Vendor partnerships based on relational contacts-such as the relationships between Toyota and its major component suppliers-are more successful than either pure market contracts or vertical integration because:
A) They give the buyer immense bargaining power over its suppliers.
B) They offer similar benefits of high-powered incentives and flexibility that market contracts.
C) They offer similar coordination benefits as vertical integration.
D) They combine the coordination benefits of vertical integration with the incentive and flexibility benefits of market contracts.
Correct Answer:
Verified
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