If a firm's resources and capabilities are costly to imitate because imitating firms may not understand the relationship between the resources and capabilities controlled by a firm and that firm's competitive advantage,this competitive advantage is said to be protected from imitation by
A) path dependence.
B) casual ambiguity.
C) unique historical conditions.
D) social complexity.

Question

Quizplus · Accepted Answer

Casual ambiguity refers to the situation where an imitating firm may not fully understand the relationship between the resources and capabilities of a firm and its competitive advantage. This lack of clear understanding makes it difficult for the imitating firm to replicate the advantage, thereby protecting it from imitation.

If a Firm's Resources and Capabilities Are Costly to Imitate