A disadvantage when engaging and partnering with firms in a network is the possibility of being locked in partnerships.Select one:TrueFalse

Answer

The statement is True.

When engaging and partnering with firms in a network, one of the significant disadvantages is indeed the risk of being "locked in" to a particular partnership. This situation can occur when a firm becomes overly dependent on its partners for resources, technology, or market access. Such dependence may limit the firm's flexibility to explore alternative partnerships or to adjust its strategy in response to changing market conditions.

Additionally, the locked-in condition can lead to increased costs or reduced bargaining power since exiting a partnership can involve breaking contractual obligations, loss of investment in the partnership, or damage to the firm's reputation. Therefore, while partnerships can provide opportunities for growth and innovation, firms must carefully manage their relationships to avoid becoming trapped in unproductive or unfavorable partnerships.