To create capabilities-based competitive advantage, what structural characteristics must an organisation display?
A) Hierarchical and top-down decision making
B) Bureaucratic and process-controlled decision making
C) Flat and fluid decision making
D) Centralised control and decision making
E) Traditional production-line specialisation of roles in which change is difficult

Question

Quizplus · Accepted Answer

To create capabilities-based competitive advantage, an organization must display flat and fluid decision making. This means that the decision-making process is decentralized and there is more collaboration and communication among team members. This allows for faster and more effective decision making, which is crucial for staying ahead of the competition in today's rapidly changing business environment. Hierarchical and top-down decision making, bureaucratic and process-controlled decision making, centralised control and decision making, and traditional production-line specialisation of roles in which change is difficult are all characteristics that can hinder an organization's ability to adapt and innovate, making it less likely to achieve capabilities-based competitive advantage.

To Create Capabilities-Based Competitive Advantage, What Structural Characteristics Must an Organisation