A firm is more likely to develop the internal capacity to perform activities that are strategically important to its success than it is to outsource those activities.

Question

Quizplus · Accepted Answer

Developing internal capacity allows a firm to have greater control over strategic activities and respond more quickly to changes in the market. Outsourcing may be cheaper in the short-term, but it can also result in a loss of control and flexibility.

A Firm Is More Likely to Develop the Internal Capacity