The term "resource-based theory of the firm" means that
A)Organizations must strive to conserve natural resources
B)Organizations are a bundle of resources, which includes employees that are used to take advantage of external opportunities.
C)Achieving sustainability is part of the organizational mission
D)An organization has sufficient financial resources to seek out and hire diverse people.

Question

Quizplus · Accepted Answer

The resource-based theory of the firm suggests that an organization is a bundle of resources, including employees, that is used to take advantage of external opportunities. It focuses on identifying and utilizing the unique set of resources that an organization possesses to create a competitive advantage in the marketplace. This theory emphasizes the importance of having valuable, rare, and difficult to imitate resources that can help a firm stand out from its competitors.

The Term "Resource-Based Theory of the Firm" Means That