Which of the following factors is not conducive to vertical integration between two adjacent stages of production?
A)Similarity of the optimum scale of production between the two stages
B)Few companies at each of the two stages
C)The need for transaction-specific investments by the firms involved
D)Distinctly different organizational capabilities are required at each stage

Question

Quizplus · Accepted Answer

Vertical integration is more challenging when different stages require distinctly different organizational capabilities, as this can complicate management and integration efforts. The other options (A, B, C) are factors that generally support or encourage vertical integration.

Which of the Following Factors Is Not Conducive to Vertical