Which of the following statements is most consistent with the I/O view? Performance of a firm is most directly attributable to:
A) the power of the financial market stakeholders.
B) the resources the firm possesses.
C) the profitability of the industry in which the firm competes.
D) hypercompetition within the industry.

Question

Quizplus · Accepted Answer

The I/O view emphasizes that external factors, such as the industry structure in which a firm operates, are the primary drivers of a firm's performance. As such, the profitability of the industry in which a firm competes is the most consistent with the I/O view. Factors such as the power of financial market stakeholders and hypercompetition may contribute to a firm's performance, but they are not the primary drivers according to this perspective. B is misleading, as while resources are important, the I/O View emphasizes that they are not sufficient to explain a firm's performance without considering external factors.

Which of the Following Statements Is Most Consistent with the I/O