It would be simply too costly for an airline to pursue a backward integration strategy and enter the airplane manufacturing business. Which of the following theories for explaining a firm's competitiveness is most likely to give executives such insights?
A) Resource-based theory
B) Enactment
C) Transaction cost economics
D) Environmental determinism
E) Institutional theory

Question

Quizplus · Accepted Answer

Transaction cost economics provides insights into the costs associated with different types of transactions, helping executives understand why it might be too costly for an airline to integrate backward into airplane manufacturing.

It Would Be Simply Too Costly for an Airline to Pursue