Question 1

Williamson says that market failure problems that result from contracting through vertical integration can be solved through ______, ______ and ______.

Accepted Answer

A)  organizational design/innovation/creative destruction 
B)  information flows/negotiating costs/incentive alignment 
C)  managing uncertainty/being boundedly rational/being fast to market 
D)  none of these 
A)  organizational design/innovation/creative destruction 
B)  information flows/negotiating costs/incentive alignment 
C)  managing uncertainty/being boundedly rational/being fast to market 
D)  none of these B

Question 2

Opportunism means:

Accepted Answer

A)  breaching the spirit of a contract for self-interest 
B)  being serendipitous 
C)  being biased 
D)  managerial corruption 
A)  breaching the spirit of a contract for self-interest 
B)  being serendipitous 
C)  being biased 
D)  managerial corruption A

Question 3

What is concurrent sourcing?

Accepted Answer

A)  using different suppliers 
B)  using different investors 
C)  using both bounded rationality and uncertainty 
D)  using both making and buying 
A)  using different suppliers 
B)  using different investors 
C)  using both bounded rationality and uncertainty 
D)  using both making and buying D

Question 4

When does Parmigiani argue that make-and-buy is likely?

Accepted Answer

A)  when making is expensive 
B)  when outsourcing is difficult 
C)  when the level of asset specificity is mediocre 
D)  when the level of asset specificity is low 
A)  when making is expensive 
B)  when outsourcing is difficult 
C)  when the level of asset specificity is mediocre 
D)  when the level of asset specificity is low

Question 5

TCE has been criticized for its ______ view of markets.

Accepted Answer

A)  over-socialized 
B)  under-socialized 
C)  uncertain 
D)  none of these 
A)  over-socialized 
B)  under-socialized 
C)  uncertain 
D)  none of these

Question 6

What types of organization did Ouchi add to markets and hierarchies?

Accepted Answer

A)  clans 
B)  tribes 
C)  fiefdoms 
D)  slavery 
A)  clans 
B)  tribes 
C)  fiefdoms 
D)  slavery

Question 7

What is an advantage of large, well-resourced firms in their attempts to innovate?

Accepted Answer

A)  They can simply take over innovative new and small firms. 
B)  They have more creative people. 
C)  both of the above 
D)  none of these 
A)  They can simply take over innovative new and small firms. 
B)  They have more creative people. 
C)  both of the above 
D)  none of these

Question 8

A transaction is ______ while ______ is ______.

Accepted Answer

A)  a cost/value/an asset 
B)  an event/strategy/a sound plan 
C)  a cost/strategy/long-term 
D)  an event\strategy\a process 
A)  a cost/value/an asset 
B)  an event/strategy/a sound plan 
C)  a cost/strategy/long-term 
D)  an event\strategy\a process

Question 9

In TCE, asset specificity means:

Accepted Answer

A)  the degree to which an asset is specific to use or user 
B)  the degree to which an asset can be traded 
C)  the degree to which an asset can be valued 
D)  none of these 
A)  the degree to which an asset is specific to use or user 
B)  the degree to which an asset can be traded 
C)  the degree to which an asset can be valued 
D)  none of these

Question 10

When does TCE argue outsourcing will occur?

Accepted Answer

A)  when asset specificity is low 
B)  when asset specificity is medium 
C)  when asset specificity is high 
D)  none of these 
A)  when asset specificity is low 
B)  when asset specificity is medium 
C)  when asset specificity is high 
D)  none of these

Question 11

According to van Marrewijk, the central M&A dilemma that he researched was:

Accepted Answer

A)  how to integrate newly acquired internet firms while preserving their organizational autonomy and capacity for innovation 
B)  how to integrate new internet technology and transfer knowledge to the acquiring firm 
C)  how to integrate different organizational cultures after a merger 
D)  how to integrate different information systems after a merger 
A)  how to integrate newly acquired internet firms while preserving their organizational autonomy and capacity for innovation 
B)  how to integrate new internet technology and transfer knowledge to the acquiring firm 
C)  how to integrate different organizational cultures after a merger 
D)  how to integrate different information systems after a merger

Question 12

The alternative to market transactions in TCE is:

Accepted Answer

A)  barter 
B)  gifts 
C)  employment contracts 
D)  potlatch 
A)  barter 
B)  gifts 
C)  employment contracts 
D)  potlatch

Question 13

Revitalization, as a potential phase in the process of integration, refers to the process through which employees:

Accepted Answer

A)  forget about their cultural roots and embrace new norms and values 
B)  talk about the past to keep cultural myths alive 
C)  embrace the new values of the merged organization 
D)  seek to restore the cultural values of the past 
A)  forget about their cultural roots and embrace new norms and values 
B)  talk about the past to keep cultural myths alive 
C)  embrace the new values of the merged organization 
D)  seek to restore the cultural values of the past

Question 14

Bounded rationality means:

Accepted Answer

A)  we never have perfect knowledge and hence can never be perfectly rational 
B)  we are irrational by nature 
C)  we cannot be rational because we are forgetful 
D)  gaining advantage by being economical with, or even distorting, what we take to be the truth 
A)  we never have perfect knowledge and hence can never be perfectly rational 
B)  we are irrational by nature 
C)  we cannot be rational because we are forgetful 
D)  gaining advantage by being economical with, or even distorting, what we take to be the truth

Question 15

________ involves(s) externalizing an activity that was previously conducted in the organization.

Accepted Answer

A)  Dis-integration 
B)  Outsourcing 
C)  Strategic scoping 
D)  Strategic foresight 
A)  Dis-integration 
B)  Outsourcing 
C)  Strategic scoping 
D)  Strategic foresight

Question 16

Markets, hierarchy and ______ are alternative ways of organizing.

Accepted Answer

A)  networking 
B)  contracting 
C)  sensemaking 
D)  all of these 
A)  networking 
B)  contracting 
C)  sensemaking 
D)  all of these

Question 17

Feasible foresight means that parties to a contract have the capacity to:

Accepted Answer

A)  think about the potential future conduct of the other party and integrate those insights into the ex-ante design of governance 
B)  generate a list of feasible and unfeasible futures 
C)  use strategic models to gain foresight about the future conduct of the other party 
D)  generate governance models that work for both parties 
A)  think about the potential future conduct of the other party and integrate those insights into the ex-ante design of governance 
B)  generate a list of feasible and unfeasible futures 
C)  use strategic models to gain foresight about the future conduct of the other party 
D)  generate governance models that work for both parties

Question 18

What is TCE's key question?

Accepted Answer

A)  whether transactions should be coordinated within a firm or across markets 
B)  whether rationality is bounded enough 
C)  whether to invest more in innovation 
D)  all of these 
A)  whether transactions should be coordinated within a firm or across markets 
B)  whether rationality is bounded enough 
C)  whether to invest more in innovation 
D)  all of these

Question 19

What is Lionel Messi's asset specificity?

Accepted Answer

A)  his #10 shirt 
B)  Adidas boots 
C)  scoring goals 
D)  all of these 
A)  his #10 shirt 
B)  Adidas boots 
C)  scoring goals 
D)  all of these

Question 20

Which of the following forms of governance does Transaction Costs Economics (TCE) consider?

Accepted Answer

A)  vertical 
B)  diagonal 
C)  linear 
D)  triangular 
A)  vertical 
B)  diagonal 
C)  linear 
D)  triangular

Williamson says that market failure problems that result from contracting through vertical integration can be solved through , and __.

Opportunism means:

What is concurrent sourcing?

When does Parmigiani argue that make-and-buy is likely?

TCE has been criticized for its ______ view of markets.

What types of organization did Ouchi add to markets and hierarchies?

What is an advantage of large, well-resourced firms in their attempts to innovate?

A transaction is while is __.

In TCE, asset specificity means:

When does TCE argue outsourcing will occur?

According to van Marrewijk, the central M&A dilemma that he researched was:

The alternative to market transactions in TCE is:

Revitalization, as a potential phase in the process of integration, refers to the process through which employees:

Bounded rationality means:

________ involves(s) externalizing an activity that was previously conducted in the organization.

Markets, hierarchy and ______ are alternative ways of organizing.

Feasible foresight means that parties to a contract have the capacity to:

What is TCE's key question?

What is Lionel Messi's asset specificity?

Which of the following forms of governance does Transaction Costs Economics (TCE) consider?

Strategy: Theory Practice an Introduction

Strategy, Competitive Forces and Positioning

Strategy, Resources and Capabilities

Strategy and Innovation

Strategy and Alliances

Strategy Going Global

Strategy and Corporate Governance

Strategy Processes

Strategy Practice

Strategy and Organizational Politics

Strategy and Strategic Change

Strategy Reconsidered

Filters

Exam 5: Strategy Make or Buy

Williamson says that market failure problems that result from contracting through vertical integration can be solved through ______, ______ and ______.

Opportunism means:

What is concurrent sourcing?

When does Parmigiani argue that make-and-buy is likely?

TCE has been criticized for its ______ view of markets.

What types of organization did Ouchi add to markets and hierarchies?

What is an advantage of large, well-resourced firms in their attempts to innovate?

A transaction is ______ while ______ is ______.

In TCE, asset specificity means:

When does TCE argue outsourcing will occur?

According to van Marrewijk, the central M&A dilemma that he researched was:

The alternative to market transactions in TCE is:

Revitalization, as a potential phase in the process of integration, refers to the process through which employees:

Bounded rationality means:

________ involves(s) externalizing an activity that was previously conducted in the organization.

Markets, hierarchy and ______ are alternative ways of organizing.

Feasible foresight means that parties to a contract have the capacity to:

What is TCE's key question?

What is Lionel Messi's asset specificity?

Which of the following forms of governance does Transaction Costs Economics (TCE) consider?

Strategy: Theory Practice an Introduction

Strategy, Competitive Forces and Positioning

Strategy, Resources and Capabilities

Strategy and Innovation

Strategy and Alliances

Strategy Going Global

Strategy and Corporate Governance

Strategy Processes

Strategy Practice

Strategy and Organizational Politics

Strategy and Strategic Change

Strategy Reconsidered

Filters

Williamson says that market failure problems that result from contracting through vertical integration can be solved through , and __.

A transaction is while is __.