In the Context of Interorganizational Processes, Which of the Following

question 79

Multiple Choice

In the context of interorganizational processes, which of the following is a disadvantage of modular organizations?

• A) They cost significantly more to run than traditional organizations because of the addition of outsourcing costs to their fixed costs.
• B) They are characterized by a loss of control that occurs when key business activities are outsourced to other companies.
• C) They are slow because members cannot combine their efforts to meet customers' needs.
• D) They are unstable and have temporary relationships in a network alliance.

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Definitions:

Players

In an economic context, players refer to individuals or entities actively participating in a market or economic model.

Strategies

Plans or methods developed to achieve a goal or solve a problem.

Nash Equilibrium

A concept within game theory where no participant can gain by unilaterally changing their strategy if the strategies of the others remain unchanged.

Optimal Strategy

The best or most efficient course of action to achieve a specific goal or maximize a particular set of outcomes under given conditions.