A firm's inability to understand how a competitor uses its capabilities to gain competitive advantage is an example of:
A) social complexity.
B) causal ambiguity.
C) the rarity of a capability.
D) the nonsubstitutability of a capability.

Question

Quizplus · Accepted Answer

This is an example of causal ambiguity, which refers to the difficulty in understanding the cause-and-effect relationship between a firm's capabilities and its competitors' competitive advantage. Social complexity (A), rarity (C), and nonsubstitutability (D) are not relevant in this scenario.

A Firm's Inability to Understand How a Competitor Uses Its