One of the ways in which a firm makes it more difficult for other firms to imitate its resources and capabilities is through:
A)Direct duplication.
B)Non-value-adding activities.
C) Causal ambiguity.
D) None of the above

Question

Quizplus · Accepted Answer

Causal ambiguity refers to the situation where it is difficult to understand how a firm achieved a particular resource or capability. This makes it harder for other firms to imitate as they cannot easily replicate the underlying cause of the firm's advantage. Therefore, causal ambiguity is one of the ways in which a firm can make it more difficult for others to imitate its resources and capabilities. A is incorrect because direct duplication would make it easy for other firms to imitate the resources and capabilities. B is incorrect because non-value-adding activities do not provide any advantage to the firm and are unlikely to make it more difficult for others to imitate its resources and capabilities. D is incorrect because one of these options must be correct.

One of the Ways in Which a Firm Makes It