What term describes a framework used in strategy based on resource heterogeneity which posits that for a competitive advantage to be sustainable,it must be underpinned by resource capabilities that are scarce and imperfectly mobile?
A)Persistence of profitability for the firm
B)Capability-based theory of the firm
C)Regression to the mean
D)Resource-based theory of the firm
E)Five-forces framework

Question

Quizplus · Accepted Answer

The term being described is the resource-based theory of the firm, which emphasizes the importance of a firm's unique resources and capabilities in achieving sustainable competitive advantage. Option B, the capability-based theory of the firm, is a similar concept but does not specifically refer to the importance of scarce and imperfectly mobile resources. Options A, C, and E are unrelated frameworks and theories in strategy.

What Term Describes a Framework Used in Strategy Based on Resource