If a firm's core competency is based on control over proprietary technological know-how,it should avoid _____ and _____ arrangements if possible,to minimize the risk of losing control over that technology.

Question

Quizplus · Accepted Answer

Licensing and joint-venture arrangements involve sharing proprietary technology with other parties, which increases the risk of losing control over it. Wholly owned subsidiaries and exporting, on the other hand, allow a firm to maintain complete control over its proprietary technology. Turnkey contracts may or may not involve the sharing of proprietary technology, so it is not always necessary to avoid them.

If a Firm's Core Competency Is Based on Control Over