Companies are more likely to form network structures when
A)they want to minimize the effects of market forces for their resources.
B)they operate in an environment where technology is changing quickly.
C)they want to maximize control over manufacturing and other business processes.
D)they want to keep as many skills and core competencies in-house as possible.
E)they want to do all of these.

Question

Quizplus · Accepted Answer

When companies operate in an environment where technology is changing quickly, forming network structures allows them to access specialized knowledge and skills from a variety of sources. This helps to keep them up-to-date with the latest technological advancements and maintain a competitive edge. Option A is incorrect as forming network structures does not minimize the effects of market forces, but rather helps companies adapt to them. Option C is incorrect as network structures may involve outsourcing of some business processes to specialized partners. Option D is incorrect as network structures often involve collaborating with external partners to access specialized skills and knowledge. Option E is incorrect as not all companies necessarily want to keep all their core competencies in-house.

Companies Are More Likely to Form Network Structures When