The perceived importance of resources and capabilities to firms' strategies became prominent because:
A)Top managers have understood the importance of competitive advantages from major academic papers published at the time.
B)The general environment has become more unstable and the structure of industries has evolved towards simultaneously more cooperation and more competition
C)The planning school of strategy has been heavily criticized and planning departments in large firms have almost disappeared
D)It became increasingly apparent that competitive advantage was more important to profit generation than mere characteristics of the industry as a whole.

Question

Quizplus · Accepted Answer

It became increasingly apparent that competitive advantage was more important to profit generation than mere characteristics of the industry as a whole. As firms sought to gain competitive advantage, they began to recognize the vital importance of their internal resources and capabilities. This realization led to an increased focus on internal factors, such as resources and capabilities, and a shift away from external factors, such as industry characteristics.

The Perceived Importance of Resources and Capabilities to Firms' Strategies