Which term describes activities that add value indirectly but are essential for sustaining primary activities?

Support activities are crucial because they enable and enhance the effectiveness of primary activities, which are directly involved in creating a product or service. These activities may not directly add value to the end product but are essential for the efficiency and smooth operation of the organization. Examples of support activities include human resource management, technology development, procurement, and firm infrastructure.

By effectively managing support activities, an organization can ensure that its primary activities are more effective and that overall value creation is optimized. Ultimately, the integration of support activities with primary activities helps businesses maintain competitiveness and improve their strategic positioning in the market.