Because the firm combines tangible and intangible resources to create capabilities,
A) these capabilities are fragile and subject to sudden loss of value.
B) they are often based on developing, carrying, and exchanging information and knowledge through the firm's human capital.
C) they are easily transferred from one firm to another as employees change jobs.
D) these types of capabilities are considered primary activities in the value chain.

Question

Quizplus · Accepted Answer

Intangible resources such as knowledge and information are often developed, carried, and exchanged through a firm's human capital. Therefore, the capabilities that result from combining tangible and intangible resources are often based on these intangible resources, making B the correct choice. A is incorrect because while these capabilities may be vulnerable, they are not necessarily fragile. C is incorrect because capabilities that rely on a firm's unique combination of resources are difficult to transfer to other firms, even if employees leave. D is incorrect because primary activities in the value chain are related to the production and delivery of a firm's product or service, not necessarily to its capabilities.

Because the Firm Combines Tangible and Intangible Resources to Create