What is a resource?

What is a resource?

• A. The capacity of a firm to perform some internal activity competently
• B. A cross-functional capability
• C. A competitive asset that is owned or controlled by a company
• D. A social relationship network

Answer: (A)

Resources are the internal assets and abilities a firm can draw on to perform activities. Describing a resource as the capacity of the firm to perform some internal activity competently captures this idea: it highlights that a resource is something the company can mobilize to get work done effectively. This includes not only physical assets but also know-how, routines, and other capabilities that enable tasks to be carried out. A cross-functional capability refers to the ability to coordinate across functions, which is a broader, integrated skill rather than a single resource. A competitive asset owned or controlled by the company points more to ownership of an asset than to the ongoing capacity to carry out activities. A social relationship network is a specific type of intangible resource, but defining a resource simply as a network narrows the concept rather than describing the general notion of what a resource represents.

Resources are the internal assets and abilities a firm can draw on to perform activities. Describing a resource as the capacity of the firm to perform some internal activity competently captures this idea: it highlights that a resource is something the company can mobilize to get work done effectively. This includes not only physical assets but also know-how, routines, and other capabilities that enable tasks to be carried out.

A cross-functional capability refers to the ability to coordinate across functions, which is a broader, integrated skill rather than a single resource. A competitive asset owned or controlled by the company points more to ownership of an asset than to the ongoing capacity to carry out activities. A social relationship network is a specific type of intangible resource, but defining a resource simply as a network narrows the concept rather than describing the general notion of what a resource represents.