Which assumption states that resources tend to be "sticky" and do not move easily from firm to firm?

Prepare for UCF's MAN4720 Strategic Management Capstone Midterm with detailed quizzes, flashcards, and comprehensive explanations. Ensure your success with targeted preparation.

The assumption that resources tend to be "sticky" and do not move easily from firm to firm is known as resource immobility. This concept highlights the difficulty in transferring specific resources — such as human capital, technology, and proprietary knowledge — from one organization to another. Factors contributing to resource immobility may include the unique capabilities developed within a firm that cannot be easily replicated or the investments made in certain resources that tie them to the specific context of that organization.

Resource immobility is significant in strategic management because it emphasizes how some firms can sustain competitive advantages due to their unique resources that cannot be readily acquired or replicated by competitors. This contrasts with the idea of resources being mobile, which suggests that resources can be easily shifted between firms. Understanding resource immobility helps organizations identify and protect their valuable resources, allowing them to maintain their competitive positioning in the market.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy