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