Resources and capabilities are core competencies only when their use:
A) leads to a competitive advantage for the firm.
B) permits diffusion of threats in the external environment.
C) provides opportunities to defeat competitors.
D) encourages quick responses to changes in the global economy.

Question

Quizplus · Accepted Answer

Resources and capabilities can only be considered core competencies if they provide a competitive advantage for the firm, meaning they enable the firm to outperform its competitors in the market. The other choices may be important factors for a firm's success, but they do not necessarily determine whether a resource or capability is a core competency.

Resources and Capabilities Are Core Competencies Only When Their Use