However, despite TQM’s apparent widespread dissemination and the claim by adherents that any firms can imitate TQM there are powerful reasons to believe TQM is imperfectly imitable. The diffusion of innovation literature provides a useful perspective on this issue. Whereas the resource literature focuses mainly on resource imitation from the perspective of firms seeking to protect competitive advantage, the diffusion of innovation approach takes the perspective of the potential adopter. This line of research shows that firms will not always attempt to imitate resources that produce advantage for competitor, and the diffusion of innovation depends on the following factors (1) perceived relative advantage-the extent to which adopter believe the innovation is better than current practice (2) compatibility-the degree to which an innovation is perceived by adopter as consistent with their needs, values and experiences (3) simplicity-the degree to which the innovation as understandable and implementable (4) trialability-the degree to which an innovation can be experimented with on a limited basis and (5) observability-the degree to which an innovation and its benefits can be observed by the potential adopter.