Resource similarity is defined as the extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm.

Question

Social Studies

Zion Daniels

9 October, 07:33

Resource similarity is defined as the extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm.

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Micaela Dillon · Answer 1

The statement conveying the definition of resource similarity with respect to the possession of the strategic endowment of the focal firm is TRUE.

Explanation:

As far as the types of resources between two or more competitors are similar, the strategies that the competitors adopt would most probably be similar to each other. In such a situation, it is difficult for the firms to derive advantage from the utility of resources at large owing to the similarity of resources and the initial costs being the same.