________ theory suggests that under conditions of high uncertainty, firms may be unwilling to commit to a particular course of action by engaging in an exchange with a firm and will choose, instead, the strategic flexibility associated with alliances.

Question

Quizplus · Accepted Answer

The theory described in the question is the real options theory, which suggests that firms may choose alliances over traditional exchanges due to the strategic flexibility and option value they provide in uncertain environments. The other options listed (capabilities, transaction cost economics, resource-based) are important theories in the field of strategic management, but they do not specifically address the issue of uncertainty and strategic flexibility in the same way as the real options theory.

________ Theory Suggests That Under Conditions of High Uncertainty, Firms