Introduction to IB chapter 4 Flashcards
Competitive advantage
The ability of a firm to outperform its rivals
Primary resources
Tangible and intangible assets as well as human resources that a firm uses to choose and implement its strategies
VRIO framework
A resource-based model that analyzes resources based on their value (V), rarity (R), imitability (I), and organizational support (O) for value creation.
Capabilities
The extent to which a company uses resources to achieve its organizational objectives
Goodwill
The value of a firm’s abilities to develop and leverage its reputation
Dynamic capabilities
Advanced skills that allow an organization to continuously adapt to new technologies and changes in its external environment
Social complexity
The intricate social structures and relationships that characterize the organization of many firms.
Appropriability
The firm’s capacity to capture and benefit from the value it creates.
Causal ambiguity
The challenge of pinpointing the specific factors that lead to a firm’s successful performance.
Outsourcing
Delegating a specific activity to an external supplier who performs it on behalf of the firm.
Business Process Outsourcing (BPO)
The practice of outsourcing business services like IT, human resources, or logistics to external providers.
Nearshoring
Offshoring to a nearby country, typically within the same region, such as Europe.
Domestic outsourcing
Hiring an external firm within the same country to carry out a particular task
Reshoring
Bringing activities back to a company’s home country
Offshore outsourcing
Contracting an external firm located in another country to perform a specific activity
