WPC 480 Exam #2 Questions With Complete
Solutions
valuable resource One of the four key criteria in the VRIO framework. A resource is
valuable if it helps a firm exploit an external opportunity or offset an external threat
rare resource one of the four key criteria in the VRIO framework. A resource is rare if the
number of firms that possess it is less than the number of firms it would require to reach a state
of perfect competition
costly-to-imitate resource one of the four key criteria in the VRIO framework. A resource
is costly to imitate if firms that do not possess the resource are unable to develop or buy the
resource at a comparable cost.
organized to capture value one of the four key criteria in the VRIO framework. The
characteristic of having in place an effective organizational structure, processes, and systems to
fully exploit the competitive potential of the firm's resources, capabilities, and competencies.
Causal ambiguity A situation in which the cause and effect of a phenomenon are not
readily apparent.
, WPC 480 Exam #2 Questions With Complete
Solutions
Social complexity a situation in which different social and business systems interact with
one another
Intellectual property (IP) protection A critical intangible resource that can provide a strong
isolating mechanism, and thus help to sustain a competitive advantage
Core rigidity A former core competency that turned into a liability because the firm failed
to hone, refine, and upgrade the competency as the environment changed
dynamic capabilities A firms ability to create, deploy, modify, reconfigure, upgrade, or
leverage its resources in its quest for competitive advantage
Dynamic capabilities perspective A model that emphasizes a firms ability to modify and
leverage its resources base in away that enables it to gain and sustain competitive advantage in a
constantly changing environment
Resource stocks The first current level of intangible resources
Solutions
valuable resource One of the four key criteria in the VRIO framework. A resource is
valuable if it helps a firm exploit an external opportunity or offset an external threat
rare resource one of the four key criteria in the VRIO framework. A resource is rare if the
number of firms that possess it is less than the number of firms it would require to reach a state
of perfect competition
costly-to-imitate resource one of the four key criteria in the VRIO framework. A resource
is costly to imitate if firms that do not possess the resource are unable to develop or buy the
resource at a comparable cost.
organized to capture value one of the four key criteria in the VRIO framework. The
characteristic of having in place an effective organizational structure, processes, and systems to
fully exploit the competitive potential of the firm's resources, capabilities, and competencies.
Causal ambiguity A situation in which the cause and effect of a phenomenon are not
readily apparent.
, WPC 480 Exam #2 Questions With Complete
Solutions
Social complexity a situation in which different social and business systems interact with
one another
Intellectual property (IP) protection A critical intangible resource that can provide a strong
isolating mechanism, and thus help to sustain a competitive advantage
Core rigidity A former core competency that turned into a liability because the firm failed
to hone, refine, and upgrade the competency as the environment changed
dynamic capabilities A firms ability to create, deploy, modify, reconfigure, upgrade, or
leverage its resources in its quest for competitive advantage
Dynamic capabilities perspective A model that emphasizes a firms ability to modify and
leverage its resources base in away that enables it to gain and sustain competitive advantage in a
constantly changing environment
Resource stocks The first current level of intangible resources
