In the Resource-Based Model, which element directly follows Resources?

In the Resource-Based Model, which element directly follows Resources?

• A. Capability
• B. Competitive Advantage
• C. An Attractive Industry
• D. Strategy Formulation and Implementation

Answer: (A)

In the Resource-Based Model, resources are the inputs a firm owns or controls, like assets and know-how. The element that directly follows those resources is capabilities—the organization’s ability to combine, coordinate, and deploy those resources through routines, processes, and managerial know-how. Capabilities turn scattered assets into functioning activities, enabling the firm to perform tasks more effectively and innovate. It’s this capacity to mobilize resources that paves the way for competitive advantage. External industry attractiveness or the steps of strategy formulation and implementation come later in the thought process, not as the immediate next link after resources.

In the Resource-Based Model, resources are the inputs a firm owns or controls, like assets and know-how. The element that directly follows those resources is capabilities—the organization’s ability to combine, coordinate, and deploy those resources through routines, processes, and managerial know-how. Capabilities turn scattered assets into functioning activities, enabling the firm to perform tasks more effectively and innovate. It’s this capacity to mobilize resources that paves the way for competitive advantage. External industry attractiveness or the steps of strategy formulation and implementation come later in the thought process, not as the immediate next link after resources.