Which of the following perspectives assumes that industry structure is the primary influence on firm performance?
A)Industrial organization theory
B)Resource-based theory
C)Contingency theory
D)None of the above

Question

Quizplus · Accepted Answer

Industrial organization theory assumes that the external environment, particularly the industry structure, is the primary determinant of firm performance. This theory emphasizes the importance of analyzing the competitive forces within an industry in order to determine the potential profitability and success of firms operating within it. Resource-based theory, on the other hand, assumes that a firm's internal resources and capabilities are more important for achieving sustained competitive advantage. Contingency theory suggests that there is no one best way to manage a firm or make strategic decisions, as the optimal approach will vary depending on the specific circumstances and context.

Which of the Following Perspectives Assumes That Industry Structure Is