According to ________ of when vertical integration creates value, vertical integration is valuable when it reduces threats from a firm's suppliers or buyers due to any transaction-specific investments a firm has made.
A) firm capability explanations
B) opportunity-based explanations
C) flexibility-based explanations
D) opportunism-based explanations

Question

Quizplus · Accepted Answer

Opportunism-based explanations suggest that vertical integration is valuable when it reduces threats from suppliers or buyers, especially when a firm has made transaction-specific investments that could be exploited by these parties.

According to ________ of When Vertical Integration Creates Value, Vertical