Your company, a small software development firm, has attracted many of the top young programmers in your area. As a result, the apps you produce have been praised for their innovative features and intuitive user experience. According to the bathtub metaphor in the dynamic capabilities perspective, what is the best way for you to protect against resource leakage?
A) Invest in an online marketing campaign for existing products to retain customers.
B) Open a satellite office overseas to support the company culture of taking chances.
C) Attempt to undercut the competition by imitating their top-selling product.
D) Improve the benefits package to retain key employees and reduce turnover.

Question

Quizplus · Accepted Answer

According to the bathtub metaphor, resource leakage occurs when employee turnover is high or when the firm does not engage in certain activities for some time and forgets how to do them well. Since your employees are the primary drivers of your reputation for innovation, the best way to protect your stock of intangible resources against resource leakage is to ensure that employees are not recruited away by other firms.

Your Company, a Small Software Development Firm, Has Attracted Many