Test you understanding of key chapter concepts by working through this quiz. You can check your answer by clicking on the arrow to the right or on what you think the correct answer is.  The correct answer will then be revealed to you for that question. 

1. Pitelis defines a quasi-stable and durable, formal or informal arrangement between two or more independent firms, aiming to further the perceived interests of the parties involved as ___________.

  1. Inter-firm cooperation
  2. Subcontracting
  3. Market exchange
  4. a and b


a. Inter-firm cooperation

2. Which of the following approaches address inter-firm collaboration?

  1. The Industrial Organization (IO) approach
  2. Institutional theory
  3. Contingency theory
  4. The Machiavellian approach


a. The Industrial Organization (IO) approach

3. According to the Industrial Organization approach, firms cooperate because of the incentive for ________.

  1. Price collusion
  2. Efficiency
  3. Value
  4. None of the above  


a. Price collusion

4. Coase argued that the existence of the firm, as an alternative to market transactions, can be attributed to _______.

  1. High market transaction costs
  2. The benefits of a unified organizational culture
  3. Economies of scale
  4. Economies of scope 


a. High market transaction costs

5. For Penrose (1959), firms are superior to markets in terms of their _________.

  1. Management
  2. Innovation
  3. Endogenous creation of knowledge, innovation and value
  4. None of the above


c. Endogenous creation of knowledge, innovation and value

6. Firms collaborate in order to:

  1. Access knowledge
  2. Learn from each other
  3. Overcome trade barriers
  4. All of the above


d. All of the above

7. According to Gulati, ___________ are defined as purposive linkages between organizations that cover collaborations involving an exchange, a co-development or a sharing relationship.

  1. Franchise agreements
  2. Copyright agreements
  3. Intellectual property intangibles
  4. Strategic alliances


d. Strategic alliances

8. Which of the following are types of strategic partnership?

  1. Comprehensive alliances
  2. Functional alliances
  3. Production alliances
  4. All of the above


d. All of the above

9. The way in which alliance partners integrate their interests, use combined resources and relate is called ___________?

  1. Alliance synergy
  2. Alliance management
  3. Alliance governance
  4. None of the above


c. Alliance governance

10. Alliances between firms that are also competitors in another sphere is an example of:

  1. Synergy
  2. Co-opetition
  3. Cooperation
  4. Organic networks


b. Co-opetition