 1

Answer: A- socially complex

Explanation: Socially complex resources and capabilities are those company’s interpersonal relations such as belief, relationship, trust, cooperation, and custom which are very difficult and costly to imitate which are likely to be sources of sustained competitive advantage. This is mostly achieved by having the right individuals in the right positions doing the right jobs, also by creating and sustaining steady feedback that enables the company to be aware of any alterations in the operating environment of the business so as to adapt to those changes.