A disadvantage of joint ventures as a means to acquire new technology is that
A) it is the most expensive and time-consuming way to develop new technology.
B) it makes a firm solely dependent on its internal development capabilities.
C) coordination costs can be high and organizational cultures can clash, limiting the outcomes.
D) purchase of a company can be expensive.
E) it fails to establish a new company.

Question

Quizplus · Accepted Answer

Joint ventures can pose coordination challenges due to potential differences in organizational cultures and practices between the partnering firms, which can limit the success of technology development initiatives. Additionally, joint ventures often require significant time and investment to establish and maintain effective partnerships, which can be a disadvantage compared to other means of acquiring new technology.

A Disadvantage of Joint Ventures as a Means to Acquire