__________ suggests that organizations can choose to purchase the goods or services they need in the competitive marketplace or make those goods and services internally.

Question

Quizplus · Accepted Answer

Transaction cost theory suggests that organizations can choose to purchase goods and services they need in the competitive marketplace or make those goods and services internally, based on transaction costs. If the transaction costs of purchasing are lower than those of making, the organization should purchase the goods or services, and vice versa. Thus, this theory provides a framework for making the make or buy decision.

__________ Suggests That Organizations Can Choose to Purchase the Goods