What causes core capabilities to become core rigidities?
A) Changes in the external and internal environment
B) Inertia and competition
C) Strategic myopia and managerial inflexibility
D) Lack of knowledge and poor use of assets

Question

Quizplus · Accepted Answer

Core capabilities become core rigidities primarily due to strategic myopia and managerial inflexibility, which refers to the inability or unwillingness of a company's management to see the need for change or adapt to new circumstances in the internal and external environment. In other words, their rigidity in adhering to established core capabilities prevents them from responding to changing market conditions or taking advantage of new opportunities. While changes in the internal and external environment, inertia, competition, and poor use of assets may contribute to the problem, they are not the primary cause.

What Causes Core Capabilities to Become Core Rigidities