Capabilities resting upon the complex skills of specific people or teams are exploited much better through diversification than through external contracts

Question

Quizplus · Accepted Answer

When capabilities are spread out through diversification within a business, they can be utilized more effectively than relying on external contracts. This is because teams within the company have a deeper understanding of the skills and strengths of their colleagues and are better able to coordinate and collaborate on projects, leading to more efficient and effective outcomes. External contracts may not have the same level of understanding or investment in the task at hand, leading to possible miscommunications and subpar results.

Capabilities Resting Upon the Complex Skills of Specific People or Teams