WPC 480 EXAM QUESTIONS AND ANSWERS
LATEST UPDATE (ALREADY GRADED A+)
tangible resources
resources that have physical attributes and thus are visible
intangible resources
resources that do not have physical attributes and thus are invisible
resource heterogeneity
assumption in the resource-based view that affirm is a bundle of resources and capabilities that differ
across firms
resource immobility
assumption in the resource-based view that a firm has resources that tend to be "sticky" and that do not
move easily from firm to firm
VRIO framework
a theoretical framework that explains and predicts firm-level competitive advantages
valuable resource
One of the four key criteria in the VRIO framework. A resource is valuable if it helps a firm exploit an
external opportunity or offset an external threat.
rare resource
One of the four key criteria in the VRIO framework. A resource is rare if the number of firms that posses
it is less that the number of firms it would require to reach a state of perfect competition.
costly-to-0imitate resource
One of the four key criteria in the VRIO framework. A resource is costly to imitate if firms that do not
posses the resource are unable to develop or buy the resource at a comparable cost.
organized to capture value
One of the four key criteria in the VRIO framework. The characteristic of having in place an effective
organizational structure, processes, and systems to fully exploit the competitive potential of the firm's
resources, capabilities, and competencies.
isolating mechanisms
Barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy.
, path dependence
A situation in which the options one faces in the current situation are limited by decisions made in the
past.
casual ambiguity
A situation in which the cause and effect of a phenomenon are not readily apparent.
social complexity
A situation in which different social and business systems interact with one another.
intellectual property (IP) protection
A critical intangible resources that can provide a strong isolating mechanism, and thus help to sustain a
competitive advantage.
core rigidity
A former core competency that turned into a liability because the firm failed to hone, refine, and
upgrade the competency as the environment changed.
dynamic capabilities
A firm's ability to create, deploy, modify, reconfigure, upgrade, or leverage its resources in its quest for
competitive advantage.
dynamic capabilities perspective
A model that emphasizes a firm's ability to modify and leverage its resource base in a way that enables it
to gain and sustain competitive advantage in a constantly changing environment.
resource stocks
The firm's current level of intangible resources.
resource flows
The firm's level of investments to maintain or build a resource.
value chain
The internal activities a firm engages in when transforming inputs into outputs; each activity adds
incremental value.
primary activities
Firm activities that add value directly by transforming inputs into outputs as the firm moves a product or
service horizontally along the internal value chain.
support activities
Firm activities that add value indirectly, but are necessary to sustain primary activities.
LATEST UPDATE (ALREADY GRADED A+)
tangible resources
resources that have physical attributes and thus are visible
intangible resources
resources that do not have physical attributes and thus are invisible
resource heterogeneity
assumption in the resource-based view that affirm is a bundle of resources and capabilities that differ
across firms
resource immobility
assumption in the resource-based view that a firm has resources that tend to be "sticky" and that do not
move easily from firm to firm
VRIO framework
a theoretical framework that explains and predicts firm-level competitive advantages
valuable resource
One of the four key criteria in the VRIO framework. A resource is valuable if it helps a firm exploit an
external opportunity or offset an external threat.
rare resource
One of the four key criteria in the VRIO framework. A resource is rare if the number of firms that posses
it is less that the number of firms it would require to reach a state of perfect competition.
costly-to-0imitate resource
One of the four key criteria in the VRIO framework. A resource is costly to imitate if firms that do not
posses the resource are unable to develop or buy the resource at a comparable cost.
organized to capture value
One of the four key criteria in the VRIO framework. The characteristic of having in place an effective
organizational structure, processes, and systems to fully exploit the competitive potential of the firm's
resources, capabilities, and competencies.
isolating mechanisms
Barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy.
, path dependence
A situation in which the options one faces in the current situation are limited by decisions made in the
past.
casual ambiguity
A situation in which the cause and effect of a phenomenon are not readily apparent.
social complexity
A situation in which different social and business systems interact with one another.
intellectual property (IP) protection
A critical intangible resources that can provide a strong isolating mechanism, and thus help to sustain a
competitive advantage.
core rigidity
A former core competency that turned into a liability because the firm failed to hone, refine, and
upgrade the competency as the environment changed.
dynamic capabilities
A firm's ability to create, deploy, modify, reconfigure, upgrade, or leverage its resources in its quest for
competitive advantage.
dynamic capabilities perspective
A model that emphasizes a firm's ability to modify and leverage its resource base in a way that enables it
to gain and sustain competitive advantage in a constantly changing environment.
resource stocks
The firm's current level of intangible resources.
resource flows
The firm's level of investments to maintain or build a resource.
value chain
The internal activities a firm engages in when transforming inputs into outputs; each activity adds
incremental value.
primary activities
Firm activities that add value directly by transforming inputs into outputs as the firm moves a product or
service horizontally along the internal value chain.
support activities
Firm activities that add value indirectly, but are necessary to sustain primary activities.
