The firm's ability to appropriate the rents generated by its organizational capabilities:
A)Is guaranteed by the fact that firms have full ownership of their capabilities
B)Is greater for firms in high technology than in low technology industries
C)Is weakened if a firm uses independent contractors instead of full-time employees
D)Depends upon the extent to those capabilities are embedded in team-based process that are heavily dependent upon corporate systems

Question

Quizplus · Accepted Answer

The appropriability of rents generated by organizational capabilities depends upon the extent to which those capabilities are embedded in team-based processes that are heavily dependent upon corporate systems. This means that if a firm has developed its organizational capabilities into a system that is integrated into its overall corporate structure, it will be more difficult for competitors to imitate or replicate that system, making it easier for the firm to appropriate the rents generated. Therefore, choice D is the best answer.

The Firm's Ability to Appropriate the Rents Generated by Its