Formal linkage mechanisms should be used when companies:
A)exchange specific assets and uncertainty is high.
B)have few possible exchange partners and uncertainty is low.
C)exchange nonspecific assets and have few exchange partners.
D)exchange specific assets and have many possible exchange partners.

Question

Quizplus · Accepted Answer

Formal linkage mechanisms are appropriate when companies exchange specific assets and uncertainty is high, as they provide structured agreements to manage risks and ensure commitments are met.

Formal Linkage Mechanisms Should Be Used When Companies