grant chapter 5

The main implication of the resource-based view of firm is:

Group of answer choices

The boundaries of the firm are determined by the firm's resources rather than by transaction costs

The resources of the firm are the foundation for its capabilities

Resources and capabilities are the principal basis for firm strategy and the primary source of profitability

Ricardian rents are a more important source of firm profitability than monopoly rents

There are two types of economic rent (pure profit):

Group of answer choices

Monopoly rent and Ricardian rent

Market power and competitive advantage

Monopoly rent and quasi rent

Cost advantage and differentiation advantage

Organizational culture is an important resource for most business enterprises because:

Group of answer choices

It help employees to understand one another

It has a powerful motivating effect

It influences the capabilities a business develops and how these capabilities are exercised

It shapes a business's vision

Prahalad and Hamel's "core competences" tend to be broad-based organizational capabilities that:

Group of answer choices

Integrate a number of more specialist organizational capabilities

Are also known as "dynamic capabilities"

Are found primarily in Japanese companies

Are mainly concerned with technological expertise