If firms that do not possess valuable and rare resources or capabilities face a cost disadvantage in obtaining these resources or capabilities compared to the firms that already possess them, these resources and capabilities are termed
A) rare.
B) valuable.
C) imperfectly imitable.
D) perfectly imitable.

Question

Quizplus · Accepted Answer

Resources and capabilities that are imperfectly imitable are difficult to obtain or replicate by other firms, which gives the firm that possesses them a competitive advantage. If other firms face cost disadvantages in obtaining these resources or capabilities, they are considered imperfectly imitable. Therefore, the correct choice is C.

If Firms That Do Not Possess Valuable and Rare Resources