Employees will be able to obtain a proportionately high level of profits they generate (relative to the firm)if
A) suppliers are loyal to the firm.
B) their expertise is firm-specific.
C) the cost to the firm of replacing them is high.
D) the firm's resources are path dependent.

Question

Quizplus · Accepted Answer

Several factors help explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits, including if they generate high employee replacement costs. If employee skills are idiosyncratic and rare (a source of resource-based advantages), they should have high bargaining power based on the high cost required by the firm to replace them.

Employees Will Be Able to Obtain a Proportionately High Level