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

Question

Quizplus · Accepted Answer

Causal ambiguity refers to a situation where a firm is unable to understand the cause-and-effect relationship between its resources, competencies, and outcomes. In this case, the firm's inability to understand how a competitor is using its competencies effectively is an example of causal ambiguity. Social complexity refers to the difficulty in managing social interactions and relationships within an organization. Rarity and non-substitutability of a capability are related to a firm's unique resources and competencies that give it a competitive advantage over other firms.

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