The resource-based model of the firm argues that:
A) All resources have the potential to be the basis of sustainable competitive advantage
B) Resources alone can be a source of sustainable 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 resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies, which in turn can lead to sustainable competitive advantage. Therefore, option D is the correct choice. Option A is not entirely true since not all resources have the potential to be the basis of sustainable competitive advantage. Option B is also incorrect because resources alone cannot be a source of sustainable competitive advantage without possessing the potential to meet the VRIO conditions. Option C is incorrect because the resource-based model focuses on the firm's internal resources rather than the structure of the industry.

The Resource-Based Model of the Firm Argues That