Which of the following correctly identifies a factor in the concept of "resource heterogeneity"?

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

The concept of "resource heterogeneity" refers to the idea that resources and capabilities are not the same across different firms. This means that each firm possesses unique assets, skills, and capabilities that can contribute to its competitive advantage. The differences in resources—such as technological expertise, brand reputation, financial resources, or human capital—allow firms to compete in distinct ways and may influence their overall strategy and performance.

Option B highlights this key aspect, indicating that resources and capabilities indeed vary by firm, which is fundamental to the understanding of strategic management and how firms can achieve differentiation in the marketplace.

The other options do not accurately capture the essence of resource heterogeneity. Saying that resources are uniform across firms, that all firms utilize identical strategies, or that resources are easily transferable oversimplifies or misrepresents the complexities of how firms operate and compete in diverse environments. Each of these incorrect options overlooks the premise that the uniqueness of resources contributes to strategic disparities and competitive positioning among firms.

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