The assumption under the resource-based model that firm resources and capabilities differ across firms and this leads to performance differences is referred to as:
A) Resource homogeneity
B) Resource mobility
C) Resource valuability
D) Resource heterogeneity

Question

Quizplus · Accepted Answer

Resource heterogeneity is one of the critical assumptions under the resource-based view model. This assumes that a firms resources and capabilities are different from its rivals and this leads to performance differences between firms as evidenced by Southwest Airlines.

The Assumption Under the Resource-Based Model That Firm Resources and Capabilities