The difference between a resource and a capability is:
A)A resource is a productive asset; a capability refers to what the firm can do
B)A resources tend to be immobile assets; capabilities are dynamic
C)A resource is a weak source of competitive advantage whereas a capability is a strong one
D)A capability is a type of resource

Question

Quizplus · Accepted Answer

A resource can be a physical, financial, human, or technological asset that a firm possess. On the other hand, capability refers to what the firm can do by leveraging its resources. Capability is a firm's ability to orchestrate or combine its resources to achieve a desired outcome or to create value. Thus, the main difference between a resource and a capability is that a resource is a productive asset, while a capability is the ability to use those productive assets effectively.

The Difference Between a Resource and a Capability Is