The VRIO Framework, used in HR function in today’s era, refers to four criteria. Identify the correct answer which stands as correct explanation to VRIO as proposed by Barney?

The correct answer is C. Value-Rarity-Imitability-Organisation.

The VRIO framework is a tool used to analyze the competitive advantage of a firm’s resources. The framework stands for Value, Rarity, Imitability, and Organization.

• Value: A resource is valuable if it enables a firm to create or exploit opportunities or to neutralize threats in the environment.
• Rarity: A resource is rare if there are few or no other firms that possess it.
• Imitability: A resource is inimitable if it is difficult for other firms to copy or acquire.
• Organization: A resource is organized if it is effectively managed and exploited.

A resource that is valuable, rare, inimitable, and organized can be a source of competitive advantage for a firm.

Option A is incorrect because it does not include the fourth criterion of the VRIO framework, which is organization.

Option B is incorrect because it does not include the first criterion of the VRIO framework, which is value.

Option D is incorrect because it does not include the second criterion of the VRIO framework, which is rarity.