Firms use both the
And
Models. In fact,these models complement each other in that one focuses
Outside the firm while the other focuses inside the firm.
A)industry; capability
B)I/O; resource-based
C)competition; competency
D)industry; competency

Question

Quizplus · Accepted Answer

The I/O (Industrial Organization) model focuses on external factors such as the industry and competition, while the resource-based model focuses on internal factors such as the firm's resources and capabilities. Therefore, option B, I/O and resource-based models, best fits the description given in the question. Option A (industry and capability) is close but not as accurate, and options C and D are incorrect as they miss the complementary relationship between the two models.

Firms Use Both the