Which of the following statements about the difference between transaction cost theory and resource dependence theory is true?
A) Transaction cost theory proposes the use of a merger as an interorganizational strategy but resource dependence theory advocates the use of joint venture.
B) Transaction cost theory explains how to manage symbiotic interdependencies but resource dependence theory explain how to manage competitive interdependencies.
C) Transaction cost theory is a better predictor than a resource dependence theory of why companies choose a certain form of interorganizational strategy.
D) Resource dependence theory proposes the use of strategic alliances, but transaction cost theory recommends not using alliances.
Question 2
When an organization faces a large-scale change with a high probability of cultural resistance, the OD practitioner and management must determine _____.
a. how to reinforce the new value system
b. a way to break the culture
c. the budgeting process in the reorganization
d. the economic, political, and cultural forces at work
e. whether strategic change is really a viable alternative
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