Distinction Resources and Capabilities - Appropriability

4 important questions on Distinction Resources and Capabilities - Appropriability

What are the 3 factors that a resource or capability depends on to be appropriable?

  1. Property rights
  2. Relative bargaining power
  3. Embeddedness

What is meant by the property rights?

The issue of appropriabiliy concerns to allocation of rents where property rights ar not fully defined, this is where the firm owns intangible assets (patents, brand names etc.) but the scope of the property rights may lack precise definition.

Where ownership is ambiguous, relative bargaining power is the primary determinant of the allocation of the rents, between which 2 actors?

The firm and its employees.
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When is the employee well placed to bargain for their contribution? List the 3

When their productivity is clearly identifiable, he/she is mobile, if they have skills that could be offered to other firms.

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