When firms without a resource or capability face a cost disadvantage in obtaining or developing it compared to firms that already possess it, this resource or capability is described as perfectly imitable.

Question

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When firms face a cost disadvantage in obtaining or developing a resource or capability compared to firms that already possess it, this resource or capability is described as imperfectly imitable. Perfectly imitable resources or capabilities can be easily and quickly duplicated by competing firms without any cost disadvantage.

When Firms Without a Resource or Capability Face a Cost