Although True Ion Inc. and One Electro Inc. operate in the same consumer electronic industry, True Ion Inc. has better sales and brand equity. This is attributed to True Ion Inc.'s commitment to innovation. The company has adequate financial and human capital to invest in research and development, an area in which One Electro Inc. lacks. In this scenario, which of the following critical assumptions of the resource-based view of a firm has been illustrated?

A. resource equality

B. resource heterogeneity

C. resource mobility

D. resource maturity

Question

Business

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23 July, 07:18

Although True Ion Inc. and One Electro Inc. operate in the same consumer electronic industry, True Ion Inc. has better sales and brand equity. This is attributed to True Ion Inc.'s commitment to innovation. The company has adequate financial and human capital to invest in research and development, an area in which One Electro Inc. lacks. In this scenario, which of the following critical assumptions of the resource-based view of a firm has been illustrated?

A. resource equality

B. resource heterogeneity

C. resource mobility

D. resource maturity

+4

Answers (1)

Know the Answer?

Darian Blair · Answer 1

The correct answer is B. resource heterogeneity.

Explanation:

The consideration of the internal sphere as the most relevant aspect of the theory addresses a series of particularities, assumptions of departure, established by the authors who address this approach. Basically they can be reduced to three: Trust, limited rationality and the heterogeneity of resources and capabilities of each company.

Trust is assumed as a starting assumption as it can act as a guide to conduct by facilitating transactions and exchanges, such as those derived from cooperation agreements. The opportunistic approach is not rejected but it is stressed that trust can act as guarantor of economic transactions.