To protect against opportunism within an alliance relationship, a firm could minimize the threat by:
A)Walling off critical capabilities.
B)Swapping critical capabilities through credible commitments.
C) Holding each other "hostage."
D) All of the above.

Question

To protect against opportunism within an alliance relationship, a firm could minimize the threat by:
A)​Walling off critical capabilities.
B)​Swapping critical capabilities through credible commitments.
C) ​Holding each other "hostage."
D) ​All of the above.

Quizplus · Accepted Answer

All of the above can be used to minimize the threat of opportunism within an alliance relationship. Walling off critical capabilities can make it more difficult for one partner to take advantage of the other. Swapping critical capabilities through credible commitments creates a mutual dependence between partners, making it less likely for one to act opportunistically. Holding each other "hostage" by having the ability to inflict harm on each other can deter opportunistic behavior.

To Protect Against Opportunism Within an Alliance Relationship, a Firm