When a firm uses an alliance network as a vehicle, the firm is operating as a(n) ________ in a complex array of owned, partially owned, and non-owned businesses.
A) hub
B) spoke
C) wheel
D) axle

Question

Quizplus · Accepted Answer

A hub is a central point that connects multiple spokes or branches. In the context of business, a firm using an alliance network as a vehicle serves as a hub, connecting with multiple other businesses and organizations through alliances and partnerships. This allows the firm to operate in a complex array of owned, partially owned, and non-owned businesses, while still maintaining some level of control and coordination over its activities. The other options - spoke, wheel, and axle - do not accurately capture the role of the firm in this type of network.

When a Firm Uses an Alliance Network as a Vehicle