Answer: According to Input/Output (I/O) theorists, Internal resources contribute LEAST to a firm's performance.
I/O theorists suggest that a firm's performance is primarily determined by external factors such as industry structure, the competitive environment, and market conditions. In particular, they emphasize that a firm's success is largely determined by its ability to adapt to and take advantage of the opportunities and threats presented by its external environment.
Economies of scale, barriers to market entry, product differentiation, and level of competitiveness are all external factors that can have a significant impact on a firm's performance. For example, achieving economies of scale can allow a firm to produce goods or services more efficiently, which can give it a cost advantage over competitors. Barriers to market entry can limit competition, making it easier for a firm to maintain its market position. Product differentiation can make a firm's offerings more attractive to customers, while a highly competitive environment can spur innovation and drive firms to improve their performance.
Internal resources, on the other hand, are seen as less important because they are often seen as being easier to imitate or replicate by competitors, and may not provide a sustainable competitive advantage. However, it is worth noting that while I/O theorists place less emphasis on internal resources, other schools of thought, such as the resource-based view, place more importance on internal resources and capabilities in determining firm performance.
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