Research indicates that under normal circumstances in developed economies,vertical integration is more efficient than outsourcing and should be viewed as the default option for most firms.

Question

Quizplus · Accepted Answer

There is no one-size-fits-all approach to determining the most efficient organizational structure for a firm. Factors such as the industry, market conditions, and technological advancements can all impact whether vertical integration or outsourcing is the most effective option. Additionally, firms may also use a combination of both approaches to achieve optimal efficiency. Therefore, it is not accurate to say that vertical integration is always more efficient than outsourcing in developed economies.

Research Indicates That Under Normal Circumstances in Developed Economies,vertical Integration