How does causal ambiguity act as an isolating mechanism for organizations?
A) It makes it difficult for the competitors to understand why a company has been so successful.
B) It creates a situation in which different social and business systems interact with one another.
C) It makes it difficult for competitors to deploy their resources by creating ambiguity within their organizational structures.
D) It makes it difficult for competitors to imitate core competencies quickly due to time compression diseconomies.

Question

Quizplus · Accepted Answer

Causal ambiguity describes a situation in which the cause and effect of a phenomenon are not readily apparent. To formulate and implement a strategy that enhances a firm's chances of gaining and sustaining a competitive advantage, managers need to have a hypothesis or theory of how to compete. Understanding the underlying reasons of observed phenomena is, however, far from trivial.

How Does Causal Ambiguity Act as an Isolating Mechanism for Organizations