Institutional theory suggests that firms choose hierarchy over markets because ______.
A) it is more efficient
B) it is functionally necessary
C) it is culturally familiar
D) it is easier

Question

Quizplus · Accepted Answer

Institutional theory posits that firms often choose hierarchy over markets because it aligns with culturally familiar practices and norms, rather than purely efficiency or necessity.

Institutional Theory Suggests That Firms Choose Hierarchy Over Markets Because