Creating resources that meet the VRIO criteria is strategically important to a firm because it
A) helps the firm curb its resource heterogeneity and resource immobility.
B) facilitates greater knowledge diffusion in the industry.
C) leads to competitive parity within the industry.
D) helps the firm to gain and sustain a competitive advantage.

Question

Quizplus · Accepted Answer

Creating resources that meet the VRIO criteria is strategically important to a firm because it helps the firm to gain and sustain a competitive advantage. For a firm to gain and sustain a competitive advantage, its resources and capabilities need to interact in such a way as to create unique core competencies. Only a few competencies may turn out to be core competencies that fulfill the VRIO requirements.

Creating Resources That Meet the VRIO Criteria Is Strategically Important