A(n) ________ approach to vertical integration suggests that rather than vertically integrating into a business activity whose value is highly uncertain firms should not vertically integrate and instead should form a strategic alliance to manage this exchange.
A) alliance-based
B) flexibility-based
C) firm capabilities-based
D) opportunism-based

Question

Quizplus · Accepted Answer

A flexibility-based approach to vertical integration suggests that firms should avoid integrating into uncertain business activities and instead form strategic alliances to manage such exchanges, allowing them to remain adaptable to changes.

A(n) ________ Approach to Vertical Integration Suggests That Rather Than