Time compression diseconomies are larger when:
A) the contribution of firm's capability to its V-C position is path dependent
B) a firm's capability resides within an individual employee
C) the knowledge underlying a firm's capability is organization specific
D) the contribution of firm's capability to its V-C position is path dependent and the knowledge underlying . a firm's capability is organization specific

Question

Quizplus · Accepted Answer

Time compression diseconomies are larger when both the contribution of a firm's capability to its value-cost (V-C) position is path dependent and the knowledge underlying a firm's capability is organization specific. This is because path dependency implies that the capability has developed over time and cannot be easily or quickly replicated or accelerated without incurring additional costs. Similarly, when the knowledge is organization specific, it is deeply embedded within the organization's processes and culture, making it difficult to rapidly replicate or transfer, thus increasing the diseconomies associated with trying to compress time in developing such capabilities.

Time Compression Diseconomies Are Larger When