Assume a firm's resources and capabilities are costly to imitate. This is because rival companies do not clearly understand the relationship between the resources and capabilities controlled by the firm. In this case, the firm's competitive advantage is protected against imitation by
A) path dependence.
B) dependence complexity.
C) causal ambiguity.
D) social complexity.

Question

Quizplus · Accepted Answer

Causal ambiguity describes a situation in which the cause and effect of a phenomenon are not readily apparent. In the given scenario, the firm's competitive advantage is protected against imitation by causal ambiguity.

Assume a Firm's Resources and Capabilities Are Costly to Imitate