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1. In terms of the build-borrow-buy framework, a firm's internal resources are considered to be supportive...

1. In terms of the build-borrow-buy framework, a firm's internal resources are considered to be supportive of internal development when they

a) are different from those that need to be developed and superior to those of competitors in the targeted area.

b) similar to those that need to be developed and superior to those of competitors in the targeted area.

c) different from those that need to be developed and inferior to those of competitors in the targeted area.

d) similar to those that need to be developed and inferior to those of competitors in the targeted area.

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Answer #1

In terms of the build-borrow-buy framework, a firm's internal resources are considered to be supportive of internal development when they

  • (b) similar to those that need to be developed and superior to those of competitors in the targeted area.

The firm evaluate relevancy by testing whether resources are - similar to those it needs to develop and superior to those of competitors in the targeted area. If both these conditions are met, then the firm's internal resources are relevant and the firm should pursue internal development.

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