Internalization theory suggests that what an organization is good at should not be outsourced without very careful consideration.

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According to internalization theory, an organization's core competencies and capabilities should not be readily outsourced without careful consideration. This is because those capabilities are what give the organization a competitive advantage and are difficult for competitors to replicate. Outsourcing them could lead to a loss of competitive advantage and ability to innovate.

Internalization Theory Suggests That What an Organization Is Good at Should