The working relationships between modular organizations and outside companies tend to be more stable and longer lasting than the relationships found among the virtual companies in a network alliance.

Question

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Modular organizations have a more centralized structure and established relationships with external companies, leading to a greater degree of stability in their partnerships. In contrast, virtual companies in a network alliance are typically more loosely structured and may have more dynamic relationships with other companies, which could lead to shorter-term partnerships.

The Working Relationships Between Modular Organizations and Outside Companies Tend