The R&D function will have the greatest centrality when an organization pursues which of the following strategies?

Question

Quizplus · Accepted Answer

Pursuing a differentiation strategy requires constantly innovating and creating new products or improving existing ones, which is where R&D plays a crucial role. Therefore, the R&D function will have the greatest centrality when an organization pursues a differentiation strategy. Outsourcing may reduce the importance of the R&D function, and low-cost strategies often prioritize cost-cutting instead of innovation. Vertical differentiation may require some R&D, but it does not necessarily require as much innovation as a differentiation strategy.

The R&D Function Will Have the Greatest Centrality When an Organization