In the context of interorganizational processes, which of the following is a disadvantage of modular organizations?
A) They cost significantly more to run than traditional organizations because of the addition of outsourcing costs to their fixed costs.
B) They are characterized by a loss of control that occurs when key business activities are outsourced to other companies.
C) They are slow because members cannot combine their efforts to meet customers' needs.
D) They are unstable and have temporary relationships in a network alliance.

Question

Quizplus · Accepted Answer

A disadvantage of modular organizations in the context of interorganizational processes is that they may have a loss of control over key business activities as they outsource them to other companies. This means that they might not have direct control over the quality, efficiency, or timeliness of the outsourced services. This loss of control may also decrease the organization's ability to respond to changes in the marketplace or customer needs.

In the Context of Interorganizational Processes, Which of the Following