Which of the following firms is most likely to have a sustained competitive advantage based on the VRIO framework?
A) A firm with valuable but common resources and capabilities
B) A firm with valuable and rare but imitable resources and capabilities
C) A firm with valuable, rare, inimitable resources, and organizationally capabilities
D) A firm with non-value-adding resources and capabilities

Question

Which of the following firms is most likely to have a sustained competitive advantage based on the VRIO framework? 
A) A firm with valuable but common resources and capabilities 
B) A firm with valuable and rare but imitable resources and capabilities 
C) A firm with valuable, rare, inimitable resources, and organizationally capabilities 
D) A firm with non-value-adding resources and capabilities

Quizplus · Accepted Answer

According to the VRIO framework, for a firm to have a sustained competitive advantage, it must possess resources and capabilities that are Valuable, Rare, Inimitable, and Organized (VRIO). A firm with valuable, rare, inimitable resources, and organizationally capabilities is most likely to have a sustained competitive advantage as these resources and capabilities are difficult for competitors to replicate, giving the firm a unique advantage over its competitors. Firms with common or non-value-adding resources and capabilities are less likely to have a sustained competitive advantage as they can be easily imitated by competitors. Therefore, choice C is the best option as it satisfies all the VRIO criteria.

Which of the Following Firms Is Most Likely to Have