Complementarity between a firm's management practices means that:
A)None: the concepts are identical in practice
B)The performance impact of a generic practice is independent of the firm's other practices;the impact of a contextual practice depends upon the firm's other practices
C)Generic practices relate to basic functions;contextual practices tend to be more idiosyncratic
D)A generic practices offers incremental performance improvement;a contextual practices leads to a new fitness peak.

Question

Quizplus · Accepted Answer

Complementarity between a firm's management practices means that the impact of a contextual practice is dependent on the firm's other practices. However, the impact of a generic practice is independent of the firm's other practices. Therefore, option B correctly explains the complementarity between the firm's management practices. Option A is incorrect because the concepts may not be identical in practice. Option C is incorrect because both generic and contextual practices can relate to basic functions or be idiosyncratic. Option D is incorrect because a contextual practice can lead to incremental performance improvement, and a generic practice can lead to a new fitness peak in some cases.

Complementarity Between a Firm's Management Practices Means That