The more formal the linkage mechanism, the more control organizations have over each other's behavior.

Question

Quizplus · Accepted Answer

A formal linkage mechanism, such as a contract or a joint venture agreement, typically includes specific terms and conditions that outline the responsibilities and obligations of each party. This level of detail and clarity gives organizations more control over each other's behavior, as they can reference the agreement when issues arise and enforce compliance through legal means if necessary. In contrast, informal linkages, such as partnerships or alliances, may have less clearly defined roles and responsibilities, making it more difficult to exert control over each other's behavior.

The More Formal the Linkage Mechanism, the More Control Organizations