Answer to Question #207648 in Management for Bob

Question

The are two critical assumptions underpinning the resource-based model of competitive advantage. One of these is resource heterogeneity. Briefly explain what this means. Provide one example of a heterogeneous resource?

Answer 1

Resource heterogeneity means that when a firm holds a resource or capability that is simultaneously owned by a large number of other enterprises, that resource cannot create a competitive advantage. Firms may make significant efforts in building information as an example of the Heterogeneity resource.