The case of the Kodak - IBM outsourcing agreement for payroll software indicates that ______ can cause significant long-term holdup problems.
A)competitive markets
B)technological change
C)specific assets
D)quality control issues

Question

Quizplus · Accepted Answer

The case of Kodak - IBM outsourcing agreement for payroll software indicates that specific assets, such as software, can cause significant long-term holdup problems. In this case, Kodak was unable to switch to another service provider easily due to the specific nature of the software developed by IBM. As a result, Kodak became dependent on IBM for the long-term, leading to holdup problems. Competitive markets, technological change, and quality control issues may also create challenges in outsourcing, but they were not the primary cause of holdup problems in the Kodak - IBM case.

The Case of the Kodak - IBM Outsourcing Agreement for Payroll