Organizational capabilities are virtually always
A)knowledge based, residing in people and in the company's intellectual capital, or in organizational processes and systems, which embody tacit knowledge.
B)more complex than resources and are exercised only through key personnel.
C)require constant evaluation to ensure cooperative support from management.
D)easier and less challenging to categorize than resources because there are fewer to be concerned about.
E)reflective of the industry's driving forces.

Question

Quizplus · Accepted Answer

Organizational capabilities are primarily knowledge-based and reside in people and the intellectual capital of the organization. They also include organizational processes and systems that embody tacit knowledge, making option A the correct choice.

B) This statement is incorrect as organizational capabilities are not exercised solely through key personnel, but rather embedded within the organization as a whole.

C) While it is important to evaluate and ensure cooperative support from management, it is not the defining characteristic of organizational capabilities.

D) This statement is inaccurate as both resources and capabilities must be carefully considered when analyzing an organization's strengths and weaknesses.

E) Organizational capabilities are influenced by the industry's driving forces, but they are not necessarily reflective of them.

Organizational Capabilities Are Virtually Always