The value of a firm's portfolio of resources and capabilities is directly affected by ________.
A) the reactions of competitors
B) the dynamic nature of the competitive environment
C) management's risk tendency
D) its capability to reconfigure resources

Question

Quizplus · Accepted Answer

The value of a firm's portfolio of resources and capabilities is directly affected by its capability to reconfigure resources. This is because the dynamic nature of the competitive environment and the reactions of competitors require firms to continually adapt and reconfigure their resources and capabilities to remain competitive. Management's risk tendency may also play a role in how resources are deployed and reconfigured, but it is not the primary factor influencing the value of a firm's portfolio.

The Value of a Firm's Portfolio of Resources and Capabilities