The resource-based framework for competitive advantage suggests that as a resource begins to be diffused through an industry, firms can expect the resource to
A) offer a competitive advantage to all firms.
B) impose additional resource costs on other firms.
C) offer only competitive parity with other firms.
D) A and B
E) none of these

Question

Quizplus · Accepted Answer

The resource-based framework suggests that resources that are easily diffused through an industry, such as technology or knowledge, do not offer sustained competitive advantage as they offer only competitive parity with other firms. This is because other firms can replicate the resource and it no longer provides a unique advantage.

The Resource-Based Framework for Competitive Advantage Suggests That as a Resource