Which of the following terms best describes the ability of a firm to maintain and adapt the capabilities that are the basis of its competitive advantage?
A)Riskiness of R&D
B)Correlated research strategies
C)Evolutionary economics
D)Dynamic efficiency
E)Dynamic capabilities

Question

Quizplus · Accepted Answer

Dynamic capabilities refer to a firm's ability to maintain and adapt its competitive advantage by continuously improving its internal resources, processes, and routines. It emphasizes the importance of flexibility, learning, and innovation in a firm's ability to sustain its competitive advantage in the long-term. Options A, B, and C are not related to the concept of dynamic capabilities, and option D is a similar concept, but it refers specifically to the efficiency of a firm's operations, rather than its ability to maintain a competitive advantage.

Which of the Following Terms Best Describes the Ability of a Firm