SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Industrial Strategy 2022

» Start this Course
(Practice similar questions for free)
Question:

What is subcontractor opportunism?

Author: Hjalmer Pedersen



Answer:

When a subcontractor exploits their power to decrease quality / increase price. Subcontractor opportunism is found where: • There are few alternatives to the subcontractor • The product or service is complex and changing, and therefore hard to specify in a legally binding contract • Principal firm investments have been made in specific assets, which the subcontractor knows will have little value if they withhold their product or service. (Supplier Power)


0 / 5  (0 ratings)

1 answer(s) in total