The I/O approach to competitive advantage argues that external factors are internal factors in a firm achieving competitive advantage.
A)less important than
B)less common than
C)as important as
D)more important than
E)more common than

Question

Quizplus · Accepted Answer

The I/O (Industrial-Organizational) approach to competitive advantage emphasizes that external factors, such as industry structure and competition, are more important than internal factors in determining a firm's success. This perspective suggests that a firm's strategic choices should be based on the opportunities and threats present in the external environment rather than solely on its internal strengths and weaknesses. Therefore, the correct choice is D, which states that external factors are more important than internal factors in achieving competitive advantage.

The I/O Approach to Competitive Advantage Argues That External Factors