A hub and wheel configuration with a local firm at the hub organizing the interdependencies of a complex array of firm is referred to as a:
A) trade association
B) strategic alliance
C) network
D) joint venture
E) consortia

Question

Quizplus · Accepted Answer

A network refers to a hub and wheel configuration where a local firm at the hub coordinates and organizes the interdependencies of a complex array of firms. This allows the firms to benefit from shared resources, knowledge, and expertise, while still maintaining their independence. A trade association is a group of firms in the same industry that come together to promote the common interests of the industry. A strategic alliance is a voluntary partnership formed between firms to achieve a specific goal. A joint venture is a business agreement in which two or more parties agree to pool their resources to achieve a specific goal, while a consortia is a group of firms that come together to pursue a common goal, such as developing a new technology or product.

A Hub and Wheel Configuration with a Local Firm at the Hub