When technology is progressing rapidly,firms are more likely to:
A) commit themselves to fixed assets that will rapidly become obsolete.
B) avoid forming alliances for projects that are risky and complex.
C) use linkages with other specialized firms to access resources they do not possess.
D) avoid becoming more narrowly specialized.

Question

Quizplus · Accepted Answer

When technology is progressing rapidly, firms are more likely to use linkages with other specialized firms to access resources they do not possess. This is because the rapid pace of technological advancement means that firms cannot keep up with all the changes and may lack certain resources or expertise. By forming linkages with other specialized firms, they can collaborate and access the necessary resources and knowledge to keep up with the pace of technological progress. Firms are less likely to commit themselves to fixed assets that will rapidly become obsolete and may avoid becoming more narrowly specialized as technological progress often requires firms to specialize in specific areas. However, they may still form alliances for risky and complex projects.

When Technology Is Progressing Rapidly,firms Are More Likely To