The resource-based model of the firm argues that:
A) all resources have the potential to be the basis of sustained competitive advantage.
B) resources are not a source of potential competitive advantage.
C) the key to competitive success is the structure of the industry in which the firm competes.
D) resources that are valuable,rare,costly to imitate,and non-substitutable form the basis of a firm's core competencies.

Question

Quizplus · Accepted Answer

The resource-based model of the firm argues that a firm's resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of sustained competitive advantage, which are its core competencies. Therefore, option D correctly reflects the key premise of the resource-based model. Option A is incorrect as not all resources have the potential to form the basis of a sustained competitive advantage. Option B is also incorrect as resources can be a source of competitive advantage. Option C is incorrect as it overlooks the internal capabilities and resources of the firm, which the resource-based model emphasizes as central to achieving competitive success.

The Resource-Based Model of the Firm Argues That