In Japan, the center firm in a strategic network of vertical relationships might be expected to undertake all of the following EXCEPT
A) reducing its transaction costs by promoting longer-term contracts with subcontractors.
B) enabling engineers in upstream companies to have better communication with those companies with whom it has contracts for services.
C) encouraging subcontractors to modernize their facilities and providing them with technical and financial assistance to do so.
D) decreasing communications between network members to reduce communication costs.

Question

Quizplus · Accepted Answer

Decreasing communications between network members would not be expected as it could harm the relationships and information sharing that are crucial for a successful strategic network. The other options support the idea of establishing strong vertical relationships and enhancing collaboration between companies within the network.

In Japan, the Center Firm in a Strategic Network of Vertical