The concepts of flexibility and real options are closely related to the importance of history and ________ described as potential sources of sustained competitive advantage.
A)cost control
B)causal ambiguity
C)path dependence
D)commitment

Question

Quizplus · Accepted Answer

Path dependence refers to the idea that the historical choices made by a company can restrict its future choices and opportunities. Flexibility and real options are important tools for managing path dependence and ensuring that a company can adapt to changing circumstances while still building on its historical advantages. Causal ambiguity, cost control, and commitment are related concepts but do not directly address the importance of history and path dependence for sustained competitive advantage.

The Concepts of Flexibility and Real Options Are Closely Related