Which of the following is a true statement about capabilities?
A) Capabilities emerge over time through complex interactions of tangible and intangible resources.
B) Valuable capabilities are based almost entirely on tangible resources.
C) Capabilities based on human capital are more vulnerable to obsolescence than other intangible capabilities because of the tendency for employee knowledge to become outdated.
D) The link between firm financial performance and capabilities is dependent on whether the capabilities are based on tangible or intangible resources.

Question

Quizplus · Accepted Answer

Capabilities are not just based on tangible resources, but also on intangible resources like knowledge, skills, and organizational culture. These resources interact in complex ways over time to create capabilities that are unique to the firm and difficult for competitors to imitate.

Which of the Following Is a True Statement About Capabilities