The firm's ability to appropriate the rents generated by its organizational capabilities:
A)Is guaranteed by the fact that firms have full ownership of their capabilities
B)Is greater for firms in high technology than in low technology industries
C)Is weakened if a firm uses independent contractors instead of full-time employees
D)Depends upon the extent to those capabilities are embedded in team-based processes that are heavily dependent upon corporate systems

Question

Quizplus · Accepted Answer

The ability of a firm to appropriate rents from its organizational capabilities depends upon how embedded the capabilities are within team-based processes that rely heavily upon corporate systems. This means that the firm's ability to capture value is highly dependent on the integration of capabilities within the firm, which may be difficult to achieve when using independent contractors instead of full-time employees. While firms in high technology industries may have a greater ability to generate rent due to the nature of their products or services, this does not necessarily guarantee their ability to appropriate those rents. Ownership of capabilities alone also does not guarantee the firm's ability to appropriate the generated value.

The Firm's Ability to Appropriate the Rents Generated by Its