Which concept means a set of assets that requires cross-functional coordination to create value?

• A. Resource
• B. VRIN
• C. Capability
• D. Competence

Answer: (C)

Capability is the organizational ability to integrate and coordinate a set of assets and routines across functions to create value. This emphasizes that value comes from how resources—people, processes, technologies, and other assets—are mobilized together through cross-functional collaboration, not from any single asset alone. A resource is an asset the firm owns and can use, but by itself it doesn’t guarantee value without being woven into coordinated activities. VRIN is a framework for judging resources' potential, not the concept of coordinated value creation. Competence is often used interchangeably with capability, but in this context the emphasis is on the integrated set of assets and processes that enable cross-functional value creation.