In the context of interorganizational processes, which of the following is a disadvantage of modular organizations?
A) They cost significantly more to run than traditional organizations because of the addition of outsourcing costs to their fixed costs.
B) They are characterized by a loss of control that occurs when key business activities are outsourced to other companies.
C) They are slow because members cannot combine their efforts to meet customers' needs.
D) They are unstable and have temporary relationships in a network alliance.
Ans: B) They are characterized by a loss of control that occurs when key business activities are outsourced to other companies.
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