Resource similarity is defined as the extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm.
The statement conveying the definition of resource similarity with respect to the possession of the strategic endowment of the focal firm is TRUE.
Explanation:
As far as the types of resources between two or more competitors are similar, the strategies that the competitors adopt would most probably be similar to each other.
In such a situation, it is difficult for the firms to derive advantage from the utility of resources at large owing to the similarity of resources and the initial costs being the same.
