Generally, the
Blank
______ and more sophisticated a firm is, the
Blank
______ likely it will be to use supply chain intermediaries.

Question

Generally, the 
Blank
______ and more sophisticated a firm is, the 
Blank
______ likely it will be to use supply chain intermediaries.

BlackTom AI · Accepted Answer

To start, let’s restate the problem in plain terms: We’re asked to fill the blanks in the sentence about how the size of a firm relates to its use of supply chain intermediaries, using the given options.
Option 1: 'smaller; more' This would imply smaller firms rely more on intermediaries. While small firms sometimes depend on intermediaries due to lack of scale or expertise, the general trend in logistics and supply chains is that larger firms have more capabilities in-house, not necessarily more reliance on intermediaries. This makes this option plausible in some contexts but not the strongest general rule.
Option 2: 'larger; more' Here, the claim is that larger firms are more likely to use intermediaries. In practice, larger firms often have greater bargaining power, more resources, and more integrated logistics capabilities, which can reduce the need for external intermediaries. So saying larger firms use more intermediaries contradicts common economies of scale and integration effects observed in supply chains.
Option 3: 'larger; less' This option states that as a firm grows bigger (larger), it is less likely to rely on supply chain intermediaries. This aligns with the typical understanding that larger firms can develop in-house capabilities, negotiate directly with suppliers, and implement more integrated supply chain solutions, thereby reducing dependence on intermediaries.
Option 4: 'smaller; less' This would suggest that smaller firms rely less on intermediaries, which is counterintuitive in many cases. Smaller firms often depend more on intermediaries because they lack scale, negotiation leverage, and specialized logistics expertise. So this option generally contradicts observed patterns.
In evaluating the options, the key concept is that firm size often correlates with the ability to internalize supply chain activities. Larger firms tend to internalize more activities to achieve efficiency and control, which would reduce the need for intermediaries. Conversely, smaller firms typically rely more on external partners to access broader networks and capabilities they do not possess internally. The reasoning above makes Option 3 the most consistent with that pattern, while the other options either invert the relationship or describe less common scenarios.
Thus, the sequence of reasoning shows that Option 3 ('larger; less') best fits the typical relationship between firm size and the use of supply chain intermediaries, while the other options either misstate the direction of the relationship or ignore the efficiencies gained through scale and integration.

Generally, the Blank and more sophisticated a firm is, the Blank likely it will be to use supply chain intermediaries.

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Generally, the Blank ______ and more sophisticated a firm is, the Blank ______ likely it will be to use supply chain intermediaries.

View Explanation

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Generally, the Blank and more sophisticated a firm is, the Blank likely it will be to use supply chain intermediaries.