The ability to buy capabilities depends on:
A)Their transferability between firms
B)Their transferability between firms and the size of transaction costs
C)The time needed to accumulate knowledge about this capability
D)The cost of capabilities on external factor markets

Question

Quizplus · Accepted Answer

The ability to buy capabilities depends on both their transferability between firms and the size of transaction costs. Transferability refers to the ease with which a capability can be transferred from one firm to another, while transaction costs are the costs associated with buying or selling a capability. The time needed to accumulate knowledge about a capability and the cost of capabilities on external factor markets are also important factors, but they are not the only ones.

The Ability to Buy Capabilities Depends On