Intangible Capabilities in Business
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Questions and Answers

Intangible capabilities are easy to imitate because they are easily understood.

False

Causal ambiguity is the reason why intangible capabilities are easily imitated.

False

Intangible capabilities are difficult to imitate because they are tangible.

False

The source of intangible capabilities can be easily determined by competitors.

<p>False</p> Signup and view all the answers

Causal ambiguity is a key factor that makes intangible capabilities difficult to imitate.

<p>True</p> Signup and view all the answers

Study Notes

Intangible Capabilities

  • Intangible capabilities are difficult for competitors to imitate
  • The difficulty in imitation stems from the inability to determine the exact source of the capability's creation
  • This phenomenon is sometimes referred to as causal ambiguity

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Description

Assess your understanding of intangible capabilities, which are difficult for competitors to imitate due to casual ambiguity, and their role in business strategy.

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