A company's proprietary expertise that makes it different its competitors and helps to maintain its competitive advantage can be discussed under the following theory:
A) internalization or technological theory.
B) Internalization or transaction cost theory.
C) Internalization or regional cost theory.
D) Internalization or transnational theory.
E) Internalization or traditional cost theory.

Question

Quizplus · Accepted Answer

The proprietary expertise that makes a company different from its competitors is its intellectual property (IP), which is discussed under the internalization or transaction cost theory. This theory suggests that a company may decide to internalize the production of its proprietary technology rather than license it to external partners to avoid the transaction costs associated with monitoring and enforcing IP rights. Thus, internalizing the production of its IP helps the company to maintain its competitive advantage.

A Company's Proprietary Expertise That Makes It Different Its Competitors