To the extent that a firm's resources and capabilities are continuously evolving,its organizational structure,control systems,and compensation policies must also evolve.

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When a firm's resources and capabilities evolve, its organizational structure, control systems, and compensation policies must also evolve to align with the changes in the firm's goals and operations. This allows the firm to remain competitive and effectively utilize its resources and capabilities. If these systems and policies do not evolve, the firm may become outdated and unable to capitalize on new opportunities.

To the Extent That a Firm's Resources and Capabilities Are