When a firm's competitive advantage is based on technological competence, a joint venture is the preferred mode of entry into a foreign market because it reduces the risk of losing control over that competence.

Question

Quizplus · Accepted Answer

A joint venture may actually increase the risk of losing control over technological competence, as it involves sharing technology and knowledge with a partner, which could lead to potential leaks or misuse.

When a Firm's Competitive Advantage Is Based on Technological Competence