Which of the following is NOT a component of the VRIO framework?

The VRIO framework is a strategic analysis tool used to evaluate a company's resources and capabilities to determine their potential for sustained competitive advantage. The components of the VRIO framework are valuable, rare, inimitable (not mentioned in the options but often associated with innovative practices), and organized to capture value.

In this context, the term "innovative" does not align with the established components of the VRIO framework. While innovation can contribute to valuable and rare resources, it is not a standalone criterion within the VRIO analysis. The correct components focus on whether resources or capabilities bring value, their rarity, their difficult-to-imitate nature, and the organization's ability to leverage these resources effectively.

Valuable resources allow an organization to exploit opportunities or neutralize threats. Rare resources are not widely possessed by competitors. The term "organized to capture value" emphasizes that a company must have the right structures and systems in place to take advantage of its resources and capabilities. Thus, the presence of these three components confirms that "innovative" is not one of them.