Question

As a result of _____, a critical assumption in the resource-based model of a firm, the resource differences that exist between firms are difficult to replicate.

Answer 1

Answer:

A. Resource immobility

Explanation:

Resource immobility is based on the assumption that resources owned by a company are immobile or rather not mobile/moveable. It is on the idea that resources tend to be sticky (cannot move) and this can not be moved easily from one company to the other. These immobility in resources results in resource differences amongst companies or firms which becomes very difficult to replicate. Resource immobility sometimes leads to resources not been used as efficiently as possible. Resource immobility are characterized by layoffs, closed bases, shipping cost and so on.