Imitation by rivals is most challenging when
A)resources are unique.
B)resources must be built over time.
C)capabilities reflect a high level of social complexity and causal ambiguity.
D)resources and capabilities require a high level of capital investment.
E)resources and capabilities are accessible and require low levels of investment.

Question

Quizplus · Accepted Answer

Imitation by rivals is most challenging when the capabilities reflect a high level of social complexity and causal ambiguity. When resources and capabilities are easily accessible and require low levels of investment, it becomes easier for rivals to imitate them. However, if the capabilities are complex and difficult to understand, it takes time and effort for rival firms to replicate them. Thus, such capabilities create a barrier to imitation, making it challenging for rivals to copy them.

Imitation by Rivals Is Most Challenging When