Improvements in production techniques that are based on __________________ are easily imitated, while those based on _________________ are more difficult to imitate.

Question

BlackTom AI · Accepted Answer

The question asks about improvements in production techniques and how easily they can be imitated, distinguishing between two sources: capital equipment and organizational improvements.

Since the answer options are not provided in the data, I cannot evaluate each listed choice individually. However, I can reason about the stated pairing: improvements based on capital equipment are generally easier to imitate, whereas improvements based on organizational capabilities are harder to imitate.

Rationale for the statement that capital equipment-based improvements are easily imitated: capital equipment and physical assets can be purchased or replicated by competitors. If a firm adopts a new machine, a new process layout, or advanced tooling, rivals can often acquire similar equipment or implement parallel processes, leading to rapid diffusion of that improvement across the industry. This makes the competitive advantage short-lived unless reinforced by other factors.

Rationale for the statement that organizational improvements are harder to imitate: organizational improvements involve routines, culture, management practices, knowledge, and social capital that are embedded in people and routines. These aspects tend to develop over time, are tacit, context-specific, and not easily codified or transferred through mere replication of physical assets. As a result, catching up requires building comparable organizational capabilities, which is more time-consuming and more difficult for competitors to mimic exactly.

In summary, the given pairing aligns with common theories of competitive advantage and diffusion of innovations: tangible production equipment can be more readily replicated, while the more subtle, people-centered organizational improvements resist quick imitation.

STRT4501.61924.202560 Low-Cost Exercise

Improvements in production techniques that are based on __ are easily imitated, while those based on _ are more difficult to imitate.

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