Relative dynamism of an industry can affect an alliance decision in all of the following ways except ________.
A) stable environments are much more forgiving of mistakes
B) stable environments allow firms to participate in more alliances
C) stable environments allow firms the luxury of learning from their mistakes
D) dynamic environments allow firms to participate in more alliances

Question

Quizplus · Accepted Answer

Dynamic environments allow firms to participate in more alliances because they may need to adapt quickly and form partnerships to keep up with market changes. Stable environments may allow firms to participate in more alliances as well, but the other options (A, B, and C) all suggest that stable environments are more advantageous for forming alliances, which is not necessarily true.

Relative Dynamism of an Industry Can Affect an Alliance Decision