What are the four criteria in the VRIO framework?

• A. Value, Rarity, Imitability, Ownership.
• B. Value, Rarity, Imitability, Organization.
• C. Value, Relevance, Imitability, Organization.
• D. Value, Rarity, Imitability, Access.

Answer: (B)

The main idea is how a resource or capability can produce a sustained competitive advantage by meeting four criteria: Value, Rarity, Imitability, and Organization. A resource must be valuable to enable the firm to exploit opportunities or neutralize threats. It must be rare, meaning not many competitors have it. It must be hard to imitate, so competitors can’t easily copy it. Finally, the firm must be organized to capture the value from that resource—having the right structure, processes, and culture to leverage it effectively.

This set fits because Organization is the component that ensures the firm can actually capitalize on the others. The other options swap in terms like Ownership, Relevance, or Access, which are not part of VRIO. So the correct combination is Value, Rarity, Imitability, Organization.