MGT 3659 Chapter Notes - Chapter 4: Dynamic Capabilities, Resource-Based View, Path Dependence
Document Summary
Activities distinct and fine-grained business processes that enable firms to add incremental value by transforming input into goods and services. Capabilities organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically. Causal ambiguity a situation in which the cause and effect of a phenomenon are not readily apparent. Core competencies unique strengths, embedded deep within a firm, that are critical to gaining and sustaining 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. Costly-to-imitate resource one of the four key criteria in the vrio framework. A resource is costly to imitate if firms that do not possess the resource are unable to develop or buy the resource at a comparable cost. Dynamic capabilities a firm"s ability to create, deploy, modify, reconfigure, upgrade, or leverage its resources in its quest for competitive advantage.
