Capabilities may be costly to imitate if firms have unique and valuable organizational cultures, are causally ambiguous, and socially complex.

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Capabilities that are based on unique and valuable organizational cultures can be difficult for rival firms to imitate. Causal ambiguity occurs when the cause-and-effect relationship between a firm's resources and capabilities and its competitive advantage is not easily understood by rivals. Social complexity refers to the interpersonal relationships, trust, and shared goals within a firm, which are difficult to replicate. All of these factors contribute to the high cost of imitating capabilities.

Capabilities May Be Costly to Imitate If Firms Have Unique